Identity Federation refers to the ability to accept users that were not authenticated in your systems (such as AWS STS). SSO is the ability to login in once and then access many applications without needing to enter credentials again. It is possible to achieve SSO through federation (AWS SAML support : http://docs.aws.amazon.com/STS/latest/UsingSTS/CreatingSAML.html). But you can have SSO without federation. (e.g. an Active Directory domain and multiple apps in that domain)
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