Single Sign-On (SSO) for SMEs explained simply: one login for all tools

Single Sign-On (SSO) means: employees log in once and then have access to all approved tools – file storage, AI chat, document system, automation. For SMEs, SSO brings greater security, less password chaos and the ability to block access when someone leaves with one click. Open-source solutions such as Keycloak or Authentik make this possible without licensing costs.

The problem without SSO

• Every tool has its own users and passwords.
• Employees use the same password everywhere – or write it down.
• When someone leaves, someone has to disable access separately in each system – and one gets forgotten.
• New colleagues wait for days for all access rights.
• Two-factor authentication is sometimes available, sometimes not.

How SSO works

A central service, the identity provider, manages all users, groups and logins. If someone wants to open a tool, it redirects them to the central sign-in. After successful authentication, the identity provider confirms to the tool: “This is Ms. Müller from administration.” The tool never has to know the password itself.

The benefits for SMEs

• Security: A strong password plus a second factor (app or security key) for everything.
• Quick locking: When an employee leaves, an account is deactivated – all access is revoked immediately.
• Fast onboarding: New employees receive the correct permissions all at once via groups.
• Overview: Who has access to what? A central place provides the answer – also important for data protection and audits.
• Comfort: One login instead of ten.

What SSO has to do with AI and open-source tools

Anyone using multiple self-hosted tools – for example Nextcloud, Open WebUI, Paperless-ngx and n8n – need a shared user management. Otherwise, exactly the password chaos you wanted to avoid is created. SSO is therefore the glue of a open platform.

Open-source options

• Keycloak: widely used, Apache 2.0 license, backed by Red Hat, very powerful – see Keycloak in SMEs.
• Authentik: modern interface, quick to set up, core under MIT license – see Authentik in the enterprise.
• The direct comparison shows Keycloak vs. Authentik.

And what about Microsoft Entra ID or Google?

Anyone already using Microsoft 365 or Google Workspace can use their sign-in services as SSO. Open-source solutions can also be connected to them. If you want to operate your user management independently and in Germany, choose Keycloak or Authentik as the central instance.

Introduction in five steps

1. List the tools that are to be connected.
2. Define groups and roles (e.g. administration, sales, management).
3. Set up the identity provider on a server in Germany, enable two factors.
4. Connect tools one after the other, test with a pilot team.
5. Adjust the onboarding and offboarding process: Who creates accounts, who locks them?

bettersorted relies on open, inspectable components for its customers – hosted on servers in Germany and bundled in the automaisa Hub. We provide manufacturer-neutral consulting, are a BAFA-registered advisor and an authorized INQA coach. The Consulting and guided implementation can be subsidized through INQA-Coaching at 80%; the appropriate path is shown by the Funding check. For an non-binding initial consultation: Contact.

Example: An employee leaving

An illustrative scenario: An employee leaves a company with ten online tools. Without SSO, someone would have to block ten access accounts – and forget the old cloud storage. With SSO, a single account is deactivated; all connected tools are immediately blocked, and the log shows that it is done.

Typical mistakes

• No second factor: A single password for everything without a second factor is a risk.
• No emergency access: If the identity provider fails, a defined fallback path is needed.
• Groups that are too broad:Everyone gets everything — that conflicts with data protection.
• Offboarding process not adapted:Technology is only useful if HR and IT work together.

Costs and funding

With open-source tools, there are no license costs for single sign-on. Costs arise for setup (planning, installation, integration, testing), operation (server or hosting in Germany, updates, monitoring, data backup) and support (training, rules, contact persons). We do not quote fixed prices because scope and starting conditions vary greatly.

Eligible for funding is the Consulting and guided implementation: The INQA-Coaching covers 80% of coaching costs nationwide (up to €11,520, vouchers until 30.06.2028); a preliminary analysis is subsidized by the BAFA consulting grant with 80% in the new federal states, Lüneburg and Trier, otherwise 50% – for applications submitted by 31.12.2026.

Frequently Asked Questions

What is Single Sign-On in simple terms?

A central login: you sign in once and can then use all approved applications without any further passwords.

Is Single Sign-On more secure?

Yes, if it is combined with a strong password and a second factor. Access can be managed centrally and blocked immediately when someone leaves.

Is SSO worthwhile for small businesses?

Yes, especially once several tools are in use. Open-source solutions do not incur license costs, only the effort for setup and operation.

Which SSO solution is suitable for SMEs?

For self-hosted tools, Keycloak and Authentik are suitable options. Authentik is often quicker to set up, while Keycloak offers more depth for complex requirements.

As of October 2026.