Identity federation allows users to access multiple systems with a single set of credentials by creating a trusted connection between an identity provider and a service provider, enabling single sign-on (SSO). Dynatrace's Flexible Identity Federation offers enhanced configuration options to meet the complex needs of modern enterprises, allowing for identity federation at the account or environment level, rather than applying a uniform global configuration. This flexibility is crucial for organizations that manage diverse user identity landscapes, such as ACME Inc., which operates in multiple regions with distinct projects and requires separate authentication routes for different Dynatrace accounts or environments. The system also supports extending access to partners or consultants by allowing users from different domains to authenticate via ACME’s IdP without needing to verify domain ownership. This approach ensures centralized identity management, streamlined access, and improved security within Dynatrace's Identity and Access Management strategy.