Single Sign-On (SSO) vs. Password Managers: A Startup Security Comparison

The Limits of Single Sign-On

SSO is highly effective for centralizing authentication across major SaaS applications (Slack, GitHub, Salesforce). However, SSO fails in several common corporate scenarios:

• Non-SSO Compatible Services: Many developer tools, domain registrars, and niche SaaS platforms do not support SAML or OIDC login—or gate SSO features behind expensive enterprise pricing tiers ("the SSO tax").
• Infrastructure Credentials: Database passwords, AWS access keys, SSH keys, and SSL certificates cannot be authenticated via standard SSO logins.
• Single Point of Failure: If an employee's primary identity provider (e.g., their Google account) is locked or compromised, they instantly lose access to all corporate resources.

Why Startups Need a Dedicated Vault

A zero-knowledge password manager acts as a vital safety net alongside SSO. It provides a secure repository for shared administrative passwords, API keys, and legacy database credentials.

PassCrypt meets this startup need with Federated Vaults:

• Cryptographic Isolation: Shared folders are encrypted client-side using team members' public keys. The server has no means to access passwords, ensuring your intellectual property remains private.
• Immutable Audit Trail: Track team interactions using append-only database logs. Ensure compliance with security frameworks like SOC 2 or ISO 27001.
• Affordable Enterprise Security: PassCrypt’s team plan supports up to 6 isolated vaults for just $29.99/year—bypassing high-cost enterprise subscription fees.

The Complete Identity Stack

The most secure startups implement a dual strategy:

1. Enforce SSO (with hardware token MFA) for all corporate SaaS applications.
2. Deploy a zero-knowledge password manager (like PassCrypt) to store development keys, administrative logins, and recovery codes securely.