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Which solution is BEST for enabling data sharing between separate subsidiaries while maintaining distinct identities?

  1. Implement a shared database across all companies

  2. Federate with the parent as the Identity Provider

  3. Set up VPN connections between subsidiaries

  4. Use dedicated APIs for data exchange

The correct answer is: Federate with the parent as the Identity Provider

Enabling data sharing between separate subsidiaries while maintaining distinct identities is best achieved through federating with the parent organization acting as the Identity Provider. This approach allows for centralized identity management while ensuring that each subsidiary retains its unique identity and control over its data. By utilizing federation, each subsidiary can authenticate and authorize its users through the parent organization’s identity management system. This adds an extra layer of security and simplifies the user experience, as users from different subsidiaries can access shared resources without needing to manage multiple identities or logins. This solution contrasts with implementing a shared database, which could lead to complexities in data integrity and identity governance given that all subsidiaries would be accessing a single set of data. Setting up VPN connections could facilitate secure communication, but it doesn’t directly address identity management and may result in management challenges. Using dedicated APIs for data exchange would provide a mechanism for data transfer, but it would not inherently resolve the identity management concerns across multiple subsidiaries.