Federated Identity Management vs. Single Sign-On (SSO): Unraveling the Key Distinctions
Tags: federatedsso, singlesignon, ciamsolutions, identitymanagement
Published: 2023-08-28 16:24:48

## **Introduction**

In today's corporate ecosystem, where the efficient flow of information is critical, organizations constantly adopt new digital tools to streamline their operations. However, with each new application comes a fresh challenge: user access credentials. Each software addition necessitates end-users to create yet another username and password combination, burdening employees and customers with the arduous task of remembering numerous access details. Astonishingly, research reveals that more than 60% of employees resort to reusing the same password for both professional and personal accounts, opening the door to potential security breaches. Approximately 13% of users regularly recycle passwords across all their online platforms, creating a hacker's paradise. Disturbingly, compromised passwords account for a staggering 81% of hacking-related breaches. 

In response, organizations are turning to digital identity management tools, with **[Single Sign-On (SSO) and Federated Identity Management (FIM)](https://www.loginradius.com/blog/identity/federated-identity-management-vs-sso/)** emerging as top contenders. However, many organizations grapple with understanding the distinctions between these two methods and the implications they carry for overall security. This exploration aims to demystify SSO and FIM, offering insights into their differences and the advantages they provide in the realm of organizational security.

![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/ldmn9jqyawhivaqncx4z.jpg)

## **What is Single Sign-On?**

Single Sign-On (SSO) is the technological marvel that enables users to transcend the constraints of traditional login systems. With SSO, you can seamlessly access various web applications securely through a single set of credentials. This not only saves time but also enhances convenience, as it eliminates the need to remember and enter different usernames and passwords for each application.

## **How Single Sign-On Works?**

Single Sign-On (SSO) offers a compelling alternative to the conventional password paradigm, replacing it with a token-based system. When users access an application within an SSO environment, they are issued a unique security token. This token serves as a surrogate for traditional login credentials like passwords. 

It encapsulates essential user information, such as email addresses and usernames, within a secure digital container. When the time comes to authenticate, the Identity Provider performs a comparison between the token's content and the user's provided credentials, enabling a streamlined and secure access process.

## **Benefits of Single Sign-On**

1. Reduces costs and password resets
2. Streamlines production
3. Enhanced customer experience
4. Reliable security

## **What is Federated Identity Management (FIM)?**

In the realm of Federated Identity Management (FIM), enterprises maintain their individual identity management systems while fostering interoperability with other organizations. This coexistence of identity systems is made possible through a third-party service known as the identity provider (IdP) or identity broker. This intermediary entity plays a pivotal role in FIM, acting as a trusted guardian of user credentials.

## **How Does Federated Identity Management Work?**

At the heart of Federated Identity Management (FIM) lies the concept of enabling users to employ a single digital identity across a multitude of domains and organizations. The journey commences when a user endeavors to access a resource hosted by a service provider. At this juncture, the service provider sends out a request to the user's chosen identity provider. 

The identity provider, armed with its authentication mechanisms, rigorously verifies the user's identity and subsequently equips the service provider with the necessary credentials. This orchestration of authentication and credential exchange, commonly known as identity federation, is the cornerstone of FIM. It streamlines user access to resources from different organizations, eliminating the hassles associated with maintaining separate login credentials for each entity.

## **Benefits of Federated Identity Management**

Organizations stand to gain significantly from embracing FIM, as it ushers in a new era of efficiency and cost-effectiveness. One of the core advantages is the simplification of identity management, a process historically riddled with complexity. With FIM, the organizational burden of managing multiple identities and credentials is considerably lightened. This translates to tangible cost savings in terms of both time and resources.

## **Federated Identity Management vs. SSO**

While Single Sign-On (SSO) is a powerful tool in its own right, it operates within the confines of a single organization, typically referred to as a single domain. Users with SSO can utilize a single set of credentials to access multiple systems and applications within this specific organizational boundary.

Federated Identity Management (FIM), on the other hand, extends its reach far beyond the borders of a single organization. It facilitates the seamless access of users to systems, applications, and networks across multiple federated organizations, effectively breaking down the silos that often separate different entities. In essence, FIM enables users to access resources not just within one organization but across a collaborative federation of organizations.

## **Conclusion**

In summary, the expansion of digital identity management represents a strategic initiative that can propel organizations towards enhanced work efficiency. The choice between Single Sign-On (SSO) and Federated Identity Management (FIM) offers organizations a spectrum of benefits that extend far beyond convenience. These protocols promise heightened security, financial advantages, and optimized workflows. As organizations progress in their mission to provide top-notch customer and employee support, SSO and FIM emerge as indispensable tools, simplifying the intricacies of password management and user authentication and ultimately leading to a more efficient and secure operational landscape.