Understand the purpose and benefits of Single Sign-On (SSO) (AB-900 Exam Prep)

This post is a part of the AB-900: Microsoft 365 Copilot and Agent Administration Fundamentals Exam Prep Hub.
This topic falls under these sections:
Identify the core features and objects of Microsoft 365 services (30–35%)
   --> Identify the core security features of Microsoft 365 services
      --> Understand the purpose and benefits of SSO


Note that there are 10 practice questions (with answers) at the end of each section to help you solidify your knowledge of the material. Also, there are 4 practice tests with 30 questions each available from the hub's main page below the exam topics section.

Introduction

Modern organizations use many applications and services, including Microsoft 365, Teams, SharePoint, Exchange Online, and third-party cloud applications. Without a centralized authentication system, users would need to maintain separate usernames and passwords for every application they use.

Single Sign-On (SSO) simplifies the user experience and improves security by allowing users to authenticate once and then access multiple applications without repeatedly signing in.

For the AB-900: Microsoft 365 Copilot and Agent Administration Fundamentals exam, understanding the purpose and benefits of SSO is an important identity and security concept.


What Is Single Sign-On (SSO)?

Single Sign-On (SSO) is an authentication capability that allows users to sign in one time and gain access to multiple applications and services without entering credentials again for each application.

Instead of managing separate accounts for every service, users rely on a single identity managed through Microsoft Entra ID.

Example

A user signs in once and can then access:

  • Outlook
  • Microsoft Teams
  • SharePoint Online
  • OneDrive
  • Microsoft 365 Copilot
  • Third-party applications integrated with Microsoft Entra

SSO improves both convenience and security.


Why SSO Is Important

Without SSO, users often:

  • Maintain many passwords.
  • Reuse passwords across applications.
  • Forget credentials.
  • Require frequent password resets.

SSO addresses these challenges by providing a centralized authentication experience.


How Single Sign-On Works

The SSO process generally follows these steps:

Step 1: User Signs In

The user authenticates with Microsoft Entra ID.

Step 2: Identity Is Verified

Microsoft Entra confirms the user’s identity.

Step 3: Authentication Token Is Issued

A secure token is generated.

Step 4: Applications Trust the Token

Integrated applications accept the token and grant access without requiring another sign-in.

This process allows users to move seamlessly between applications.


SSO and Microsoft Entra ID

Microsoft Entra ID serves as the identity provider for Microsoft 365.

It provides:

  • Authentication
  • Authorization
  • Identity management
  • Access policies

Because Microsoft 365 services trust Microsoft Entra ID, users can access multiple services after a single sign-in.


Applications That Support SSO

SSO can be used with:

Microsoft 365 Applications

Examples:

  • Outlook
  • Teams
  • SharePoint Online
  • OneDrive
  • Word
  • Excel
  • PowerPoint

Third-Party Applications

Examples:

  • Salesforce
  • ServiceNow
  • Workday
  • Thousands of SaaS applications

Custom Applications

Organizations can integrate internally developed applications with Microsoft Entra.


Benefits of Single Sign-On

Improved User Experience

Users sign in once instead of repeatedly entering passwords.

Benefits include:

  • Less frustration.
  • Faster access to applications.
  • Improved productivity.

Reduced Password Fatigue

Managing many passwords can be difficult.

SSO reduces:

  • Forgotten passwords.
  • Password reuse.
  • User frustration.

Fewer Help Desk Requests

Password resets are one of the most common support issues.

SSO reduces:

  • Password-related tickets.
  • Administrative overhead.
  • Support costs.

Increased Productivity

Employees spend less time signing in and more time working.

Users can move easily between:

  • Teams
  • Outlook
  • SharePoint
  • Copilot

without repeated authentication prompts.


Improved Security

Although SSO simplifies access, security can actually improve because organizations can enforce:

  • Multi-Factor Authentication (MFA)
  • Conditional Access
  • Identity Protection
  • Centralized authentication policies

Centralized Access Management

Administrators can manage identities from one location instead of configuring authentication separately for every application.

Benefits include:

  • Easier administration.
  • Consistent security controls.
  • Faster onboarding and offboarding.

SSO and Multi-Factor Authentication

SSO does not replace MFA.

Instead, they work together.

Example:

  1. User signs in once.
  2. User completes MFA.
  3. Access is granted to multiple applications.

This provides:

  • Convenience
  • Strong security

SSO and Conditional Access

Conditional Access policies can still apply even when SSO is used.

Examples:

  • Require MFA outside the corporate network.
  • Block risky sign-ins.
  • Require compliant devices.

SSO and Conditional Access complement each other.


SSO and Zero Trust

Single Sign-On supports Zero Trust when combined with modern security controls.

Verify Explicitly

Authentication still occurs before access is granted.

Use Least Privileged Access

Permissions are still enforced.

Assume Breach

Additional controls such as MFA and Conditional Access continue to evaluate risk.


SSO Does Not Mean Unlimited Access

A common misconception is that SSO gives users access to everything.

This is incorrect.

SSO:

  • Simplifies authentication.

Authorization still determines:

  • Which applications users can access.
  • What permissions they have.
  • Which resources they can view.

Users only receive access to resources they are authorized to use.


SSO and Microsoft 365 Copilot

Microsoft 365 Copilot relies on Microsoft Entra identities and benefits from SSO.

After users authenticate, they can move between:

  • Outlook
  • Teams
  • SharePoint
  • Word
  • Copilot experiences

without repeatedly entering credentials.

Copilot still respects existing permissions and security controls.


SSO vs Multiple Sign-Ins

Without SSOWith SSO
Multiple passwordsOne identity
Repeated sign-insSingle sign-in
Higher password fatigueBetter user experience
More password reset requestsFewer support calls
Greater password reuse riskImproved security

Best Practices

Enable Multi-Factor Authentication

SSO should be combined with MFA for stronger security.

Use Conditional Access

Evaluate sign-in risk and device compliance.

Follow Least Privilege

Users should only access necessary resources.

Centralize Identity Management

Use Microsoft Entra ID to manage users and applications.

Educate Users

Help users understand the difference between authentication and authorization.


Exam Tips

Remember these AB-900 concepts:

  • SSO stands for Single Sign-On.
  • SSO allows one sign-in to access multiple applications.
  • Microsoft Entra ID provides SSO for Microsoft 365.
  • SSO improves productivity and user experience.
  • SSO reduces password fatigue and help desk requests.
  • SSO does not replace authorization.
  • MFA and Conditional Access continue to function with SSO.
  • SSO supports Zero Trust when combined with additional security controls.
  • Microsoft 365 Copilot benefits from SSO.
  • Users only access resources they are authorized to use.

Practice Exam Questions

Question 1

What is the primary purpose of Single Sign-On (SSO)?

A. Encrypt documents automatically
B. Allow one authentication event to provide access to multiple applications
C. Replace authorization controls
D. Eliminate passwords completely

Correct Answer: B

Explanation: SSO enables users to authenticate once and access multiple applications without repeatedly entering credentials.


Question 2

Which Microsoft service provides Single Sign-On capabilities for Microsoft 365?

A. Microsoft Entra ID
B. Exchange Online
C. Microsoft Defender XDR
D. Microsoft Purview

Correct Answer: A

Explanation: Microsoft Entra ID acts as the identity provider for Microsoft 365 applications.


Question 3

Which problem does SSO help reduce?

A. SharePoint storage limitations
B. Teams meeting duration limits
C. Password fatigue
D. Mailbox quotas

Correct Answer: C

Explanation: Users no longer need to remember numerous passwords for different applications.


Question 4

What typically decreases when organizations implement SSO?

A. File version history
B. Help desk password reset requests
C. Device compliance policies
D. Multi-Factor Authentication

Correct Answer: B

Explanation: Fewer passwords usually lead to fewer password-related support requests.


Question 5

Which security control commonly works together with SSO?

A. Multi-Factor Authentication
B. Shared mailboxes
C. Distribution lists
D. Public folders

Correct Answer: A

Explanation: MFA strengthens security while maintaining the convenience of SSO.


Question 6

Does SSO automatically grant users access to every application?

A. Yes, if they know their password.
B. Yes, after one successful sign-in.
C. No, authorization and permissions still determine access.
D. No, unless Teams is installed.

Correct Answer: C

Explanation: SSO simplifies authentication but does not bypass authorization.


Question 7

Which statement best describes the relationship between SSO and Conditional Access?

A. SSO disables Conditional Access.
B. Conditional Access only works without SSO.
C. SSO replaces Conditional Access.
D. SSO and Conditional Access work together to secure access.

Correct Answer: D

Explanation: Conditional Access policies continue to evaluate users and devices even when SSO is used.


Question 8

Which benefit of SSO improves employee productivity?

A. Automatic mailbox backups
B. Elimination of file permissions
C. Reduced repeated sign-ins
D. Increased SharePoint storage

Correct Answer: C

Explanation: Users spend less time authenticating and more time working.


Question 9

Which Microsoft 365 services can benefit from SSO?

A. Outlook only
B. Teams only
C. SharePoint only
D. Outlook, Teams, SharePoint, and other Microsoft 365 applications

Correct Answer: D

Explanation: SSO supports access across multiple Microsoft 365 services.


Question 10

How does Microsoft 365 Copilot use Single Sign-On?

A. Copilot bypasses Microsoft Entra authentication.
B. Copilot requires separate credentials from Microsoft 365.
C. Copilot benefits from the same sign-in experience used by Microsoft 365 services.
D. Copilot disables Multi-Factor Authentication.

Correct Answer: C

Explanation: Copilot relies on Microsoft Entra identities and participates in the same SSO experience as other Microsoft 365 applications.


Go to the AB-900 Exam Prep Hub main page

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