Federated Identity vs Single Sign-On (SSO) in Technology - What is The Difference?

Last Updated Apr 16, 2025

Single Sign-On (SSO) streamlines user authentication by allowing access to multiple applications with one set of credentials, enhancing security and user convenience. This method reduces password fatigue and minimizes the risk of credential theft, making it a vital component in modern identity management. Discover how implementing SSO can transform Your organization's login experience by reading the full article.

Table of Comparison

Feature Single Sign-On (SSO) Federated Identity
Definition User accesses multiple applications with one set of credentials within a single organization. User authentication and identity data shared across multiple organizations or domains.
Scope Within a single enterprise or domain. Across multiple enterprises or domains.
Authentication Control Centralized internally managed. Decentralized with trust agreements between parties.
Use Case Employees accessing internal apps like email, intranet. Third-party access to services like social login, partner systems.
Technology Standards Proprietary or standards-based (SAML, OAuth within one domain). Standards-based protocols (SAML, OAuth, OpenID Connect).
User Experience Seamless sign-on across internal systems. Seamless, cross-domain identity verification.
Security Controlled by organization's security policies. Relies on mutual trust and federated security policies.

Introduction to Single Sign-On (SSO) and Federated Identity

Single Sign-On (SSO) enables users to access multiple applications with one set of login credentials, enhancing security and user convenience by reducing password fatigue. Federated Identity extends this concept by allowing identity information to be shared across multiple trusted domains or organizations, facilitating seamless access to external resources without repeated authentications. Both systems streamline user authentication processes but differ in scope: SSO centralizes access within a single organization, while Federated Identity manages identities across diverse systems and enterprises.

Understanding Single Sign-On (SSO)

Single Sign-On (SSO) is an authentication process that allows users to access multiple applications with a single set of login credentials, improving user experience and security by reducing password fatigue. It centralizes authentication through an identity provider, ensuring seamless access across connected services within the same organization or domain. Unlike Federated Identity, which enables identity sharing across different organizations, SSO focuses on simplifying access management within a unified enterprise environment.

What is Federated Identity?

Federated Identity is a system that allows users to access multiple independent domains or organizations using a single set of credentials managed by a trusted identity provider. It enables seamless authentication across different security realms by establishing trust relationships between identity providers and service providers. Unlike Single Sign-On (SSO), which typically operates within a single organization or domain, Federated Identity extends authentication and authorization capabilities across various entities, simplifying user management and enhancing interoperability.

Key Differences Between SSO and Federated Identity

Single Sign-On (SSO) enables users to access multiple applications with one set of login credentials within a single domain or organization, while Federated Identity allows seamless authentication across multiple distinct organizations or domains by sharing user identity information. SSO centralizes user management internally, enhancing convenience but limiting cross-domain access, whereas Federated Identity relies on trust relationships between identity providers and service providers, promoting interoperability and user mobility. The core difference lies in SSO's focus on internal sign-in simplification versus Federated Identity's capability for cross-enterprise authentication and resource sharing.

How SSO Works: A Step-by-Step Overview

Single Sign-On (SSO) works by allowing users to authenticate once and gain access to multiple applications without re-entering credentials. The process begins with the user logging into an identity provider, which then issues a token or assertion that is trusted by various service providers. These service providers validate the token, granting seamless access across platforms, thereby improving user experience and security.

The Role of Federated Identity in Modern Authentication

Federated Identity enables users to access multiple systems across organizations using a single set of credentials managed by a trusted identity provider, streamlining authentication while maintaining security. Unlike traditional Single Sign-On (SSO), which typically operates within a single domain or organization, Federated Identity facilitates cross-domain trust and interoperability through standards like SAML, OAuth, and OpenID Connect. This approach is critical in modern authentication frameworks where seamless secure access to diverse cloud services and partner applications is essential for user experience and enterprise security.

Security Benefits and Risks: SSO vs Federated Identity

Single Sign-On (SSO) streamlines user authentication by allowing access to multiple applications with one set of credentials, reducing password fatigue and lowering the risk of weak passwords. Federated Identity enhances security by enabling cross-domain authentication, allowing organizations to maintain control over user credentials while facilitating seamless access across different security realms. However, both SSO and Federated Identity introduce risks such as potential single points of failure and increased impact of compromised credentials, necessitating robust multi-factor authentication and continuous monitoring to mitigate security vulnerabilities.

Use Cases: When to Choose SSO or Federated Identity

Single Sign-On (SSO) is ideal for organizations requiring streamlined access within a single domain or closely related applications, enhancing user convenience and reducing password fatigue. Federated Identity suits enterprises needing secure, cross-domain authentication with external partners or multiple organizations, enabling users to access resources across diverse systems without multiple credentials. Choose SSO for internal environments prioritizing simplicity and Federated Identity when interoperability and trust management across distinct security domains are critical.

Implementation Challenges and Best Practices

Implementing Single Sign-On (SSO) often faces challenges such as integration complexity with diverse applications and securing token exchanges, while Federated Identity introduces difficulties in establishing trust frameworks and ensuring consistent attribute mapping across different identity providers. Best practices include employing standardized protocols like SAML or OAuth, rigorous security assessments, and maintaining comprehensive audit trails to enhance both SSO and Federated Identity deployments. Organizations should also foster collaboration between identity providers and service providers to address interoperability and policy alignment effectively.

Future Trends in Identity Management Systems

Future trends in identity management systems emphasize the convergence of Single Sign-On (SSO) and Federated Identity technologies to enhance seamless user experience and security. Advances in decentralized identity frameworks and blockchain integration are driving the evolution of federated models, enabling more control over personal data and improved interoperability across multiple platforms. Artificial intelligence and machine learning are increasingly incorporated to detect anomalies and automate adaptive authentication, setting new standards for identity verification in complex ecosystems.

Single Sign-On (SSO) Infographic

Federated Identity vs Single Sign-On (SSO) in Technology - What is The Difference?


About the author. JK Torgesen is a seasoned author renowned for distilling complex and trending concepts into clear, accessible language for readers of all backgrounds. With years of experience as a writer and educator, Torgesen has developed a reputation for making challenging topics understandable and engaging.

Disclaimer.
The information provided in this document is for general informational purposes only and is not guaranteed to be complete. While we strive to ensure the accuracy of the content, we cannot guarantee that the details mentioned are up-to-date or applicable to all scenarios. Topics about Single Sign-On (SSO) are subject to change from time to time.

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