
Although the terms Federated Identity Management (FIM) and Single Sign-On (SSO) are frequently used interchangeably, they are not similar. Single sign-on enables access to apps and resources within a single domain. Federated identity management enables Single Sign-On (SSO) into applications across multiple domains or organizations.

### What is Federated Identity Management (FIM)? {#what-is-federated-identity-management-fim}
**Federated Identity Management (FIM)** is a structure between organizations or organizational domains that allows users to access multiple networks with the same credentials (digital identity). Simply put, FIM is a single login, multiple-access method. For example, a domain can refer to a business unit, a smaller subsidiary, or a small company (small, medium, or large).  

For FIM to function properly, all domains involved must have mutual trust. Each domain has its own identity management system. On the other hand, all interconnected domains are linked to a centralized third-party platform that stores and manages user access credentials and establishes the trust relationships required for FIM to function. We’re talking about a third-party platform, also known as an [Identity Provider](https://www.miniorange.in/blog/what-is-an-identity-provider-idp/) or [Identity Broker](https://www.miniorange.in/products/identity-broker-service). This Identity Provider/Broker controls access to a variety of service providers (here domain). An FIM structure does not have to have only one Identity Provider. The Federated Identity Management arrangement can be formed across the enterprise by several Identity Providers/Brokers.  

Federated Identity Management is a service that connects users’ identities across several domains. Users will only need to authenticate on one domain once these two domains are federated. The reason for this is that the FIM system includes a second security domain that trusts the users’ first (Primary) domain authentication and grants them unrestricted access.  

OpenID, OpenAuthorization, and Shibboleth are part of the Federated Identity Management (FIM) system, which is based on the Organization for the Advancement of Structured Information Standards like SAML (Security Assertion Markup Language).

### How does federated identity management work? {#how-does-federated-identity-management-work}
FIM works in a way, considering there are three security Domains (A, B, and C) and a unified Identity provider integrated with an FIM structure. User credentials are stored and managed by the Identity Provider, which is the home domain. Now when a particular user tries to log into any of the service provider Domain services (A,B,C), they don’t have to provide credentials to the service provider (A,B,C). Instead, the Identity provider authenticates the user, and all service Providers trust IDP to validate these credentials and provide them access.

 

![Federated Identity Management (FIM)](/blog/assets/2023/federated-identity-management-fim.webp)

 

The process of FIM here is possible because FIM partners (A,B,C) send each other authorization messages. These messages can be transferred using [SAML](https://www.miniorange.in/single-sign-on-(sso)-saml-integration) or any similar sort of Extensible Markup Language Standard.

 

### What are common federated identity management use cases? {#what-are-common-federated-identity-management-use-cases}
When administering applications that require access to resources across various security domains, the requirement for FIM arises.

Here are a few examples of how FIM might be used:

- New users are added to the system after a merger or acquisition. 
- External partners or vendors want access to organizational resources.
- Users from a commercial identity provider or a government agency.
- If the user’s credentials come from a national identity provider.
 

### What is SSO? {#what-is-sso}
 
[Single Sign-On (SSO)](https://www.miniorange.in/blog/what-is-single-sign-on-sso/) is an authentication process in which a user is provided access to multiple applications and/or websites by using only a single set of login credentials (such as username and password). This prevents the need for the user to log separately into the different applications.  

The user credentials and other identifying information are stored and managed by a centralized system called Identity Provider (IdP). The Identity Provider is a trusted system that provides access to other websites and applications.  

Single Sign-On (SSO) based authentication systems are commonly used in enterprise environments where employees require access to multiple applications/websites of their organizations. In this scenario, the Single Sign-On service provider uses the organization’s directory, such as Microsoft Active Directory, [Azure Active Directory](https://www.miniorange.in/blog/what-is-azure-active-directory/), or a directory provided by the Single Sign-On solution itself for authenticating users and providing access to the various applications/websites.

 

### What is the difference between SSO and FIM? {#what-is-the-difference-between-sso-and-fim}
Single Sign-On (SSO) is an important component of FIM, but it is not the same thing as FIM. Although there is no necessity for Federated Identity Management when configuring SSO, FIM significantly relies on SSO implementation to authenticate users across domains.  

The main distinction between SSO and FIM is that whereas FIM provides single access to several applications across various organizations, SSO is meant to authenticate a single credential across diverse systems within one organization.  

SSO allows users to access numerous systems inside a single organization using a single set of login credentials. SSO is a token-based authentication system, which means that instead of a password, users are identified by a token.  

The Federated Identity Management System allows users to access applications, services, and networks that are federated in a group using the same credentials. SSO allows a user to log into numerous apps within the same organization with a single set of credentials. FIM, on the other hand, allows users to access many apps and systems across multiple enterprises in a single step.  

Unlike SSO, FIM sends credentials to the FIM system, which is a home domain identity provider, rather than to a web application.

 

### What are the benefits and drawbacks of federated identity management? {#what-are-the-benefits-and-drawbacks-of-federated-identity-management}
FIM (Federated Identity Management) has its own benefits and drawbacks.  


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#### **Benefits of FIM:**
When numerous companies collaborate on a project, FIM makes it simple for everyone involved to exchange and access resources across all domains. It also streamlines the organization’s authentication and authorization process. Integrating FIM does not imply that all federated domain administration will be managed by a single administrator. Each organization’s administrators can still manage access to their own domains. Federated Identity Management System allows a single user to define permissions and access levels across multiple systems in multiple security domains.This streamlines identification and access management operations while reducing their workload.  

FIM also addresses all of the challenges that frequently develop and impede users from quickly gaining access to the resources they demand. Users benefit from the FIM Login system because they can safely access systems across domains without having to log in multiple times. FIM helps users save time, reduce login friction, and increase productivity in an indirect way.  

FIM aids in the simplification of data administration, privacy, and compliance, as well as the reduction of storage costs.  


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#### **Drawbacks of FIM:**
One of the most significant disadvantages of FIM is the cost of implementing and modifying current systems and applications. Another issue that federation members face is that they must develop policies that meet the security needs of all federated members. Negotiation can be difficult and time-consuming in order to reach a final conclusion, as each organization  has its own set of needs and rules.  

Another issue that may arise is that if a participating organization is a member of one or more federations, its policies should reflect each federation’s regulations and criteria.If a corporation joins many federations, this becomes considerably more complicated and time-intensive.

 

### FIM service by miniOrange {#fim-service-by-miniorange}
As one becomes more familiar with FIM technology, the question of which firms provide the finest FIM services emerges. There are many, but choosing the best Federated Identity Management service provider can be difficult.  

So, in order to arrive at a specific conclusion, you must consider a few key factors.  

This includes the following:  

**Flexible Pricing:** Because implementing an FIM can be costly, you should choose a solution that handles pricing based on your needs and requirements.  

**Multiple Structured Information Standards** (SAML, Open ID, etc.) are supported, giving your architecture a lot of flexibility.  

**Technical Support:** Because FIM can get a little complicated at times, you’ll need reliable, fast help if you get stuck in the middle of integration or run into any other issues.  

**Multiple IDP support:** As previously stated, the Federated Identity Management system is all about managing [Identity Providers](https://www.miniorange.in/blog/what-is-an-identity-provider-idp/), thus when choosing a service, make sure the FIM service provider you choose has a good stock of IDP support.  

In light of all of these factors, miniOrange is a top-tier security solution that has been offering [IAM](https://www.miniorange.in/what-is-iam-identity-and-access-management) and Federated Identity Management services for many years.  

If you have any doubts or questions about FIM, How is it Implemented? What will be the cost to implement for your organization? What will the technical implementation look like? Feel free to reach us at idpsupport@xecurify.com. We will help you out in the best way possible.


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### Further Reading {#further-reading}
- [What is Single Sign-On (SSO)?]()
- [What is Federated SSO?]()

Using Federated Identity Management or Identity Federation, authorized users can access multiple applications and domains using a single set of credentials.

Federated Identity Management (FIM): FIM VS Single Sign-On (SSO)


## What is Federated SSO? {#what-is-federated-sso}

**Federated Single Sign-on**, or Federated SSO (also known as Federated Identity Management), is a combination of two terms: Federated, which means across an organization, and SSO, which means Single Sign-On. As it implies, Federated SSO is a service that allows users to login into different applications or websites situated across different domains using a single set of login credentials.

This means that suppose a user in the organization who has to use different services like Zoom, Office 365, Google Workspaces, HR Portal, etc. can access all the services using a single set of login credentials rather than remembering and using a separate login credential for each, as is the case in the traditional scenario. i.e., with one Federated Identity, a user can access all configured services across multiple domains.

## Key Components: Identity Providers (IdPs) and Service Providers (SPs) {#key-components}

In Federated Single Sign-On (SSO), **Identity Providers (IdPs)** and **Service Providers (SPs)** are crucial components:

**1. Identity Providers (IdPs):** These are entities that authenticate users and provide identity information to service providers. Examples include Google, Microsoft, and miniOrange. IdPs manage user credentials and ensure secure authentication.

**2. Service Providers (SPs):** These are applications or services that rely on IdPs for user authentication. SPs trust the IdP to verify user identities and grant access to their resources. Examples include Salesforce, Slack, and Atlassian.

In a Federated SSO setup, the IdP authenticates the user and sends an assertion (usually via SAML or OAuth) to the SP, which then grants access to the user without requiring separate login credentials.

This setup enhances security by centralizing authentication and improves the user experience by reducing the need for multiple logins.

## Comparison of Federated SSO with Standard SSO {#federated-sso-vs-standard-sso}

A common misconception about Federated SSO is that SSO and federated SSO are one and the same thing. SSO is a service that allows users to login into multiple applications (on the same domain) using a single set of login credentials, while Federated SSO is a service that allows users to SSO in applications across multiple domains.

In other words, using SSO, users can login into multiple applications on the same domain using a single set of login credentials (like logging in to YouTube, Drive, and Sheets using Google/Gmail credentials), while using federated SSO, users can login into multiple applications on a different domain (like logging in to Zoom using Google/Gmail credentials).

Let us understand this with the help of an example:

John is an employee at company XYZ and wants to access all the applications he needs to complete his work in the company with a single login credential. As these applications are from different vendors, each is on a different domain, and hence traditional SSO implementation cannot fulfill his requirements. Federated SSO overcomes this limitation of SSO, allowing users to SSO into applications across different domains using a single set of login credentials.

## Federated SSO vs SSO

| Aspect | Federated SSO | SSO |
|--------|---------------|-----|
| Definition | Authentication across multiple, independent systems | Authentication for multiple applications within a single organization |
| Scope | Cross-domain, inter-organizational | Intra-organizational |
| Standards | SAML, OAuth, OpenID Connect | Proprietary or standard-based |
| Identity Provider | External, trusted third-party | Internal to the organization |
| User Directory | Distributed across organizations | Centralized within the organization |
| Scalability | Highly scalable across organizations | Limited to organizational boundaries |
| Complexity | Higher due to multiple trust relationships | Lower, simpler implementation |
| User Experience | Seamless access across different organizations | Seamless access within the organization |
| Security | Enhanced due to the distributed architecture | Centralized, potential single point of failure |
| Compliance | Facilitates cross-organizational compliance | Simplifies internal compliance. |

## When Should I Choose Federated SSO over SSO? {#when-should-i-choose-federated-sso-over-sso}

Choose Federated SSO over SSO when:

- **Multiple Domains or Organizations:** You need to provide seamless access across multiple domains or organizations. Federated SSO allows users to authenticate once and access resources across different entities.
- **Third-Party Applications:** You need to integrate with various third-party applications and services. Federated SSO supports interoperability between different identity providers and service providers.
- **Enhanced Security:** You require better security by keeping authentication within your own infrastructure. Federated SSO reduces risks by not relying on third-party authentication systems.

Choose SSO When:

- **Single Domain:** You only need to manage access within a single domain or organization.
- **Simpler Setup:** You prefer a simpler setup without the need for complex federated identity management.
- **Internal Applications:** You are primarily dealing with internal applications and services.

Federated SSO is ideal for complex, multi-domain environments with a need for enhanced security and third-party integrations, while SSO is suitable for simpler, single-domain scenarios.

## How Does Federated SSO Work? {#how-does-federated-sso-work}

Like SSO, Federated SSO supports all the authentication protocols, like SAML, OAuth, and OIDC, to authenticate users into applications. Here, trust is established between the identity provider (a system that stores and verifies user identity) and the service provider (the system the user wants to utilize) using metadata and certificate configurations. Once trust is established, users can login to service providers using their identity provider credentials.

A user can Single Sign-On into applications either by:

- **IDP initiated SSO:** Sign into the IDP application and then login to company applications.
- **SP initiated SSO:** Login to Company application and then signed into IDP application after auto-redirect.

In either case, once users use their login credentials and are authenticated by the IDP application, IDP sends an authentication assertion to SP. Based on the authentication assertion from the IDP, SP logs in the user and allows access to resources.

### Step-by-step Process of How Federated SSO Works {#step-by-step-process-of-how-federated-sso-works}

1\. User attempts to access a service provider (SP).

2\. SP redirects the user to the identity provider (IdP).

3\. User authenticates with the IdP

4\. IdP generates a security assertion (SAML or similar).

5\. IdP sends the assertion to the user's browser

6\. Browser forwards the assertion to the SP

7\. SP validates the assertion

8\. SP grants access to the user

9\. User can now access multiple SPs without re-authenticating.

![Federated SSO workflow](/blog/assets/2023/federated-sso-workflow.webp)

This process allows secure, seamless access across multiple services while maintaining centralized identity management. It reduces password fatigue and improves security by limiting authentication points.

## Common Protocols in Federated SSO {#common-protocols-in-federated-sso}

### 1\. SAML (Security Assertion Markup Language):
- XML-based standard
- Used for enterprise-level SSO
- Supports web-based authentication and authorization
- Ideal for large organizations with complex security requirements

### 2\. OAuth (Open Authorization):
- Token-based authorization framework
- Allows third-party applications to access resources without sharing credentials
- Widely used for API authentication
- Supports mobile and web applications

### 3\. OpenID Connect (OIDC):
- Built on top of OAuth 2.0
- Adds an identity layer for authentication.
- Provides user profile information
- Suitable for both enterprise and consumer-facing applications

Each protocol has its strengths and use cases. SAML is robust for enterprise environments, OAuth excels in API authorization, and OpenID Connect combines authentication with OAuth's authorization capabilities.

## Benefits of Federated SSO for Businesses {#benefits-of-federated-sso-for-business}

- **Increased Efficiency:** This saves a lot of time and increases efficiency.
- **Customer Experience:** For the third-party integrated apps, it makes it easy to login and hence improves the customer experience.
- **Secured:** Federated SSO, or Federated Identity Management, makes sure that you don’t have multiple credentials for different applications, making you vulnerable to threats.
- **Reduced Expenses:** A single sign-on solution reduces costs along with an increase in productivity.

## Who Can Benefit from Federated SSO? {#who-can-benefit-from-federated-sso}

Federated Single Sign-On (SSO) benefits a wide range of entities, including:

1\. **Large enterprises:** Optimize access management across multiple systems and applications.

2\. **Educational institutions:** Simplify access for students and faculty to various academic resources.

3\. **Healthcare organizations:** Ensure secure and efficient access to patient data and medical systems.

4\. **Government agencies:** Manage access across departments while maintaining strict security protocols.

5\. **Multi-national corporations:** Enable seamless access for employees across different geographic locations.

6\. **Cloud service providers:** Offer enhanced security and convenience to their customers.

7\. **Small to medium businesses:** Improve productivity and reduce IT overhead.

8\. **Non-profit organizations:** Refine volunteer and donor management systems.

9\. **B2B companies:** Facilitate secure partner access to shared resources.

10\. **Managed service providers:** Offer value-added identity management services to clients.

Federated SSO can significantly improve security, user experience, and operational efficiency for these entities by centralizing authentication and reducing password-related risks.

## Use Cases for Federated SSO {#use-cases-for-federated-sso}

### 1\. Enterprise Environments:
Federated SSO in enterprise settings streamlines access to multiple cloud applications, enhancing security by centralizing authentication processes. This approach simplifies user management across subsidiaries or partners, creating a more efficient and secure digital ecosystem for large organizations.


### 2\. Finance Sector: 
Federated SSO in the finance sector enhances security and user experience by centralizing authentication for banking institutions, investment firms, insurance companies, financial regulatory bodies, and fintech companies. It streamlines access to various financial services and applications, ensuring compliance with regulations and protecting sensitive data. This approach improves operational efficiency and facilitates secure information sharing and collaboration across the industry.

### 3\. Academic Institutions:
In academia, federated SSO enables seamless access to learning management systems and research databases while facilitating collaboration between universities and research institutions. It also provides a unified system for managing student and faculty access across various campus services, improving both security and user experience.

### 4\. Healthcare Sector: 
For healthcare providers, federated SSO secures access to patient records across multiple facilities, ensuring compliance with regulations like HIPAA. This system is particularly crucial for enabling swift authentication for medical staff in emergency situations, potentially saving critical time in patient care.

### 5\. Government Agencies:
Government implementations of federated SSO facilitate secure information sharing between departments and manage citizen access to various online government services. This approach enhances security for classified information systems, balancing accessibility with stringent security requirements.

### 6\. B2B Partnerships:
In B2B contexts, federated SSO enables secure access to shared resources for partner organizations and simplifies user provisioning and deprovisioning in collaborative projects. This allows businesses to maintain separate identity management systems while still providing seamless authentication for cross-organizational initiatives.

## Federated SSO Implementation {#federated-sso-implemented}

**Key Considerations for Implementing Federated SSO**

Implementing Federated Single Sign-On (SSO) involves several key considerations:

1\. **Identity Providers (IdPs):** Choose reliable IdPs that support industry standards like SAML, OAuth, and OpenID Connect.

2\. **Security Protocols:** Ensure robust encryption and secure token handling to protect user credentials and data.

3\. **User Experience:** Aim for a seamless login experience across different applications and platforms.

4\. **Compliance:** Adhere to regulatory requirements such as GDPR, HIPAA, and other relevant standards.

5\. **Scalability:** Ensure the solution can handle growth in users and applications without performance degradation.

6\. **Interoperability:** Verify compatibility with existing systems and applications.

7\. **Monitoring and Auditing:** Implement continuous monitoring and logging to detect and respond to security incidents.

8\. **User Provisioning:** Automate user provisioning and de-provisioning to maintain accurate access controls.

9\. **Support and Maintenance:** Plan for ongoing support and regular updates to address vulnerabilities and improve functionality.

## Federated SSO Implementation Challenges and Best Practices {#federated-sso-implementation-challenges-and-best-practices}

Implementing Federated Single Sign-On (SSO) can streamline access management, but it comes with its own set of challenges. Here are some common challenges and their solutions:

### 1. **Interoperability Issues**

- **Challenge:** Different systems and applications may use varying protocols and standards, leading to compatibility issues.
- **Solution:** Adopt widely accepted standards like SAML, OAuth, and OpenID Connect. Ensure all systems support these protocols for seamless integration.

### 2. **Security Concerns**
- **Challenge:** Federated SSO can become a single point of failure, making it a prime target for attacks.
- **Solution:** Implement robust security measures such as Multi-Factor Authentication (MFA), regular security audits, and continuous monitoring to detect and mitigate threats.

### 3. **User Experience**
- **Challenge:** Users may face difficulties during the transition to a new SSO system, leading to frustration and decreased productivity.
- **Solution:** Provide comprehensive user training and support. Ensure the SSO system is user-friendly and offers a smooth login experience.

### 4. **Scalability**
- **Challenge:** As organizations grow, the SSO system must scale to accommodate more users and applications.
- **Solution:** Choose an SSO solution that is scalable and can handle increased load without compromising performance. Regularly review and update the system to meet growing demands.

### 5. **Compliance and Regulatory Requirements**
- **Challenge:** Ensuring the SSO system complies with various regulatory standards can be complex.
- **Solution:** Stay updated with relevant regulations and ensure the SSO solution adheres to compliance requirements. Conduct regular compliance audits and maintain detailed documentation.

By addressing these challenges with the right strategies, organizations can successfully implement Federated SSO and enhance their identity security framework.

## Federated SSO Future Trends on the Rise {#federated-sso-future-trends}

- **Increased Adoption of Zero Trust Architecture:** Federated SSO will play a crucial role in implementing zero trust principles, ensuring secure access across diverse environments.
- **Enhanced Interoperability:** Expect more seamless integration between different identity providers (IdPs) and service providers, leveraging standards like SAML, OAuth, and OpenID Connect.
- **AI and Machine Learning Integration:** These technologies will enhance threat detection and response, making federated SSO more secure and adaptive.
- **Decentralized Identity:** Blockchain and decentralized identity solutions will gain traction, providing users with more control over their digital identities.
- **User Experience Focus:** Simplifying the user experience while maintaining robust security will be a priority, reducing friction in authentication processes.
- **Regulatory Compliance:** As data privacy regulations evolve, federated SSO solutions will need to ensure compliance with global standards.

These trends indicate a promising future for federated SSO, balancing security, convenience, and compliance.

Federated Single Sign-On (SSO) or Federated Identity management means integration with an application across an organization.

Federated Identity Management (FIM): FIM VS Single Sign-On (SSO)

What is Federated Single Sign-On (SSO) | Federated Identity Management (FIM)