Single Sign-On (SSO) vs Federated Identity Management

Kwasi Twum-Ampofo (KTA)
6 min readApr 3, 2024

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Single Sign-on vs FIM

Introduction:

Dear Cloud Security Enthusiasts,

Welcome to the Cloudoers blog post! We’re so happy you’re here. Today, we’re going to talk about something cool called “getting into different places with just one key.” Imagine you have lots of secret doors to different rooms, but instead of carrying around lots of keys, you only need one special key to open them all. That’s kind of like what we’ll talk about today. We’ll show you how you can use just one secret code to open many different places on the internet, like websites and apps. It’s like magic! So, come along with us as we explore how this special key, called Single Sign-On and Federated Identity Management, can help you go to lots of different places online with just one set of secret codes.

The primary distinction between Federated Identity Management (FIM) and Single Sign-On (SSO) resides in their scope of access. SSO enables users to utilize a single set of credentials for accessing multiple systems (applications) within a unified organization (a single domain). Conversely, FIM permits users to access multiple systems spanning federated organizations.

What is Single Sign-On?

Single Sign-on — is a technology that allows users to access multiple applications or resources on a domain using a single set of credentials. This feature can enhance the login process for both employees and customers, simplifying their access. Normally, employees are required to log in to various business applications like messaging and email accounts, HR tools, intranet portals, financial databases, and more. By implementing Single Sign-On (SSO), they gain access to all necessary resources using a single set of credentials, removing the necessity to recall or input a distinct password for each account.

Likewise, customers frequently utilize numerous services or applications via a single business account or portal, with banking serving as a notable instance. As illustrated in the diagram below, Single Sign-On (SSO) enables bank customers to authenticate using a unified set of credentials, granting them access to various functions such as account balance inquiries and fund transfers. Despite these services being distinct applications managed by the bank internally, SSO ensures a cohesive experience for your customers.

Single Sign-On (SSO)

Benefits of Single Sign-On

Stronger Security

Single Sign-On (SSO) enhances enterprise security by minimizing the burden of managing multiple passwords for your users. Given that passwords are a common target for cyber attacks, diminishing their usage also mitigates the risk of a breach. By requiring users to remember only one password, it also diminishes the likelihood of risky password practices such as password reuse, writing them down, or sharing them with others.

Better Customer Experience

Single sign-on eradicates the inconvenience of managing numerous passwords and logging in repeatedly. Once customers sign in, they can effortlessly navigate through all the required products and services. Given that nearly three out of four customers prioritize their experience when making purchasing decisions, implementing single sign-on is an excellent strategy to make a lasting impression.

Improve Employees Productivities

Implementing single sign-on provides your employees with simplified access to the necessary resources for their roles. This optimization accelerates access without compromising security, thereby enhancing their efficiency and allowing them to dedicate more time to critical tasks.

Lower Costs

Reducing the number of passwords likewise reduces the volume of help desk tickets stemming from password-related issues. While fewer password resets may seem inconsequential, certain organizations allocate $500k up to $1 million annually solely for password-related support expenses. By minimizing the proliferation of passwords, significant cost savings can be achieved.

What is Federated Identity Management (FIM)?

Federated Identity Management, commonly referred to as federated Single Sign-On (SSO), involves creating a trusted connection between distinct organizations and third parties, such as application vendors or partners. This enables the sharing of identities and user authentication across multiple domains. With federated domains, users can authenticate once in one domain and subsequently access resources in another domain without the need for a separate login process.

Federated Identity Management (FIM) is realized by employing standard protocols such as SAML, OAuth, OpenID Connect, and a System for Cross-Domain Identity Management (SCIM). These open standards facilitate the secure exchange of authentication and access data across domains. Consequently, users can authenticate once and access applications and systems across all federated domains seamlessly. Essentially, federated identity management enables single sign-on across organizational boundaries.

Security Assertion Markup Language (SAML) — is an authentication standard that allows for federated identity management and can support single sign-on.

OAuth — is a special authorization protocol that makes third-party websites and apps accessible without logging the user’s credentials or personal information.

OpenID Connect — is an identity layers built on top of the OAuth 2.0 framework. It allows third-party applications to verity the identity of the end-user and to obtain basic user profile information. In a not shell, it is authentication protocol used for signing users into client applications.

System for Cross-Domain Identity Management (SCIM) — is a set of application-level protocols that used JSON, REST, and several different authentication methods to automate the tasks of data provisioning.

Federated Identity vs SSO

While you may often encounter SSO and FIM mentioned together, it’s important to note they aren’t interchangeable terms. Single sign-on grants access to applications and resources within a single domain, whereas federated identity management enables single sign-on across multiple domains or organizations.

As an illustration, FIM becomes essential for organizations to provide employees with effortless access to third-party applications such as Salesforce, Workday, or Zoom. Extending the banking scenario mentioned earlier, FIM enables bank customers to smoothly access externally managed banking services, including ordering checks, initiating money transfers through Zelle, and applying for loans.

How Does Federated Identity Management Work?

Federated identity management encompasses various workflows, yet a prevalent configuration involves one organization serving as the identity provider (IdP), storing user identities. The IdP forges a trusted connection with service providers (SPs) external to the original organization’s security domain.

For instance, an organization where an employee works might serve as the Identity Provider (IdP), while the third-party applications utilized for business operations act as Service Providers (SPs). The diagram provided below outlines the sequential process comprising six steps for this particular scenario.

  1. The employee initiates an access request to an application via their organization, functioning as the IdP.
  2. The IdP solicits the employee’s credentials.
  3. The IdP validates the employee’s identity using stored data established during the account setup or upon joining the organization.
  4. Upon attempting to access one of the third-party applications, the SP sends a request to the IdP.
  5. The IdP confirms the user’s authentication and grants permission to access the service, typically conveyed through a SAML assertion or similar protocol.
  6. Subsequently, the employee proceeds without requiring further authentication.

Benefits of Federated Identity Management

Ensuring that your employees and customers can easily access all necessary resources, even if those apps and services are managed by third parties outside your firewall, is essential for driving digital transformation.

Federated identity management helps you:

  1. Enhance security to mitigate rising threats and prevent costly data breaches.
  2. Boost employee productivity by enabling remote work from any location and device.
  3. Improve customer satisfaction to foster loyalty and drive revenue growth.
  4. Reduce expenses and enhance the effectiveness of your IT resources.

Thank you for reading!

#sso #fim #security

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Kwasi Twum-Ampofo (KTA)

MultiCloud Architect @ KTA Mobile Communications, Inc. | DevSecOps, Systems Analyst