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Weaponizing SSO for profit

This article looks at the practice of SaaS vendors placing Single Sign-On, SSO, capabilities behind premium pricing tiers, effectively turning a fundamental security feature into a premium offering

TL;DR

Due to a higher awareness and need for security, new regulation and security frameworks (such as ISO 27001 and NIST CF), it has become more or less a must-have for many to be able to manage user centrally.

This is a good thing. We have the technology, the standards and the knowledge to do so. It has, however, become a toxic meme for SaaS vendors to have a pricing tier structure where you need to pay for the highest tier to get to use SSO with their service.

Effectively, this is Weaponizing SSO to force companies into a higher tier than needed to access best practice security and often demanded by regulation or customers

"Ohh, you want long passwords over eight chars for your accounts, that will be an extra $2 / user / month"

"Ohh, you want to enable 2 Factor to log in, that will be an extra $3 / users / month"

"Ohh, you want to manage access to the application yourself, that will be an extra $5 / user / month"

Why are only two of the statements above considered ridiculous?

Background

I'm the CTO of a fintech company, with about 70 people and many of our customers being regulated. We are a cost-aware, frugal company, and as most these days we rely heavily on SaaS services. As we have grown, the pain of all these per seat/user models is becoming more important and expensive. There are many aspects to the classical value-based pricing tiers of SaaS applications worth criticizing, but what drives me crazy is the practice of forcing customers into the highest tier for security reasons.

It is widespread these days that SaaS providers charge for SSO through OAuth2 or SAML. SSO has during the past couple of years become more or less mandatory at our company, and many others, for new service, this pricing structure of the services brings pain. Many times we end up paying 2-3x the price for the service, just to be able to add SSO to whatever core fetcher we were looking for.

Regulation

During the last 5 years, a lot of new regulations coming online, in particular from the EU. This includes regulation such as NIS, NIS2 and DORA (and I'm sure there are more that cover its security.)

Most of them boil down to that regulated organizations should have control over their IT security and their vendors should as well. Not a bad thing in and of itself, but EU being EU combines the regulations with hefty fines for things that someone somewhere at some point may consider non-compliance.

While NISx and DORA don't specifically say so, it's more or less implied that the regulated entities vendors all must be ISO 27001 certified to keep delivering their services. There are, of course, ways around it, but in general everyone must start working in accordance to ISO 27001.

And again, working in accordance with ISO 27001 is not a bad thing. It can bring tremendous value. What it does mean is that to be compliant means having SSO for your organization and strict access control.

If you use a SaaS application, you dam well better be able to manage your users centrally, or else...

Simply put, regulation drives the adoption and necessity of SSO

The Premium Tier and Pricing strategy

There are many ways of pricing a product, but two of the most common once on the web are a value-based strategy or a cost-based strategy.

Examples of a value-based pricing model are Slack, Intercom and more. A sign of such a price strategy is that you are charged by the seat per month and that there is no clear reason that a user would drive cost.

Examples of a cost-based pricing model are Digital Ocean, Sendgrid, AWS and more. A sign indication of such a price strategy is that you are charged by what you use with a markup. You pay for a VPS at Digital Ocean, and you are charged per email sent at Sendgrid

From my quick research and gut feeling, most companies with a cost-based model seem to include a sso solution for free. This makes sense, it's straightforward to implement, it drives no extra cost, and it makes their site more secure (handling password is not something you should do if you can avoid it)

However, looking at value-based offerings, we often see that you need to buy the premium tier to get access to SSO in the service. Tiered pricing is more common than not, and when you squint your eyes looking at it as part of a value-based pricing strategy, it might make sense. But it does not.

Not that long ago, https and (at that time named) SSL were not that common on the internet. People wanting to provide a secure session needed to pay up to get a certificate. That time is gone once TLS certificates became a commodity and TLS encryption can be enjoyed by all for free these days.

Similarly, not that long ago SSO once was kind of a fringe need for many, but these days it is not. Not for individuals and not for businesses. The implementation has also become ubiquitous through third party services, such as Auth0, or through open source liberties for OAuth2 and SAML in every considerable language

It seems like this rising need for managing user accounts at companies ought to have turned SSO in to a commodity. Instead, it has been hijacked by SaaS companies to push tiers and function on customers that they do not need nor want.

A side note, there are some, in terms of strategies, that want to eat the cake and have it to. They want to get paid for both the value and the cost as separate items.

Some good examples are
Mailchimp, who charges for
- Emails sent (cost) and
- Contacts you can send emails to (value) and
- Users that can write and send emails (value)

Betterstack, who charges you for
- Users that can view logs (value)
- Storage of logs (cost)
- Uptime checks (cost)
- Integrating with Slack (value)
- SSO (value)

Shitty Service Offerings

At one point, plaintextoffenders.com shamed companies that had bad security practices regarding passwords to do better. I think that companies that weaponize SSO in their pricing structure need to be called out. It makes for a shitty experience, us all less secure and purchasing experience leaving feeling taken advantage of

edit:
A reader informed me of already compiled lists of offenders
- ssotax.org/
- sso.tax


* As of 2024-11-27

* With most of the offerings above, you get more than SSO. But to get SSO, you must pay for the premium tier

DM me at X if you want something added or changed