In what scenario would federation be preferred over password vaulting?

Federation is preferred over password vaulting in scenarios where managing multiple user accounts securely is essential. In a federated identity management system, users can authenticate through a single identity provider (IdP) and gain access to multiple applications without needing separate credentials for each one. This approach enhances security by reducing the number of passwords users need to remember and manage.

When multiple user accounts are involved, federation allows organizations to centralize authentication and authorization, simplifying user management while maintaining a consistent security posture. This minimizes the risks associated with password fatigue and helps ensure that users follow best practices for password management.

In contrast, password vaulting is typically used when it is sufficient for users to manage one secure password for a service. This is not ideal for environments with a variety of applications requiring different accounts, as it does not address the complexity and security challenges associated with handling numerous accounts. Therefore, federation becomes the more suitable choice in such scenarios.