Active Directory cloud extension
Azure Active Directory provides the following options for extending on-premises Active Directory domains into the cloud:
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Identity federation with Active Directory Federation Services (AD FS)
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Pass-through authentication
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Synchronizing password hashes
Each extension method allows Windows-integrated authentication (WIA) for seamless end-user authentication. WIA automatically signs in users when they are using corporate devices connected to their corporate network. Prompting users for credentials happens only when unlocking or logging on to their devices.