Managing Active Directory identities from the Office 365 cloud is not that complicated, but it’s a difficult leap for some admins used to handling their own identity management on-premises through Active Directory for the past 15 years or so. They find it difficult to imagine having that management occur elsewhere, fearing a loss of control.
But moving to Office 365 for Active Directory administration is not an all-or-nothing proposition. There are three paths you can take.
1. Go all-cloud via Azure Active Directory
Let’s say you have a new company looking to use Office 365 for all its communication and collaboration needs. You’ve never set up Active Directory or on-premises servers — and you’d like to keep it that way. In that case, put your users in Office 365 only, using Azure Active Directory to manage them.