Active Directory Federation Services

[JoshSec]

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This allows a system to provide controlled access to its resources or services to a user that belongs to another security realm without requiring the user to authenticate directly to the system and without the two systems sharing a database of user identities or passwords.
In practice this approach is typically perceived by the user as follows:
The user logs into their local PC (as they typically would when commencing work in the morning)
The user needs to obtain information on a partner company's extranet website - for example to obtain pricing or product details
The user navigates to the partner company extranet site - for example: http://example.com
The partner website now does not require any password to be typed in - instead, the user credentials are passed to the partner extranet site using AD FS
The user is now logged into the partner website and can interact with the website 'logged in'