SSO
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March 14, 2025
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3 Mins Read

SSO vs Password Manager: What are the Differences?

Jegan Selvaraj
Founder & CEO, Infisign

SSO vs password manager - should you invest in SSO or stick with a password manager?

The answer is that it depends entirely on your company. If you’re a tech company looking to scale or are in the process of launching your own product, SSO is definitely worth the investment.

However, there are other aspects that should help you decide, and we’ll cover those in this article.

What is Single Sign-On (SSO)?

Single sign-on (SSO) or SSO is an authentication method that allows users to access multiple applications with a single set of credentials.

Instead of logging in to each application separately, users can log in once and access all authorized applications without re-entering their credentials.

On the whole, SSO solutions add to your user experience and improve security by lowering the chances of password fatigue and weak passwords using SAML, OAuth, and OIDC protocols.

What is a Password Manager?

A password manager is a software application that securely stores and manages user credentials for various online accounts. Password managers generate strong, unique passwords for each account and encrypt them for protection.

Users only need to remember one master password to access the password manager and retrieve their credentials.

SSO vs Password Manager: The Key Differences

Typical Use Cases

SSO vs password manager, are they used differently? Well, yes, an SSO solution or provider is typically used within companies to allow employees with access to various work-related applications. 

SSO improves access and improves security by lowering the need for employees to remember multiple passwords. 

Cloud-based password managers, however, are commonly used by individuals to manage their online accounts, such as social media, email, and online banking. 

Password Managers help users generate and store strong, unique passwords for each account, improving security and lowering the dangers of password reuse. SSO however removes this altogether with encrypted protocols like SAML and OAuth - meaning better security and possible access management.

Security

Both SSO and password managers can improve security. SSO lowering the risk of password fatigue and promotes the use of strong, unique passwords.

Password managers generate and store strong, unique passwords for each account, lowering the risk of password reuse and security breaches.

However, SSO relies on a central identity provider, which can be a single point of failure if not properly managed. That said, they remove the need for passwords altogether through encrypted protocols that use passwordless authentication - meaning you’re less likely to be hacked.

Cloud-based Password managers, on the other hand, are typically managed by individual users, which can lead to inconsistencies in password security practices.

Functionality and Technical Complexity

When picking between password manager vs SSO, you need to keep in mind whether you’re using an IAM software or SSO provider. Because otherwise, in-house SSO can be complex to implement and manage, requiring a dedicated admin team to help make it work smoothly. In comparison, if you use a CIAM, IAM, or SSO provider, this is no longer an issue as it comes with multiple integrations. 

  • SSO allows centralized authentication, allowing users to access multiple applications with one login. 
  • Password managers securely store and manage user credentials, simplifying logins to individual accounts. 
  • On the whole, Password managers are generally easier to use and require less technical expertise. However, with the use of an IAM software or CIAM software, SSO can be put in place fairly easily.

User Experience and Who Typically Manages It

SSO vs Password Manager - which is better to use? Password managers simplify logins to individual accounts, but users still need to manage and access the password manager itself. 

  • SSO speeds up access to multiple applications, improving user experience by removing the need for multiple logins. 
  • In the case of SSO, it is usually managed by IT administrators within companies, who are responsible for configuring and maintaining the SSO system.
  • Password managers, however, are typically managed by individual users, who are responsible for creating and storing their own passwords.

Benefits and Challenges: SSO vs Password Manager

Benefits of SSO

  • Improved User Experience: SSO simplifies access to multiple applications, removing the need for users to remember multiple usernames and passwords.
  • Increased Security: SSO lowers the risk of password-related security breaches by promoting the use of strong, unique passwords and lowering password fatigue.
  • Centralized Access Control: SSO gives administrators a central point of control for managing user access to applications, improving security and compliance.

Challenges of SSO

  • Limited Scope: SSO is primarily designed for accessing applications within a specific company or domain, not across different platforms and websites.
  • Dependence on Identity Provider: SSO relies on a central identity provider, which can be a single point of failure if not properly managed.
  • Potential Security Risks: If the SSO system is compromised, it could grant unauthorized access to multiple applications at once.

Benefits of Password Manager

  • Strong Password Generation: Password managers generate strong, unique passwords for each account, lowering the risk of password reuse and security breaches.  
  • Cross-Platform Compatibility: Cloud-based password managers can be used to manage credentials for various online accounts across different platforms and websites.  
  • Offline Access: Password managers can store credentials locally, allowing users to access their accounts even without an internet connection.

Challenges of Password Manager

  • Master Password Dependence: Users need to remember a single master password to access the password manager, which can be a challenge for some.  
  • Potential Security Risks: If the password manager is compromised or the master password is lost, it could expose all stored credentials.  
  • Limited Functionality: Cloud-based password managers primarily deal with storing and managing credentials, not allowing access to applications like SSO.

How SSO and Password Manager Solutions Can Work Together

SSO and password managers can complement each other to allow a complete solution for credential management. 

  • While the debate is often SSO vs password manager, the reality is that it should be more SSO and password management solutions as they can complement your processes and keep your authentication a lot more flexible.
  • SSO can be used for accessing work-related applications within a company, while password managers can be used for managing personal and other online accounts.
  • For partners, easy sign-ups and deep integrations, SSO and federation can be allowed across companies as well.
  • This combination allows users to benefit from the convenience and security of both solutions.

Choosing the Right Solution for Your Company or Platform

The choice between SSO and password manager depends on the specific needs and context of your company. 

  • So while you might be inclined to look at the overall benefits of an SSO vs password manager, it's more essential to look to see if their features are even relevant to your business.
  • SSO is a good choice for businesses that need to manage access to multiple applications within their company,
  • However, password managers are better suited for people or companies that need to manage credentials for various online accounts across different platforms and websites.

How Infisign Helps with SSO and Password Management

While many apps might be forcing you to pick between either SSO vs a password manager, Infisign gives you both on one platform. 

Infisign helps improve customer sign-ups and simplify processes. For teams, on the other hand, it improves productivity and helps with IAM compliance. Not to mention it comes with the use of AI in access management.

With Infisign’s IAM Suite and UniFed you get solutions for both customers and your team. The software comes with 6000+ APIs and SDKs - meaning it will work with your existing tech stack.Moreover, you also get Adaptive MFA, attribute-based access control, Just-in-time access and Impersonation (features that allow you to grant temporary access to employees and app users). Want to know more? Reach out for a free demo!

Step into the future of digital identity and access management.

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Jegan Selvaraj
Founder & CEO, Infisign

Jegan Selvaraj is a serial tech-entrepreneur with two decades of experience driving innovation and transforming businesses through impactful solutions. With a solid foundation in technology and a passion for advancing digital security, he leads Infisign's mission to empower businesses with secure and efficient digital transformation. His commitment to leveraging advanced technologies ensures enterprises and startups stay ahead in a rapidly evolving digital landscape.

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