SSO vs. Federated Identity: Understanding the Differences and Benefits

In essence, SSO is a subset of Federated Identity. While SSO focuses on internal access, Federated Identity extends beyond organizational boundaries.
Identity & Access Management
 • 
August 29, 2024
 • 
2 min read

In today's digital landscape, security and user experience are the two most important requirements for businesses of any size. As businesses deploy more applications and services, controlling user access and authentication becomes more difficult and important. Single SignOn (SSO) and Federated Identity Management are two effective solutions to address this challenge. This article will demystify these ideas explain their benefits and describe their differences in order to provide a full knowledge.

In the modern digital landscape, security and user experience are paramount. As businesses increasingly adopt multiple applications and services, managing user access and authentication becomes both challenging and critical. Single SignOn (SSO) and Federated Identity Management are two powerful solutions that address these challenges. This chapter aims to demystify these concepts, explain their benefits, and clarify their differences for a comprehensive understanding.

What is SSO?

Single SignOn (SSO) is an authentication process allowing users to authenticate once and gain access to multiple applications without needing to reenter credentials. Implementing SSO can significantly enhance user experience by reducing the need to remember numerous passwords and streamline access to various resources.

What are the Benefits of SSO?

1. Improved User Experience: Users appreciate the convenience of signing in once and gaining access to multiple applications, reducing friction and promoting productivity.

2. Enhanced Security: By centralizing the authentication process, organizations can implement stronger security measures and closely monitor access patterns, reducing the risk of password related breaches.

3. Reduced IT Overhead: IT administrators benefit from simplified user management and decreased support calls related to password resets and account lockouts.

4. Compliance and Audit: Centralized authentication provides better audit trails and simplifies compliance with various regulations, such as GDPR and HIPAA.

What is an Example of SSO?

A practical example of SSO can be found in many corporate environments where employees use services like Google Workspace. Once an employee logs into their Google account, they can access Gmail, Google Drive, Google Calendar, and other Google services without reentering their credentials.

What is Federated Identity?

Federated Identity Management extends the concept of SSO across multiple organizations, allowing users to authenticate with one identity provider and access resources across different domains. It relies on trust relationships between organizations to securely share authentication credentials.

What are the Benefits of Federated Identity?

1. Seamless Integration Across Organizations: Federated Identity allows users to access services across different organizations without managing multiple credentials, fostering collaboration and ease of use.

2. Cost Efficiency: Reduces the administrative overhead and costs associated with managing separate identity systems for different organizations.

3. Enhanced Security Protocols: Utilizes secure, standardized protocols like SAML (Security Assertion Markup Language) or OAuth, ensuring robust security during the authentication process.

4. Scalability: Easily scalable to accommodate new applications and organizations, making it ideal for growing businesses and collaborations.

What is an Example of Federated Identity?

A notable example of Federated Identity is the relationship between Microsoft Azure Active Directory (Azure AD) and various SaaS applications. If an organization uses Azure AD for identity management, employees can authenticate with their Azure AD credentials to access third party SaaS applications like Salesforce, Dropbox, and Office 365.

The Difference Between SSO and Federated Identity

While both SSO and Federated Identity aim to simplify user authentication and enhance security, their scopes and use cases differ:

1. Scope of Implementation:

   SSO: Typically used within a single organization to provide seamless access to multiple internal applications.

   Federated Identity: Extends beyond a single organization, enabling access across various organizations that have established trust relationships.

 2. Use Cases:

   SSO: Ideal for enterprises managing multiple applications under one domain.

   Federated Identity: Suitable for scenarios involving collaboration between different organizations, such as business partnerships or consortiums.

3. Authentication vs. Authorization:

   SSO: Primarily focuses on authentication, ensuring that once authenticated, a user can access multiple services.

   Federated Identity: Encompasses both authentication and authorization, managing user access permissions across different domains.

Conclusion

Understanding the differences and benefits of SSO and Federated Identity is crucial for IT administrators, cybersecurity professionals, and business leaders. Implementing the right solution can significantly enhance security, streamline user experience, and reduce administrative overhead. Whether you choose SSO for internal efficiency or Federated Identity for crossorganizational collaboration, both solutions offer robust frameworks to meet modern authentication challenges. By leveraging these technologies, organizations can foster a more secure, efficient, and userfriendly digital environment.

Step into the future of digital identity and access management.

Learn More
Vijina
Digital Marketing Manager

Vijina honed her digital marketing expertise in various industries, fostering a strong understanding of the evolving online landscape and the ever-changing needs of businesses.

Enter the future of digital security.

Experience AI-enhanced IAM capabilities and better security.
Checkmark
Reusable identity
Checkmark
Zero-Knowledge Proofs
Checkmark
Zero Trust practices
Checkmark
AI Agents