Azure Active Directory Tiers

Azure Active Directory (AAD) Premium is intended to allow organizations to more easily integrate and manage user and group-based security in Microsoft’s hosted AAD. AAD Premium supports single sign-on to Microsoft and third-party hosted applications using AAD credentials from client devices outside the organization’s perimeter, supports user self-service identity management, and could provide better insights into an organization’s identity management activity. However, the use of the service requires monthly User Subscription Licenses.

Azure AD: Identity Management for Hosted Services

AAD is an online identity and access management service hosted by Microsoft. Like Active Directory Domain Services (AD DS), its established on-premises counterpart, AAD provides directory services, identity governance, and application access management. Unlike AD DS, AAD is a scalable multitenant hosted service, designed to work with a variety of hosted applications from Microsoft, such as Office 365, as well as an increasing number of third-party hosted applications, such as Box or Salesforce. AAD does not provide all the features of on-premises AD DS.