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WS-Federation (Web Services Federation) is an Identity Federation specification

WS-Federation defines mechanisms for allowing different security realms to broker information on identities, identity attributes and authentication. WS-Federation focuses on federated identity and trusting authentication tokens across different realms, privileged password management is concerned with the security, control, and audit of high-risk account passwords within an IT environment

WS-Fed will only be used with Exchange and a few other applications.