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I saw the press today on Zoho announcing they would be consuming Google & Yahoo accounts as an authentication source for their system.

It’s really cool that I can now auth using one of my existing accounts from Goog/Yhoo.

Our primary goal with allowing web sites to become relying parties for Windows Live ID is single sign on, that when you sign into a web site you are automatically authenticated into other Windows Live services – not to be the username/pwd store for the Internet – I would hope the other large identity stores had the same intention.

It does make me wonder why didn’t Zoho become a Relying Party of Windows Live ID so the 400m+ active accounts per month could be used to sign in?

From a contact importing point of view Zoho could have also tapped into the 30 billion relationships in the Windows Live Contacts store via the Contacts API.

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What are your thoughts?