I would like to have single sign on to my local Jira and Confluence OnDemand, as well as integrating my local Jira issues and reports from Confluence OnDemand.
Is this possible?
It is possible to link the applications with Oauth, however, true single sign on will probably require a 3rd party to handle authentication. You can delegate user management to jira (possibly) but that still requires a login to both applications. You'd need a solution like crowd in the mix supplying user directory to both applications as well as implementing the sso authenticator for both applications.
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