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What is Federation in IAM?

Published in IAM Federation 3 mins read

Federation in Identity and Access Management (IAM) is a system that allows authorized users to access multiple applications and domains using a single set of credentials.

Understanding Federated Identity

At its core, IAM federation establishes trust relationships between different identity management systems. Instead of a user having separate accounts and passwords for every single application or service they use, federated identity links a user's identity across multiple identity management systems. This means a user authenticates once with their "home" identity provider (IdP), and this authentication is then trusted by other service providers (SPs), allowing the user to access resources without re-authenticating.

Think of it like using your Google or Facebook account to log in to a third-party website. You're using credentials managed by one entity (Google/Facebook) to access services provided by another.

Key Benefits of IAM Federation

Implementing federation in an IAM strategy offers significant advantages:

  • Reduced Password Fatigue: Users no longer need to remember dozens of different usernames and passwords.
  • Simplified Access: Provides a seamless single sign-on (SSO) experience across different applications and services.
  • Improved Security: Centralizing authentication reduces the risk of weak or reused passwords and simplifies policy enforcement.
  • Easier Administration: Streamlines user management, provisioning, and de-provisioning across connected systems.
  • Enhanced Collaboration: Facilitates secure access for partners, customers, and contractors to specific resources without managing external identities locally.

How Federation Works (Simplified)

Federation relies on established standards and protocols like SAML (Security Assertion Markup Language) or OIDC (OpenID Connect). The basic flow involves:

  1. A user tries to access a service (Service Provider - SP).
  2. The SP redirects the user to their designated Identity Provider (IdP) for authentication.
  3. The user authenticates with the IdP using their single set of credentials.
  4. Upon successful authentication, the IdP sends a secure assertion or token back to the SP.
  5. The SP trusts the IdP's assertion and grants the user access to the service.

This trust relationship between the IdP and SP is the foundation of federation.

Practical Examples

Federation is widely used in various scenarios:

  • Single Sign-On (SSO): Allowing employees to access internal applications (like HR systems, email, CRM) with one login.
  • Cloud Access: Enabling users to access multiple cloud services (like AWS, Azure, Google Cloud, Salesforce, Microsoft 365) using corporate credentials.
  • Business-to-Business (B2B) Collaboration: Securely granting partners access to specific applications or data.
  • Customer Identity Management: Letting customers use their social media accounts or bank credentials to log in to your website or app.

In essence, federation is a critical component of modern IAM, enabling secure and efficient access across a distributed digital landscape by linking user identities across multiple systems.

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