Companies can use federation services with custom access token system to enable users / applications to connect without worrying about safety threats to overcome this challenge. In order to setup this mechanism companies require ADFS (Active Directory Federation Services) or any third-party federation applications to achieve this feature. ADFS provides a means for managing online identities and providing single sign-on capabilities. This is becoming important because of the transition being made from running applications on-premises to running applications in the cloud.
This blog further explore how to enable SSO with Azure AD to Integrate AWS login.