IdentitylQ has been installed and set up with the contents of IdentityExtended.

In SailPoint IdentityIQ, the configuration in IdentityExtended.hbm.xml file as shown in the image indeed outlines the use of extended identity attributes. These attributes (extended1, extended2, etc.) are custom attributes that are appended to the standard identity object model to store additional identity-related data.

According to the official SailPoint IdentityIQ documentation, when defining identity mappings under Global Settings > Identity Attributes, only up to 12 additional attributes can be made searchable within the IdentityIQ system. This limitation is crucial because it directly impacts the efficiency of search operations in large environments, where making too many attributes searchable can significantly slow down performance.

Once you define these 12 searchable attributes, any additional attributes can still be added, but they will not be indexed for search operations. This means that while the data in these attributes can be used in workflows, reports, and other operations, they cannot be used in search filters in the IdentityIQ user interface.

This limitation is particularly important when planning the design of the identity schema, as it affects both performance and usability. Therefore, the statement in question is correct and accurately reflects the constraints imposed by SailPoint IdentityIQ in terms of searchable identity attributes.