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An identity provider is an application that authenticates users and provides information about them to service providers.
A service provider is an application that provides a service to users and relies on an identity provider for authentication.
SAML (Security Assertion Markup Language) is an XML-based standard that allows identity providers and service providers to exchange authentication and authorization data.
SSO (Single Sign-On) is a feature that allows users to access multiple applications with one login.
In this scenario, the Salesforce Org1 and PingFederate are acting as Identity Providers that authenticates users using SAML and provides information about them to the remaining orgs (FA, SO2, CPQ).
The remaining orgs (FA, SO2, CPQ) are the service providers that provide services to users and rely on the Salesforce Org1 and PingFederate for authentication.