Now there are obviously shills taking advantage of the the upvote only model. Too many users upvote BS without reading it critically. My first post as this account, this is my reader, but i felt compelled to speak. Microsoft is the devil incarnate after all, along with Google, Twitter, Facebook, Apple and probably a few more I missed. SSO is via Microsoft, right? I am all for easing the admin burden, but some things we probably should not trust to "them".
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The backend of SSO can be any number of technologies. It could be AD, but could be others too ie. LDAP.
It's actually a good idea, because it makes it easier to serve as a platform for multiple domains. Perhaps the idea is to add more domains and for their to be a central identity service behind the one login platform.
For security there is a separation of concerns (identity vs. login), and ability to separately coordinate groups, for admin/security purposes and others such as the different domain access.