I am working on an internal authentication system for users of a set of of RESTful web applications. Our intention is that a user should be able to sign-on once via a web form and have appropriate access to all these RESTful applications in our domain, which may be distributed in a private cloud across many servers. (I understand already that having a single authenticated session is not aligned with a pure RESTful approach, but this is a usability requirement.)
The applications themselves will be written in a variety of programming languages so a language-neutral approach is required. It was suggested to me that we might use OpenID or OAuth or a similar framework to handle the authentication but my understanding is that these are intended for third-party services and not the first-party services that would share data on our internal system. In this case, we might have a central provider service with all the other applications treated as third parties (or relying parties).
Questions:
You do not need OAuth for SSO services.
The primary use/advantage of OAuth is, as you know already, granting access to a 3rd party app to access/use your resource in a controlled manner.
Rather than having an authentication/authorization server that you would need for OAuth, why not use a single log in service across all your APIs. An OAuth access token is totally different from what you need.
As far as I understand, what you can have is something like OAuth in a way that your server vends out tokens to the app. (I'm assuming that it's a totally internal system, so tokens cannot be misused).
So basically what I'm proposing is:
In short separate the login + token generation + token verification into a different module. All APIs should use this module for login/token verification.
What I have proposed here works like OAuth but all security aspects have been stripped down since you want to use it in a private cloud.