This article doesn't go into a lot of depth but it provides an overview and some links around the idea of what are called 'federated services.' Think of a federated service as a single service that is provided through several sites. In a federated service, your logon identity is typically passed from server to server as you access different resources from each: in other words, the different sites have a common understanding of who you are and can coordinate their response. Though federation is important in some cases - such as travel planning - it creates a lot of overhead in others, and is not recommended.
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