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title: "Identity Federation — Identity Glossary | IDSync"
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Architecture

# Identity Federation

Identity federation is the practice of letting one organization's identity provider authenticate users into another organization's applications — enabling B2B SSO, customer SSO into partner apps, and cross-domain single sign-on without duplicating accounts.

Last reviewed 3 months ago

Key points

-   Federation is what makes 'Sign in with your work account' possible across organizations.
-   Protocols: SAML 2.0 (dominant for enterprise federation), OIDC (modern web/mobile), WS-Federation (legacy Microsoft), SCIM (for user lifecycle alongside SSO).
-   B2B SSO is the most common modern use case — your customer's IT team configures their IdP to sign their employees into your SaaS app.
-   Federated trust is one-way: the SP trusts the IdP's signature, not the other way around.
-   Just-in-time (JIT) provisioning creates the user account on first federated sign-in; SCIM keeps it in sync afterward.

## What is identity federation?

Identity federation is the trust pattern that lets users authenticate with their **home organization's IdP** (Okta, Entra ID, Google Workspace) to access **another organization's applications** — without that second organization having to manage their passwords, MFA, or lifecycle.

The IdP signs an assertion ("yes, alice@acme.com authenticated with MFA at 09:14 from a managed device"), the receiving application validates the signature against a pre-shared trust (SAML metadata or OIDC discovery), and the user gets in. Federation is what makes multi-organization SSO possible at internet scale.

## Common federation patterns

-   **Workforce → SaaS** — Acme's employees sign into Salesforce, Slack, GitHub using Acme's Okta. Each SaaS app is configured as a Service Provider in Okta.
-   **B2B SSO** — Acme is a SaaS vendor; their customer "Globex" wants their employees to sign in with Globex's IdP. Acme implements multi-tenant federation, often via WorkOS, Auth0, Frontegg, or Stytch.
-   **Cross-cloud federation** — AWS, Azure, and GCP all support OIDC federation so workloads (CI runners, Kubernetes pods) can assume roles without long-lived secrets.
-   **Government / supply chain** — InCommon (US higher ed), EduGAIN (academia), FICAM (US federal), eIDAS (EU).

## Protocols

| Protocol | Where it dominates | | --- | --- | | SAML 2.0 | Enterprise SaaS, government, legacy on-prem apps | | OIDC | Modern web/mobile apps, B2C, workload federation | | WS-Federation | Legacy Microsoft (SharePoint on-prem, ADFS) | | OAuth 2.0 (alone) | Authorization, not authentication — but often paired |

## When buyers care

-   **B2B SaaS revenue gate** — every enterprise customer will require SAML/OIDC SSO and most will require SCIM.
-   **M&A integration** — federating identities across the parent and acquired company is faster than directory migration.
-   **Contractor / partner access** — federate instead of creating guest accounts.
-   **Reducing the credential blast radius** — no separate password for the partner app means no extra phishing target.

## Common misconceptions

-   **"Federation = SSO."** SSO is the user experience; federation is the trust model that makes cross-org SSO possible.
-   **"Federation provisions users."** It usually doesn't on its own — federation handles authentication; SCIM (or JIT) handles provisioning.
-   **"More federation = more secure."** Only if the upstream IdPs are well-secured. Federating with a partner whose IdP has no MFA imports their risk.

## Editorial note

When buying a B2B SaaS product, "SSO + SCIM with your IdP" should be table stakes, not an enterprise add-on. The "[SSO tax](https://sso.tax)" debate exists because too many vendors paywall security.

IDSync provides educational buyer guidance based on publicly available information, editorial review, and user-submitted data. Vendor information should be verified before purchase. [Who we are, our methodology & disclosure policy](/about).

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