The terms SSO and federated identity are often used in parallel. But the reality is that they serve different functions. So, federated identity vs SSO - What’s the difference?
Well, for most IAM and CIAM platforms, both these features can be used relatively easily. However, if you’re wondering what makes them different, we’re here to set the record straight.
What is Federated Identity?
Federated identity or Federated identity Management allows users to access multiple, independent domains or companies using a single set of credentials. Instead of maintaining separate accounts for each system, it acts as an SSO framework for third-party applications.
So, how is it different from SSO? The distinction lies in scope—federated identity is used across independent domains, whereas SSO is typically used for applications within a single company.
Both approaches simplify access and improve the user experience by reducing the need for multiple logins.
How Does Federated Identity Work?
- Step 1 - Access Request: A user attempts to access an application belonging to a different company. The system redirects them to their home domain’s IdP or a shared IdP.
- Step 2 - Authentication: The user logs in using their existing credentials, which may involve multi-factor authentication.
- Step 3 - Token Generation: Upon successful authentication, the IdP issues a security token (such as a SAML assertion) containing user details.
- Step 4 - Access: After this, the external application verifies the token and grants access based on the received information.
What is Single Sign-On (SSO)?
Single sign-on (SSO) allows users to authenticate once and gain access to multiple related applications or systems without having to re-enter their credentials for each one. So technically, SSO can fall under the umbrella of identity federation.
On the whole, SSO solutions allow a login process that speeds up and improves security by minimizing the risk of password fatigue and weak passwords. In this sense, it is a core component of modern identity and access management.
How Does SSO Work?
- Step 1 - Login: The user signs into a central authentication system, such as an SSO provider.
- Step 2 - Session: Upon authentication, a session is established and maintained.
- Step 3 - Token Issuance: The SSO provider generates a token or cookie representing the authenticated session.
- Step 4 - Access Request: When accessing another application, the system checks for a valid token.
- Step 5 - Authentication Approval: If the token is valid, access is granted without requiring a new login.
Federated Identity vs. SSO: The Key Differences
1. Protocols Used and Functionality
Federated identity management and single sign-on (SSO) both aim to simplify user access, but they differ in scope.
- SSO lets users access multiple applications with one set of credentials, often within the same organization.
- Federated identity, on the other hand, allows users to access applications across different companies or organizations, it does so by relying on protocols like SAML or OAuth to exchange authentication information.
2. Most Common Use Cases
SSO is a lot more commonly used for internal applications in a company and uses something similar to a closed loop in terms of accessibility. While on the other hand, Federated Identity can be used for external, as well as internal usage.
This type of authentication is used commonly in identity management to grant access to applications that manage databases or assign tasks or inventory management - some examples would be:
- Proprietary medical software like EHR systems
- Software development platforms
- Sales platforms
- Customer support systems
- CRM systems
Federated Identity Management or FIM, on the other hand, is used to authenticate users on multiple external applications using a trusted IdP, which can even be through social logins. Examples of this would be signing on to:
- Social media applications
- E-commerce stores or
- Authenticating your identity on applications or software
3. Security
SSO or Single Sign On, is technically a type of federated identity or FIM. That aside, this type of authentication centralizes access control using user authentication that uses SSO tokens within a company that is encrypted.
- Federated Identity management on the other hand is used for authentication across multiple companies and tools, even outside companies.
- In both federated identity management and SSO, to manage this access, it uses a trusted identity provider to verify their identity and facilitate access using OAuth or SAML.
- Both can be equally secure, however, this goes especially if your IdP has an MFA solution or framework to verify user identity already in place.
When Should You Use Federated Identity and SSO?
- SSO: Ideal for simplifying access to multiple applications within a single organization, improving user experience, and strengthening security. It's a good choice for internal applications and systems.
- Federated Identity: Best suited for scenarios where users need to access resources across different organizations, such as business partnerships, cloud services, or government portals. It enables secure collaboration and resource sharing.
Which Option is Right for Your Business?
The best option depends on your specific needs and context. When the question asked is federated identity vs SSO - which is better, the answer is, it depends!
if you need to manage access to multiple applications within your company, SSO is likely the right choice.
However, for anyone who needs access and collaboration across companies, federated identity is more appropriate. In terms of Federated Identity vs SSO, for anyone that needs to partner with companies, federation is one of the more popular tools people opt to use.
For most companies, however, a combination of both SSO and federated identity is used to address different access requirements for external tools, and tools used internally within one company.
Federated Identity vs SSO: Key Takeaway
In terms of federated identity management vs SSO, both play major roles in the world of identity and access management. Also, the fact is they both make access a lot more simple and quick.
In the case of SSO - you get quick access, however, in the case of federated identity, you get authentication and sign-ups across multiple platforms that are consistent across the board.
With Infisign, you get access to many different tools including both federated identity and SSO through Infisign’s IAM software built on a zero-trust framework.
Want to know what Infisign can do for you? Book a free demo to find out!
FAQs About Federated Identity and SSO
What is an example of a federated identity?
A good example of federated identity management would be logging into a website using a Google or Facebook account. The website trusts these providers to authenticate the user without requiring a new account.
What is the difference between identity and SSO?
Identity refers to user information, while SSO is a method for accessing multiple applications with a single login.
What is the difference between IdP and SSO?
An Identity Provider (IdP) stores and manages identities, while SSO allows users to access multiple applications after logging in once.
What is federation ID in SSO?
A federation ID is a unique identifier that links a user’s identity across different systems in a federated environment. This allows multiple companies to recognize the same user without sharing passwords.
