Federated identity vs. single sign-on (SSO): Key differences
In the modern workplace, employees often juggle multiple applications and services to get work done. The constant need to remember and enter different login credentials for each system not only hinders productivity but also poses security risks.
This is where single sign-on (SSO) and federated identity management (FIM) come into play, offering solutions to streamline authentication and access control. Learn how these two approaches compare and which one best fits your security needs.
What is single sign-on (SSO)?
SSO is an authentication method that allows users to access multiple applications with a single set of login credentials. Instead of requiring separate usernames and passwords for each system, SSO enables users to authenticate once and gain access to all the resources they need, often across different domains or even organizations. The goal is to simplify the user experience, reduce password fatigue, and minimize the risk of weak or reused passwords that could compromise security.
How does single sign-on work?
The SSO process typically involves the following steps:
- The user enters their login credentials (username, password, and possibly a second factor like a one-time code) into their organization's SSO portal.
- The SSO system also known as the identity provider (IdP) verifies these credentials against the organization's user directory.
- Once verified, the SSO system generates a secure token (such as a SAML assertion or OAuth token) that authorizes the user to access other services without having to log in again.
Behind the scenes, the SSO system and target applications communicate via secure protocols like SAML, OpenID Connect, or OAuth or to exchange identity information and authorization tokens.
What is federated identity management?
Federated identity management (FIM) encompasses a broader set of identity services, including authentication, authorization, and user provisioning across different organizations. Federated SSO, a key component of FIM, enables users to access resources across multiple autonomous security domains—it's like having a passport that allows you to travel seamlessly between different countries without the hassle of obtaining separate visas for each destination.
In a federated model, different organizations establish trust relationships and agree on standards to share and accept identity information from each other. This enables scenarios where a user with an account in one organization can access services provided by a partner organization without the need for separate registration or login.
For example, an employee can use their single corporate login to access internal applications, cloud services like Microsoft 365, and third-party tools like Salesforce—all with that one set of credentials. Federated SSO also uses open standards like SAML, OAuth, and OIDC to securely exchange authentication data between the identity provider and SPs (service provider).
How does federated SSO work?
Federated SSO involves the following key steps:
- IdP and SP setup: The participating organizations establish a trust relationship by exchanging metadata and certificates. They define the identity attributes to be shared and the authentication requirements.
- User authentication: When a user attempts to access a federated service, they are redirected to their organization's IdP to authenticate. The IdP validates the user's credentials and generates an identity assertion or token containing the necessary attributes.
- Token exchange: The IdP sends the identity token to the SP via the user's browser or directly through a secure backchannel, depending on the protocol used (e.g., SAML, OAuth, or OpenID Connect).
- Access grant: If the token is valid and the user is authorized, the SP grants access to the requested resource without prompting for additional login. The user can now seamlessly navigate between federated services.
- Single logout: When the user initiates a logout in one federated system, the IdP can propagate the logout request to all connected SPs to ensure a consistent session termination across domains.
5 benefits of single sign-on
A robust SSO solution can provide several key benefits for organizations:
1. Streamlined user experience
SSO eliminates the hassle of remembering and entering different credentials for each application, reducing password fatigue and improving employee experience.
2. Enhanced security
By centralizing authentication, SSO minimizes the risk of weak, reused, or stolen passwords. It enables organizations to enforce strong password policies and implement multi-factor authentication consistently across all connected systems.
3. Increased productivity
With SSO, users spend less time logging in and out of different applications, allowing them to focus on their core tasks. IT teams also benefit from reduced password reset requests and simplified user provisioning.
4. Centralized access control
SSO provides a single point of control for managing user access rights and permissions. IT administrators can define granular access policies based on user roles, groups, or attributes, ensuring that users have access only to the resources they need.
5. Reduced IT overhead
By minimizing the time spent on password-related support and user management, SSO can significantly reduce IT operational costs. It lowers the risk of security breaches that can result in financial losses and enables real-time synchronization of user accounts across multiple systems, minimizing the risk of orphaned or outdated accounts.
4 benefits of federated identity management
1. Seamless cross-domain access
Federated SSO enables users to access resources across different organizations or security domains without the need for separate accounts or logins. This is particularly useful for partnerships, collaborations, and supply chain interactions.
2. Scalable trust relationships
Federated identity allows organizations to establish trust once and extend it to multiple services and partners. This scalability simplifies the integration of new applications and reduces the overhead of managing individual trust relationships.
3. Increased efficiency
By eliminating the need for users to maintain separate accounts and passwords for each external service, federated SSO streamlines the user experience and reduces administrative burden. It also enables automated user provisioning and deprovisioning across federated systems.
4. Enhanced privacy and control
Federated identity management gives users more control over their personal information. They can selectively share identity attributes with service providers based on the established trust framework and privacy policies.
Federated identity vs. single sign-on (SSO)
While federated identity management and SSO share the goal of simplifying authentication and access management, there are some key differences:
1. Scope
Traditional SSO focuses on providing unified authentication within a single organization or security domain. Federated SSO extends this capability across multiple organizations or domains, enabling users to access resources seamlessly beyond their home network.
2. Trust relationships
In a federated model, trust is established between the identity provider and service providers through the exchange of metadata (which includes certificates, endpoints, and public keys) and agreements on authentication and authorization policies. Traditional SSO typically relies on a centralized directory or identity store within the organization.
3. User experience
Federated SSO provides a more seamless experience for users accessing resources across different domains or organizations. Traditional SSO is typically limited to a single sign-on experience within the organization's own applications and services.
4. Management complexity
Implementing and managing federated identity requires coordination and agreement between multiple parties, which can introduce additional complexity compared to traditional SSO within a single organization. Federated SSO involves managing trust relationships, defining attribute mappings, and ensuring compatibility between different systems.
Federated identity vs. SSO: Which is best?
The choice between traditional SSO and FIM depends on the specific needs and requirements of the organization:
Traditional SSO is suitable for organizations that only need to manage access to applications within a single security domain. It provides a unified login experience but is limited to applications under the direct control of the organization's identity provider.
FIM extends SSO capabilities by enabling secure authentication across different security domains. This makes it ideal for modern organizations that need to:
- Access cloud-based services and SaaS applications
- Enable B2B collaboration with partners and suppliers
- Support remote work with various third-party tools
- Manage complex multi-tenant environments
Most organizations today benefit from implementing federated SSO given the widespread use of cloud services and cross-domain authentication requirements.
Rippling: The all-in-one solution for identity management
Rippling unifies identity and access management through a single platform that combines HR and identity provider capabilities. By integrating its IdP with MDM and HR systems, Rippling enables both basic security features and advanced authentication measures without complex integrations.
The platform provides essential features like SSO and MFA enforcement, while also enabling sophisticated security through its unified infrastructure. Rippling's behavioral detection can identify suspicious login patterns based on factors like location and time—for instance, flagging impossible travel scenarios while allowing reasonable movement between cities.
For day-to-day operations, Rippling's built-in password manager (RPass) gives employees centralized access to their apps while maintaining security standards. The platform automates the entire user lifecycle, from setting up accounts during onboarding to revoking access during offboarding, all with customizable approval workflows.
Advanced security features include device trust enforcement, passkeys support, and conditional access policies that can be based on multiple factors like device status or location. The platform also provides comprehensive activity logs for security monitoring and compliance, with visibility into logins, user actions, and security events across all integrated systems.
With support for over 600 pre-built integrations and custom SCIM/SAML capabilities, Rippling can secure access to virtually any business application. The platform is continually evolving, with password federation coming soon to enhance cross-domain authentication capabilities. By leveraging Rippling's identity management capabilities, organizations can enhance security, improve user experience, and streamline IT operations.
Federated SSO FAQs
Are there any challenges in implementing federated SSO?
Implementing federated SSO involves both technical and organizational hurdles. The main challenges include setting up trust relationships between systems, managing user data across platforms, and maintaining consistent security standards. Organizations should carefully plan their implementation and select identity providers that match their specific needs.
Can federated SSO and traditional SSO be used together?
While federated SSO typically serves as the comprehensive solution for modern authentication needs across both internal and external services, some organizations may still use traditional SSO for purely internal applications. A hybrid approach is common, especially in organizations with diverse security requirements.
Does federated SSO support third-party applications?
Yes, federated SSO works with third-party applications that use standard protocols like SAML, OAuth, or OpenID Connect. Most modern cloud services and business applications already support these protocols, making them easy to integrate into your federated authentication system.
What is an example of federated SSO?
A practical example of federated SSO is when an organization's employees access third-party applications. When you use your company login to access external software like Salesforce or Workday, you're using federated SSO. Your organization (the identity provider) verifies who you are, and these external applications (service providers) trust and accept this verification to grant you access.
This blog is based on information available to Rippling as of January 21, 2025.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
