[HN Gopher] An admittedly wandering defense of the SSO tax
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       An admittedly wandering defense of the SSO tax
        
       Author : ned_at_codomain
       Score  : 38 points
       Date   : 2024-08-20 20:41 UTC (2 hours ago)
        
 (HTM) web link (ssoready.com)
 (TXT) w3m dump (ssoready.com)
        
       | matheist wrote:
       | Nice explanation. I'd be interested in hearing from anyone who
       | used to feel negatively about the "SSO tax" and then switched to
       | feeling positive/neutral about it -- what changed your mind and
       | why? Vice versa, too. (Not interested in rehashing arguments
       | about why it's good or bad.)
        
       | wmf wrote:
       | This car with no seat belts, no airbags, and no ABS is just price
       | discrimination! Strangely, no one seems interested in celebrating
       | the implied discount for not having safety.
        
         | ned_at_codomain wrote:
         | This is a solid objection that I hadn't considered before!
         | 
         | Why isn't SAML SSO mandated (either literally or my
         | convention)?
         | 
         | Practically speaking, as someone who spends all day trying to
         | convince developers to _implement_ SAML SSO, I really wish this
         | were the case :)
         | 
         | I think in practice, software vendors correctly assess that
         | relatively few of their prospective customers actually care.
         | 
         | If many small / price sensitive companies really wanted SAML
         | SSO from their vendors -- if there were really meaningful
         | demand -- I imagine we'd see more pricing plans with SAML SSO
         | bundled into entry level tiers.
         | 
         | As for mandates, this is a challenging ethical question. I
         | don't think it's necessarily _obvious_ in all cases that some
         | institution should impose safety regulations upon us.
         | 
         | There's clearly some set of risks we accept, and some set of
         | risks we don't accept. And we all draw the line in different
         | places.
         | 
         | This is pretty obviously true. Not many of us worry about
         | objects randomly falling off buildings. We don't all wear
         | helmets all the time. It's certainly a risk, but do we really
         | care?
         | 
         | I think the revealed preference from many software buyers is
         | basically ... no, they don't care about having the security
         | benefits of SSO.
        
           | wmf wrote:
           | I also don't want to mandate anything but as an industry we
           | have to find some way to do better on security. Free SSO and
           | 2FA with very strong nudges seems like a good path.
        
           | ameliaquining wrote:
           | On a lot of issues (passwords, SQL injection, automated
           | deployments), buyers originally didn't care much about
           | security, but the security community slowly but surely
           | managed to shift norms and get doing the right thing to
           | become normalized. I think that could happen on SSO too, if
           | not for the fact that it's so effective as a price
           | discriminator, which in turn I think makes it less likely to
           | happen absent some kind of regulation. (Developers at small
           | companies might not care, or they might _want_ to do the
           | right thing but be unable to justify it to the boss;
           | meanwhile, SSO is usually a non-negotiable requirement for
           | enterprises. I think that 's a bigger factor than apathy or
           | "price sensitivity" (enterprises are often extremely price-
           | sensitive) in why it's such a good discriminator.)
           | 
           | I favor regulation on this, even though it's probably not
           | necessary in every case, simply because I don't see any other
           | way to break this equilibrium.
        
           | commandar wrote:
           | >This is a solid objection that I hadn't considered before!
           | 
           | To be quite frank: this strongly suggests that while you put
           | a lot of effort into writing a long article in defense of the
           | SSO tax, you didn't perform more than the most cursory
           | research about _why_ it 's a topic of discussion.
           | 
           | This argument is literally above the fold on the two top
           | search results for the term.
           | 
           | >In short: SSO is a core security requirement for any company
           | with more than five employees.
           | 
           | https://sso.tax/
           | 
           | And the other _explicitly_ makes the car-safety analogy:
           | 
           | >Imagine buying a car and the manufacturer asks for an extra
           | payment to unlock 100% of the braking power. Not offering
           | security features if they already exist in your product means
           | a vendor doesn't care about your security. Our aim is to
           | spotlight vendors who overcharge for security features, in
           | hopes of instigating a change in the industry.
           | 
           | https://ssotax.org/
           | 
           | And to be franker: the word "security" appears exactly once
           | in your entire piece. That's a near-complete avoidance of the
           | actual issue that people are highlighting.
           | 
           | I perfectly understand the rationale behind the pricing
           | model. The point is that "only large enterprises need or care
           | about SSO" is _completely_ wrong-headed and detrimental to
           | the overall security posture of _any_ business customer. That
           | is and should be unacceptable.
        
             | ned_at_codomain wrote:
             | Hm, that seems like a misrepresentation of what I'm saying.
             | 
             | I specifically meant that the previous commenter made me
             | think of mandates.
             | 
             | I run a company that makes SAML SSO software. I've thought
             | quite extensively about SAML SSO. See:
             | 
             | https://news.ycombinator.com/item?id=41036982
             | 
             | Addendum: I have a very strongly vested interest in more
             | people using SSO. I literally spend my time trying to
             | convince developers to set it up!
        
       | stackskipton wrote:
       | As someone who deals with application support, another big reason
       | is SSO is such a support nightmare. No one wanted to touch SSO
       | tickets because of how frustrating they were to deal with. People
       | wouldn't follow the instructions. Microsoft/Google moved
       | something in their portal and we didn't know so instructions were
       | useless. Microsoft/Google would be having issues and we got
       | tickets because they were still working until tokens expired.
       | Their Admins would turn on 2FA and when their support desk got
       | "Cannot login to $OurProduct", they would just flip it over to us
       | without caring. List goes on and on.
        
         | sparrish wrote:
         | This is the real reason there's an SSO tax. It costs to support
         | SSO, the customers who want SSO should pay for that cost.
        
           | ned_at_codomain wrote:
           | I would agree that this cost-plus pricing structure applies
           | in some cases. Some companies definitely want to constrain
           | the universe of SSO users.
           | 
           | But this will usually show up in pricing structures with SSO
           | as a relatively inexpensive add-on feature -- not as part of
           | an indivisible bundle.
           | 
           | Seemingly we want to talk about both of these things as "the
           | SSO tax" but I think we can agree that they're pretty
           | different scenarios.
        
           | wmf wrote:
           | I thought some company had free SSO for Google and 365 only
           | and advanced SSO on the enterprise tier. I don't remember
           | which company though, so maybe I made this up.
        
           | candiddevmike wrote:
           | There are plenty of folks who setup SSO with open source
           | projects without a support contract. Why should they have to
           | pay for it with other software?
        
         | SkyPuncher wrote:
         | I was lead engineer for a startup. By virtue of being the most
         | flexible in my day-to-day, I ran front line for most of the
         | customer support issues.
         | 
         | SSO issues took exponentially longer than nearly every other
         | support issue and accounted for well over 50% of our support
         | efforts.
         | 
         | We didn't really feel like there was much we could do about it
         | either. Most of it came down to the fact that the user of our
         | application was not the person also able to setup SSO. The
         | result was a massive game of pass the hot potato until we would
         | get fed up and request a call with our customers IT team.
        
         | t0mas88 wrote:
         | This it's exactly the issue with SSO and enterprise customers
         | with complex requirements on how their IDP needs to be
         | integrated.
        
         | grinich wrote:
         | The "human cost" of SSO is definitely the hardest part.
         | 
         | At WorkOS we solved this by shipping the whole config workflow
         | in the form of an admin portal. It checks things like SAML
         | certificate, signatures/assertions, attribute mapping, etc. and
         | a zillion other edge cases across dozens of identity systems.
         | 
         | It's pretty much "Stripe Checkout" for setting up SAML. Live
         | demo here (click "Configure")
         | https://explore.workos.com/app/settings
        
           | ned_at_codomain wrote:
           | Oh cool! We have pretty much the same thing
        
             | greenstreet1994 wrote:
             | how is yours different? curious to know
        
       | anotherhue wrote:
       | It's a bad system and you should feel bad for using it.
       | 
       | By all means charge enterprises more, but base it on something
       | else, headcount, revenue, non-profit status...whatever.
       | 
       | Every time I hear about a data breach I wonder if someone avoided
       | perfectly reasonable SSO protections because of this tax.
        
         | colechristensen wrote:
         | If you have enterprise pricing, have substantial enterprise
         | features. That's it.
        
       | TZubiri wrote:
       | I get that there's some correlation between hacker culture and
       | piracy and free as in gratis.
       | 
       | But lately I've seen a flood of flat out complaining about things
       | costing money.
       | 
       | As software devs we should be for software having a price tag,
       | not against it
        
         | langcss wrote:
         | The complaint isn't about anything costing money. It is about
         | making SSO an enterprise feature which pushes the price up
         | alot. At the same time SSO is good for security. So it is like
         | an office space charging double for swipe cards instead of a
         | number lock.
         | 
         | I think what annoys people is the reason why: a way to make
         | more money from enterprises, and that they could make that
         | money some other way.
        
           | happyopossum wrote:
           | > So it is like an office space charging double for swipe
           | cards instead of a number lock.
           | 
           | If the landlord had to hire a bunch of extra support people,
           | with expertise outside their normal domain, just to support
           | swipe cards then this would make sense, no?
           | 
           | I can imagine a lot of products where accompany literally
           | could not afford to provide support for SSO issues to a basic
           | tier customer with 100 employees
        
       | happyopossum wrote:
       | My job involves working with customers to test out products - has
       | for years, and for several jobs. None of my products have ever
       | charged extra for SSO, and most require it, so I get to deal with
       | it all the time.
       | 
       | For the past 5+ years, the part of configuration that takes the
       | longest - by far - is always SSO. I cannot imagine the amount of
       | added support calls, time, and frustration brought about by it,
       | so I can completely understand why some companies gate it behind
       | more expensive tiers.
        
       | SOLAR_FIELDS wrote:
       | The reality is much simpler than the article would have you
       | believe. The article goes through all these convoluted
       | explanations about value add but the simple fact of the matter is
       | that SSO is the one differentiator that businesses will guarantee
       | pay for. The other features are often unknown to stakeholders
       | outside of the internal champion and need explanation oftentimes.
       | But SSO, enterprises always need at a certain scale. So it's
       | incredibly effective because it's the one feature that every
       | single enterprise that wants to purchase your product cannot do
       | without.
       | 
       | In fact, the exact opposite conclusion of the article is reached
       | if we follow this logic. One of the taglines reads: _Buyers want
       | different things_. Well, maybe the stakeholder /champion actually
       | using your software might. But often they are not the ones that
       | are making the money decision in an organization. The people who
       | ARE making that decision, however, do not want different things.
       | They probably could care less about different things. They want
       | SSO.
        
         | karlgkk wrote:
         | I think the friction here is from midsized companies. Where
         | onboarding software that's purchased is much harder than free
         | software.
         | 
         | I think it might be worth saying "SSO is free, up to n users".
         | 
         | Also this is pricing for "adequate security", which rubs a lot
         | of people the wrong way.
         | 
         | But I do agree, competent, organizational wide SSO with SCIM is
         | definitely an enterprise feature.
        
         | commandar wrote:
         | I'm in the healthcare world.
         | 
         | SSO is a hard requirement for us.
         | 
         | There have been many, many times where we've considered an
         | application where we could justify the spend at, e.g., the
         | departmental level for the limited user base that needed it,
         | but where SSO being bundled into higher price tiers combined
         | with minimum user counts took a potential solution from "very
         | easy discretionary spend" to "not happening, full stop."
         | 
         | I'm often the one having to make these decisions. It's
         | absolutely exhausting having to explain to non-technical
         | department heads that "yes, this would solve your problem at a
         | price that fits budget, but the vendor bundles a vital security
         | feature into a tier that inflates the price to a point that it
         | makes this unfeasible."
        
       | paxys wrote:
       | This is a good economics lesson but fails to address the actual
       | issue people have with the SSO tax. It isn't about the concept of
       | price discrimination, but price discrimination when it comes to
       | _security_. You can charge extra for convenience features or
       | other value-add features, sure, but the choice of login provider
       | is something that should be table stakes for every person and
       | every organization regardless of how big they are or how much
       | they can pay. An even worse example - plenty of apps gate _two-
       | factor auth_ behind a paid tier as well.
        
         | SOLAR_FIELDS wrote:
         | Sure, but most SaaS support "SSO at home" in lower tiers via
         | either Google idp or GitHub. So yes you're locked into those
         | vendors which kind of sucks but it's not necessarily true that
         | you have to give up security without forking over the "SSO tax"
        
       | JohnMakin wrote:
       | This reminds me of when several years ago I was a pretty early
       | enterprise Vault user - I poc'd out a pretty simple
       | implementation with the OSS version that at that time included
       | SSO support with Okta. Management was like "great we don't have
       | to pay for any of this then, let's use OSS then" and I argued
       | that there was zero chance they were going to leave that as a OSS
       | feature, sure enough, some months later they rug pulled it. It
       | was pretty much the only additional feature outside of core
       | functionality we absolutely "needed," everything else was pretty
       | fluff.
        
       | tomrod wrote:
       | Neat advertisement to drum up support for easily adding SSO with
       | an open source tooling.
        
       | icambron wrote:
       | I don't really mind paying for SSO. It's fine. But I hate that
       | it's the one feature in the "enterprise" tier that I need, and
       | now I have to talk to a sales rep and sign a contract. You could
       | have just charged me more per seat and it would have been better
       | for both of us. Instead I looked for another vendor that didn't
       | let their sales team convince them to let the AEs gatekeep a
       | basic feature.
        
       | ivan_gammel wrote:
       | I was responsible for IT in a hypergrowth scale-up and I don't
       | like this article, it misrepresents the problem. The problem is,
       | when you are big enough to set up SSO like Okta, you have to
       | upgrade nearly all of your subscriptions in a short time to make
       | use of it, suddenly resulting in a huge increase in the budget.
       | So, let's say the business goes from X to 2X in revenue and from
       | X to almost 2X in staff (let's assume there's some small increase
       | in productivity over time). In some incredible logical twist
       | every SaaS provider thinks that 2X increase in price is
       | affordable, despite that the company is still burning money and
       | the enterprise features aren't really needed yet. 2X budget isn't
       | approved by CFO, cost-cutting exercise starts and price increase
       | is matched by significant reduction in number of licenses. Did it
       | worth it? Not sure. Volume-based pricing complimented by feature
       | add-ons would do a good job too.
        
       | dakial1 wrote:
       | This is the same way all airlines in the world work since the
       | invention of Revenue/Yield Management. Which is basically price
       | discrimination to get the biggest piece of the value.
       | 
       | Airlines will mostly segment client based on things like Minimum
       | Stay (in destination) and how many days before the flight the
       | ticket was bought to find the most desired of all users: The
       | business traveler.
       | 
       | SSO is (roughly) the same thing, companies who would like SSO are
       | probably the ones in the corporate level, and this is an
       | efficient way to find them. Of course there are false positives,
       | but software companies are willing to live with those to get the
       | biggest part of the pie.
       | 
       | And this is actually good for users, as it allows for the other
       | users who have more flexibility to pay a lot less (both at
       | airlines and software) than they would pay if those companies
       | didn't discriminate.
        
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