If the user exists in the client requesting authentication, the user will be logged in, otherwise a login failure will occur. For example, if I go to the Dimensions CM website, I will be redirected to the SBM SSO Engine where my login can be authenticated via LDAP. Finally, I will be returned to the calling product (application) with an authenticated token where my username will be mapped to the product's internal user database; if the username does not exist, login will not be granted.
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