Single Sign-on vs Federated Identity Management in Technology - What is The Difference?

Last Updated Apr 16, 2025

Federated Identity Management enables seamless access across multiple systems using a single set of credentials, enhancing security and user convenience. This approach reduces password fatigue and streamlines authentication processes, making it ideal for businesses and service providers looking to improve user experience while maintaining robust control. Dive into the rest of the article to discover how Federated Identity Management can transform Your digital authentication strategy.

Table of Comparison

Feature Federated Identity Management (FIM) Single Sign-On (SSO)
Definition Enables identity sharing across multiple organizations or domains. Allows users to access multiple applications with one login within the same organization.
Scope Cross-organizational and cross-domain identity management. Within one organization or domain.
Authentication Uses standards like SAML, OAuth, OpenID Connect for trusted inter-domain authentication. Centralized authentication server for seamless access across applications.
User Experience Single credentials for multiple organizations. Single login for multiple applications within one organization.
Security Decentralized trust model requiring strong identity federation agreements. Centralized security policy and session management.
Use Cases Partner ecosystems, B2B transactions, cross-domain collaboration. Enterprise internal applications, intranet portals, cloud services.
Examples Microsoft Azure AD B2B, Google Identity Federation. Okta, Microsoft Active Directory Federation Services (ADFS).

Introduction to Federated Identity Management and Single Sign-On

Federated Identity Management (FIM) enables multiple organizations to share and trust identity information, allowing users to access services across different domains without needing separate credentials for each. Single Sign-On (SSO) provides users with one set of login credentials to access multiple applications within a single organization or domain, streamlining authentication processes. Both FIM and SSO enhance user experience and security by reducing password fatigue and improving access control across systems.

Defining Federated Identity Management

Federated Identity Management (FIM) enables users to access multiple independent systems using a single set of credentials managed across cooperating organizations, enhancing security and user convenience. Unlike Single Sign-On (SSO), which provides seamless access within a single domain or organization, FIM facilitates authentication and authorization across different security domains by establishing trust relationships. Key technologies in FIM include Security Assertion Markup Language (SAML) and OAuth, which enable secure sharing of identity attributes and access rights between entities.

Understanding Single Sign-On Solutions

Single Sign-On (SSO) solutions enable users to access multiple applications with a single set of credentials, enhancing user experience and reducing password fatigue. Unlike Federated Identity Management, which shares authentication data across trusted domains, SSO focuses on streamlining access within a centralized authentication system. Implementing SSO improves security by minimizing password exposure and simplifies IT management through unified user access control.

Key Differences Between FIM and SSO

Federated Identity Management (FIM) enables users to access multiple systems across different organizations using a single digital identity, while Single Sign-On (SSO) allows users to authenticate once and gain access to multiple applications within the same organization or domain. FIM emphasizes cross-domain authentication through federation protocols such as SAML, OAuth, or OpenID Connect, whereas SSO focuses on simplifying access within a single trust boundary without necessarily sharing identity data between organizations. Security in FIM relies on trust frameworks and federated identity providers, contrasting with SSO's centralized authentication system that manages user sessions internally.

How Federated Identity Management Works

Federated Identity Management (FIM) operates by enabling multiple organizations to share and accept authentication credentials through trusted identity providers, allowing users to access various systems without needing separate logins for each service. It uses protocols like SAML, OAuth, and OpenID Connect to exchange identity information securely between domains, ensuring seamless access across organizational boundaries. Unlike Single Sign-On (SSO) which centralizes authentication within one domain, FIM extends identity verification across multiple independent entities, enhancing cross-domain interoperability and user convenience.

Single Sign-On: Mechanism and Use Cases

Single Sign-On (SSO) enables users to access multiple applications with one set of login credentials, streamlining authentication processes and improving user experience. Mechanisms behind SSO include protocols like SAML, OAuth, and OpenID Connect, which facilitate secure token exchange and identity verification across different platforms. Use cases for SSO span enterprise environments, cloud services, and consumer applications, reducing password fatigue and enhancing security by minimizing credential exposure.

Security Implications: FIM vs SSO

Federated Identity Management (FIM) enhances security by enabling multiple organizations to share authentication credentials while maintaining individual domain control, reducing the need for multiple passwords and minimizing attack surfaces from credential reuse. Single Sign-On (SSO) simplifies user access by allowing one set of credentials to access multiple internal systems, but it can create a single point of failure if compromised, increasing risk without robust multi-factor authentication. FIM's distributed trust model provides stronger cross-domain security boundaries, whereas SSO often depends on centralized authentication systems vulnerable to targeted attacks.

Benefits of Federated Identity Management

Federated Identity Management (FIM) enhances security by enabling users to access multiple applications across different organizations using a single set of credentials, reducing the risk of password fatigue and breaches. It improves user experience by allowing seamless authentication without repeated logins, supporting cross-domain access and collaboration. FIM also simplifies IT administration by centralizing identity management, decreasing redundancy, and facilitating compliance with regulatory standards.

Advantages and Limitations of Single Sign-On

Single Sign-On (SSO) streamlines user access by enabling authentication across multiple applications with a single set of credentials, significantly enhancing user convenience and reducing password fatigue. It improves security by centralizing authentication and enabling better monitoring and control, though it presents risks if the central authentication system is compromised. Limitations include dependency on the SSO provider's availability and potential challenges integrating with diverse or legacy systems, which can impact system interoperability and user experience.

Choosing the Best Identity Solution for Your Organization

Federated Identity Management links multiple organizations' identity systems, enabling users to access resources across domains using one identity, ideal for collaborations and partnerships requiring interoperability. Single Sign-on (SSO) grants users access to multiple applications within a single organization through one set of credentials, enhancing internal user convenience and security. Selecting the best identity solution depends on your organization's scope, with Federated Identity suited for cross-entity access and SSO optimized for centralized internal access management.

Federated Identity Management Infographic

Single Sign-on vs Federated Identity Management 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 Federated Identity Management are subject to change from time to time.

Comments

No comment yet