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Extranet. An extranet is a network that is under the administrative control of a single organization but supports a limited connection to a specific external network. For example, an organization may provide access to some aspects of its intranet to share data with its business partners or customers.
The partner website now does not require any password to be typed in; instead, the user credentials (in a secure assertion) are passed to the partner extranet site using AD FS. The user is now logged into the partner website and can interact with the website as if logged in.