Basic Value Propositions for FIDM
Economics of scale: The reuse of credentials shares the cost of provisioning and supporting credentials and their use.
Information Security and privacy: The reuse of credentials makes it feasible to have strong credentials and procedures in place to protect identity-related security objectives. As a result it is possible to make processes available on-line where the risk would have been too high without strong protection in place.
Business enabling: Whereas applications with a high value per transaction or per user usually can afford their isolated IDM, long-tail applications cannot. The availability of better price/performance credentials will enable new applications.
Improving existing processes: Many on-line applications loose prospective customers or users when they require registration. Confirmation mails lost in SPAM-filters are a frequent cause. Instant identification of a user would result in a higher ratio of users continuing through the full process.
Identity Provider Business Model
IdP charges opex to federation
The IdP (which might be some organizational unit of a participant of a federation) charges its operational expenses to the federation. Expenses are paid by users or providers by some allocation code based on users, transactions or similar measured quantities.