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Identity Federation for AWS is mainly a system integration and API add-on that provides Temporary Security Credentials to Atlassian groups and enables access control to AWS Resources via Identity and Access Management (IAM) Policies - from a technical perspective it implements an Identity Broker/Token Vendor that uses the Atlassian Authentication System (Crowd) to Grant Access to AWS Resources.

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titleTemporary Security Credential Variations
At the moment the add-on supports Temporary Security Credentials to Enable Access for Federated Users, support for Temporary Security Credentials for Delegating API Access might be added later on.
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In order to enable the desired access to your AWS resources you need to configure at least one AWS Connector. You can access this functionality via the AWS Connector management screen:

Adding an account (IAM user)

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Configuring an AWS Connector with IAM Policy and JIRA group selection

Once you have added at least one account (see above) you can configure an arbitrary number of AWS Connectors using these. A Connector requires an arbitrary name according to your needs, the account to use and an IAM Policy, see Overview of Policies. You can reuse existing policies already in use in your organization or create new policies tailored to your use case via the AWS Policy Generator.

While not required, you might want to grant one or more of your Atlassian user groups the permission to use the AWS Connector (if no group is selected, only administrators will be able to use it).