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We have external users who use a Sharepoint based website. The users are stored in a SQLServer database. We also use SalesForce's service cloud.

Users register and login to each of these services separately.

Now we want to have SSO with SalesForce as the IdP. We want users to have a single login, and be stored in single location. Do we still need ADFS 2.0?

This article on single sign on implies that we do. Does that mean all of our Sharepoint users need to be migrated into ADFS? Is there any way we can migrate them into SalesForce and eliminate ADFS? Any guidance will be appreciated.

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You need an Identity Provider to be able to login to Salesforce / Sharepoint seamlessly. This is usually ADFS in a Sharepoint scenario.

Salesforce can also be configured to act as an IdP and in this case Sharepoint will be the SP

Here's an article on using Salesforce as an IdP https://help.salesforce.com/apex/HTViewHelpDoc?id=identity_provider_enable.htm&language=en_US

You need to check that Sharepoint supports Salesforce as an IdP, but since this is based on SAML which is an open standard, I would think this should be possible to do.

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Eventually got in touch with Salesforce. They pointed us to the following document

Configuring SSO to Sharepoint without ADFS

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