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Federated Identity Management vs. Single Sign-On: What's the Difference?

StrongDM Team
Written by
Dynamic Access Management platform
Fazila Malik
Reviewed by
Product Marketing Manager
Last updated on: June 28, 2023

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In today's digital world, identity management has become increasingly important, especially with the proliferation of online services and applications. Single sign-on (SSO) and federated identity management (FIM) are two popular methods of identity management that are commonly used to simplify authentication and authorization processes. However, while they may seem similar at first glance, there are significant differences between the two approaches. This article will delve into the similarities and differences between SSO and FIM, and explore some of the benefits and drawbacks of each method.

Understanding Identity Management

Before we compare SSO and FIM, it is important to understand what identity management is all about. In simple terms, identity management involves ensuring that users are who they say they are, and that they have the right permissions to access specific resources or services. This might involve authenticating users based on their credentials, such as a username and password, or using more advanced authentication methods like multi-factor authentication. Additionally, identity management systems also control user permissions, limiting or expanding their access based on their roles and responsibilities within an organization.

What is Identity Management?

Identity management is the process of managing user identities and permissions across a variety of systems and applications. This is done through a combination of authentication and authorization processes, which help to keep data and applications secure. Identity management systems help organizations to prevent unauthorized access to their resources, prevent data breaches, and monitor access to sensitive information.

The Importance of Identity Management in Today's Digital World

As businesses increasingly move online, the importance of identity management becomes ever more critical. With more applications, platforms, and services available than ever before, it is essential that organizations can verify the identities of their users quickly and accurately. Identity management helps to prevent fraud, identity theft, and other security threats, which can have serious financial and reputational repercussions for businesses.

Identity management is also important for compliance with regulations like GDPR, HIPAA, and PCI DSS, which require organizations to protect user data and ensure that only authorized personnel have access to sensitive information. By implementing an identity management system, organizations can demonstrate their commitment to data security and compliance with these regulations.

In addition to security and compliance benefits, identity management can also improve the user experience. By enabling users to access multiple systems and applications with a single set of credentials, identity management systems simplify the login process and reduce the need for users to remember multiple usernames and passwords. This can lead to increased productivity and user satisfaction.

Identity management systems can also help organizations to manage user access more efficiently. By automating the process of granting and revoking access, identity management systems can reduce the workload on IT staff and ensure that access is granted or revoked in a timely manner. This can help to prevent security incidents caused by human error or oversight.

Overall, identity management is a critical component of any organization's security and compliance strategy. By implementing an identity management system, organizations can protect their data, comply with regulations, and improve the user experience, all while reducing the workload on IT staff.

The Concept of Single Sign-On (SSO)

Single sign-on is a method of identity management that allows users to log in to multiple applications or systems using a single set of credentials. This means that users do not need to remember multiple usernames and passwords, reducing the risk of password fatigue and simplifying the login process. SSO is typically implemented using a centralized authentication system, which authenticates users once and then securely shares that authentication with other systems and applications.

Defining Single Sign-On

Single sign-on is a way of centralizing authentication and creating a seamless login experience for users. This means that users only need to authenticate once, and then they can access multiple applications and services without having to log in again. SSO works by using a shared authentication system which authenticates the user, and then passes that authentication on to other applications or services that the user accesses.

One of the key features of SSO is its ability to provide a seamless login experience for users. This is particularly important in scenarios where users need to access multiple applications or services. With SSO, users can log in once and then access all of their applications without having to remember multiple usernames and passwords.

Another important aspect of SSO is its ability to improve security. By centralizing authentication, SSO allows organizations to enforce strong password policies and monitor user credential usage. This can help to reduce the risk of data breaches and other security incidents.

Benefits of Implementing SSO

The benefits of implementing SSO are numerous. In addition to reducing password fatigue and simplifying the login process, SSO also helps to improve security. By centralizing authentication, SSO allows organizations to enforce strong password policies and monitor user credential usage. It also reduces the risk of rogue applications being introduced into the network, as all authentication is managed centrally.

Another benefit of SSO is its ability to improve productivity. With SSO, users can log in once and then access all of their applications without having to remember multiple usernames and passwords. This can help to reduce the time and effort required to log in to different applications, allowing users to focus on their work.

Finally, SSO can also help to reduce costs. By reducing the number of passwords that users need to remember, organizations can reduce the amount of time and resources required to manage user accounts and passwords.

Common SSO Use Cases

SSO can be used in a variety of different scenarios, from corporate networks to online applications. One of the most common use cases is for cloud applications, where users need to access multiple applications from a single provider. SSO can be used to provide a convenient login experience for users, while also improving security by centralizing authentication.

Another common use case for SSO is in enterprise environments, where users need to access multiple applications and systems. SSO can be used to create a seamless login experience for users, while also improving security and reducing the risk of data breaches.

Finally, SSO can also be used in consumer-facing applications, such as social media platforms or online marketplaces. By providing a convenient and secure login experience, SSO can help to improve user engagement and retention.

Federated Identity Management (FIM) Explained

Federated identity management (FIM) is a powerful tool that is commonly used in modern organizations to manage user credentials and permissions. FIM involves the sharing of user credentials between different organizations, allowing users to access resources across different organizational boundaries. This means that users can log in to multiple applications and services using a single set of credentials, even if those services are provided by different organizations.

FIM is a complex process that involves the creation of trust relationships between different organizations. These relationships allow for the secure sharing of authentication data, which helps to reduce the need for users to maintain multiple credentials, and simplifies the login process for users who need to access resources across different organizations.

What is Federated Identity Management?

Federated identity management is the process of sharing user credentials and permissions between different organizations. This is done by creating trust relationships between the organizations, which allows for the secure sharing of authentication data. FIM helps to reduce the need for users to maintain multiple credentials, and simplifies the login process for users who need to access resources across different organizations.

The use of FIM has become increasingly common in recent years as organizations have become more globalized and the need for collaboration across different organizations has increased. FIM allows organizations to work together more effectively, while also reducing the burden on users who have to remember multiple credentials for different applications and services.

How FIM Works

FIM works by creating trust relationships between different organizations, which allows them to share authentication data. Typically, this involves the use of a trusted third-party identity provider, which manages user authentication across different organizations. When a user tries to log in to an application or service that is provided by another organization, their authentication request is routed to the identity provider, which then authenticates the user and passes that authentication back to the requesting organization.

This process is highly secure, as the identity provider acts as a trusted intermediary between the different organizations. This means that user credentials are never shared directly between organizations, which helps to prevent unauthorized access to sensitive data.

Advantages of FIM in a Globalized World

In a globalized world, federated identity management helps to simplify the process of accessing resources across different organizations and geographic regions. It allows organizations to collaborate more effectively, while also reducing the burden on users who have to remember multiple credentials for different applications and services. Additionally, FIM can help to improve security by centralizing authentication and allowing organizations to monitor authentication usage across different systems and applications.

Overall, FIM is a powerful tool that can help organizations to work together more effectively and securely. By simplifying the login process and reducing the need for users to maintain multiple credentials, FIM can help to improve productivity and reduce the risk of security breaches.

Key Differences Between SSO and FIM

While both SSO and FIM share some similarities, there are also significant differences between the two approaches. Understanding the differences between SSO and FIM is essential for organizations looking to implement an effective identity management system.

Authentication and Authorization

One of the key differences between SSO and FIM is the way that they handle authentication and authorization. SSO typically uses a centralized authentication system to authenticate users, and then shares that authentication across different systems and applications. FIM, on the other hand, allows for the sharing of user credentials across different organizations, which requires trust relationships to be established between the organizations.

Scope and Scale

Another difference between SSO and FIM is their scope and scale. SSO is typically used within a single organization or network, while FIM is often used for cross-organizational identity management. This means that FIM tends to be used on a larger scale, and may involve more complex trust relationships between organizations.

Security Considerations

Finally, security considerations are also an important difference between SSO and FIM. While both approaches can help to improve security, FIM may introduce additional risks related to the sharing of user credentials across different organizations. SSO, on the other hand, can help to centralize authentication and improve security by enforcing strong password policies and monitoring authentication usage.

Implementation and Integration

Finally, implementing either SSO or FIM can be technically challenging, requiring careful planning and implementation. It is important to consider factors such as compatibility with existing systems, scalability, and support for different authentication protocols when implementing an identity management system.

Conclusion

In conclusion, both single sign-on and federated identity management are effective methods of identity management that can help organizations to simplify authentication and improve security. However, there are significant differences between the two approaches, particularly related to authentication and authorization, scope and scale, and security considerations. By understanding the similarities and differences between SSO and FIM, organizations can select the most effective identity management solution for their needs, whether that involves centralizing authentication within their organization or sharing user credentials across different organizations.


About the Author

, Dynamic Access Management platform, StrongDM puts people first by giving technical staff a direct route to the critical infrastructure they need to be their most productive.

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A Policy Enforcement Point (PEP) is a component in a security framework that enforces access control policies. It regulates and monitors access to...

What is Access Discovery?

Access Discovery is the process of identifying and verifying available pathways to digital resources or information within a system or network. It...

What Is Active Directory (AD) Bridging?

Active Directory (AD) bridging lets users log into non-Windows systems with their Microsoft Active Directory account credentials. This extends AD benefits...

What Is an Open Policy Agent (OPA)?

Open Policy Agent (OPA) is an open-source, general-purpose policy engine that enables policy-as-code across diverse software stacks. It provides a unified...

What Is Continuous Authorization?

Continuous Authorization is a security concept ensuring ongoing validation of users' access rights within a system. Employing real-time session monitoring...

What is Continuous Monitoring?

What is Continuous Monitoring? Continuous monitoring is a systematic and ongoing process that uses automated tools and technologies to monitor the...

What is Customer Identity Access Management (CIAM)?

Customer Identity Access Management (CIAM) is a specialized branch of identity and access management designed to facilitate secure and seamless customer...

What is Cyber Threat Hunting?

Threat hunting is the cyber defense practice of proactively searching for threats within a network. Threat hunters look for threats that may have evaded...

What Is Disaster Recovery Policy (DRP)?

Disaster Recovery Policy is a strategic framework outlining procedures and resources to swiftly restore essential business functions after a disruptive...

What Is eXtensible Access Control Markup Language (XACML)?

eXtensible Access Control Markup Language (XACML) is a standard for specifying and exchanging access control policies in computer systems. It provides a...

What Is Fine-Grain Access Controls?

Fine-grain access controls are a type of access control that enables granular access to systems, applications, and data. Access is based on specific...

What Is Group-Based Access Control (GBAC)?

Group-Based Access Control (GBAC) is a security model that regulates access to resources by assigning permissions based on user group membership. It...

What Is Identity Fabric?

Identity Fabric refers to an integrated set of identity and access management services that provide seamless and secure user access across a diverse range...

What Is NoSQL Injection? Examples, Prevention, and More

What is NoSQL Injection? NoSQL Injection is a type of injection attack that exploits vulnerabilities in NoSQL databases by injecting malicious code into...

What Is Policy-as-Code? Tools, Examples, Implementation

Policy-as-Code refers to the practice of managing and implementing policy decisions through code, making them enforceable and verifiable within IT...

What Is Privileged Identity Management (PIM)?

Privileged identity management is the process companies use to manage which privileged users—including human users and machine users—have access to which...

What is Remote Desktop Protocol (RDP)?

What is Remote Desktop Protocol (RDP)? Remote Desktop Protocol (RDP) is a proprietary protocol developed by Microsoft that allows users to remotely...

What Is Segregation of Duties (SoD)?

Segregation of Duties (SoD) is a risk management principle that ensures critical tasks are divided among different individuals to prevent conflicts of...

What is Vendor Privileged Access Management (VPAM)?

Vendor Privileged Access Management (VPAM) is a cybersecurity strategy that focuses on controlling and securing third-party access to an organization's...

What Is Zero Trust Data Protection?

Zero Trust Data Protection is a security framework that assumes no inherent trust, requiring verification from anyone trying to access data, regardless of...

Z
Zero Trust

Zero Trust is a modern security model founded on the design principle “Never trust, always verify.” It requires all devices and users, regardless of...

Zero Trust vs. the Principle of Least Privilege: What's the Differences?

As cyber attacks become more advanced and frequent, organizations are realizing the importance of enhancing their cybersecurity strategies. Two approaches...

Zombie Accounts

Zombie accounts: forgotten accounts that open the door to bad actors looking to insert malware, steal data, and damage your internal systems.

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