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Suggestion
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Resolution: Fixed
Problem Definition
When SAML is enabled, users have to be created both in the identity provider and Atlassian Cloud in order for a user to successfully log in.
Suggested Solution
Allow users to be automatically created and updated in Atlassian Cloud when the user is given or removed application access or edited via the identity provider.
Workaround (Optional)
Site-admins can enable self-sign up for certain domains, which will create the users automatically upon the first log in. However, this is still not ideal as users are not in sync between the IdP and Atlassian.