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sso-directory is the services prefix for the AWS IAM identity Center directory (successor to AWS Single Sign-On directory or AWS SSO directory)
, while identitystore is the services prefix for the AWS Identity Store (legacy term: AWS SSO store or AWS SSO identity store).
So both exist, but are used for different things.
To give an example:
identitystore:CreateGroupwould grant permission to create a group in the specified IdentityStoresso-directory:CreateGroupwould grant permission to create a group in the directory that AWS IAM Identity Center provides by default
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