Federated Identity Management

market-segment

Value Proposition

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• Liabilities - Stemming from service unavailability or security incidents.

• Two-sided market yielding dominant platforms - “Two–sided markets exhibit cross–side network effects: the value of the platform to one type of user depends on the number of users of the other type. This effect tends to yield very dominant platforms“ FIM is a two-sided market (IdP vs SP). This exhibits cross-side network effects and naturally leads to dominant platforms (Landau and Moore, 2012, p. 2).

• Network effect + competition may undermine reliability and security - If IdPs are in competition to get to the market first to benefit from network effects by attracting users, ease of use will be given higher priority than reliability or security which may bring down quality requirements (Landau and Moore, 2012).

• Assuring trust - Through identity proofing and authentication.

• Data privacy and data sharing - FIM actors collect valuable data related to their entities (e.g. IdP collects identity attributes and SP collects transactional data). Who collects, safeguards, and shares what data with whom constitute both a data privacy legal liability and an economic tussle (Landau and Moore, 2012).

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