RSA and VeriSign have worked up a proposal for sourcing extra strong authentication as a cloud-based service.

The arrangement means it will be possible to use the VeriSign VIP authentication service in combination with RSA’s two-factor SecurID hardware tokens, increasing the choice in one-time password (OTP) authentication. 

VIP is a managed two-factor security-as-a-service offering from Verisign which secures user access to multiple web sites with a single OTP authentication device.

VeriSign said it plans to work to tie the RSA SecurID Authentication Engine into its own VIP Authentication Service by the end of the year.

As of then it will also start to resell RSA SecurID hardware tokens to VIP customers, while RSA will resell the VIP Authentication Service to its prospects and customers.

As part of the deal, the companies will work to transfer all existing users of RSA’s GoID managed consumer authentication service customers to the VIP Authentication Service by the end of Q2 2010.