This article addresses a potential issue when the Office 365 (O365) domain is federated with Okta while having third-party tools that redirect some users to Entra ID for authentication. When the O365 domain is federated with Okta, Okta becomes the Identity Provider (IdP) for the account, thus potentially impacting the authentication flow of these third-party tools.
- Okta Identity Engine
- Okta Classic Engine
- Microsoft Office 365
- Entra ID (formerly Azure AD)
The root cause of the potential issue is due to Okta becoming the Identity Provider once the O365 domain is federated. This leads to a potential disruption in the authentication flow of the third-party tools which redirect the users to Entra ID for authentication, resulting in an extra step where users are redirected to Okta for authentication, which might lead to failure in some cases.
To prevent this authentication issue, perform the following steps in order:
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Disconnect the third-party applications from Entra ID.
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Set up the Office 365 and Okta federation.
