SAML is an important standard used in the SaaS world.
Scenario before SAML
Traditionally, the user and password need to be created in the service provider.
The cloud service provider need to maintain the users.
If a user leave the company, we no longer want the user to be able to access the cloud service.
The problem is that the administrator within the company may not be aware or may not have the visibility or the control over the user store in the cloud service.
Remember that the client company may use multiple services. The IT administrator in the client company will need to keep track all the services that the user has access and figure out how to get the user out of the systems.
The IT administrator really wants to have one switch to turn off all the access.
The things become more complicate as the user may just change the job role, and the IT administrator may need to change the permissions granted to the user in each of the service the user has access to.
If the cloud service does not integrate with the client company's IT system, the entire system won't flow very well.
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