External authentication means that the user login information needed by Essbase is maintained in a central authentication directory, such as Lightweight Directory Access Protocol (LDAP) Directory.
An authentication directory is a centralized store of user information such as login names and passwords, and other corporate information. The repository functions like a telephone directory. The authentication directory probably contains much more than user names and passwords; for example, it may include e-mail addresses, employee IDs, job titles, access rights, and telephone numbers. It may also contain artifacts other than users; for example, it may contain information about corporate locations or other entities.
To use EPM System security for external authentication in Essbase native security mode, you must install and configure Shared Services:
Register Essbase with Shared Services.
See the Oracle Hyperion Enterprise Performance Management System Installation and Configuration Guide.
Configure user directories for Essbase.
See the Oracle Hyperion Enterprise Performance Management System User and Role Security Guide.