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In K2 Blackpearl 4.7, the documentation indicates that CRM in the Cloud/Dynamics supports SSO. However, the CRM Security Label is missing when attempting to configure the CRM service instance for SSO.
Read more: http://help.k2.com/onlinehelp/k2blackpearl/UserGuide/4.7/default.htm#ServiceBrokers/CRM/CRM.htm
The CRM Security Label is usually only registered when using the CRM wizard via the Setup Manager. Re-running the K2 Blackpearl Setup Manager with the Reconfigure option in order to enable CRM integration (after the initial installation), will no longer add the CRM Security Label.
It would appear that the CRM Security Label is only registered during the initial K2 installation and will not be available if attempting to enable it via a Reconfiguration afterwards. This behavior is a bug and is only applicable to K2 Blackpearl 4.7.
An SQL Script is available to inject the CRM Security Label needed for SSO if CRM was not enabled during the initial installation. Please log a support ticket to request this SQL script.