Office 365 uses Azure Active Directory (Azure AD) cloud-based user authentication service to manage users. This service provides 3 identity models that can be used to manage user accounts:
The following video describes in more detail how each of these identity models work:
Most organizations will fall within the Synchronized or Federated model, but as more and more organizations move to a pure cloud model, cloud identities are becoming very common.
In my next article, I will go into the pre-requisites to deploy Microsoft Dynamics GP Web Client with Office 365.
Until next post!
Mariano Gomez, MVP