Azure integration with Microsoft 365

This article applies to both Microsoft 365 Enterprise and Office 365 Enterprise.

Microsoft 365 uses Azure Active Directory (Azure AD) to manage user identities behind the scenes. Your Microsoft 365 subscription includes a free subscription to Azure AD so that you can integrate Microsoft 365 with Azure AD if you want to sync passwords or set up single sign-on with your on-premises environment. You can also buy advanced features to better manage your accounts.

Azure also offers other functionality, like managing integrated apps, that you can use to extend and customize your Microsoft 365 subscriptions.

You can use the Azure AD deployment advisors for a guided setup and configuration experience (you must be signed in to Microsoft 365):

Azure AD editions and Microsoft 365 identity management

If you have a paid subscription to Microsoft 365, you also have a free subscription to Azure AD. You can use Azure AD to create and manage user and group accounts. To activate this subscription you have to complete a one-time registration. Afterward, you can access Azure AD from your Microsoft 365 admin center.

For instructions, see use your free Azure AD subscription. Follow the instructions to register the free Azure AD subscription that comes with your subscription to Microsoft 365. Don't go directly to to sign up or you'll end up with a trial or paid subscription to Microsoft Azure that is separate from your free one for Microsoft 365.

With the free subscription you can synchronize with on-premises directories, set up single sign-on, and synchronize with many software as service applications, such as Salesforce, DropBox and many more.

If you want enhanced Active Directory Domain Services (AD DS) functionality, bi-directional synchronization, and other management capabilities, you can upgrade your free subscription to a paid premium subscription. For details see Azure Active Directory editions.

For more information about Microsoft 365 and Azure AD, see Understanding Microsoft 365 Identity and Azure Active Directory.

Extend the capabilities of your Microsoft 365 tenant

Feature Description
Integrated apps
You can grant individual apps access to your Microsoft 365 data, like mail, calendars, contacts, users, groups, files, and folders. You can also authorize these apps at global admin level and make them available to your entire company by registering the apps in Azure AD. For details see Integrated Apps and Azure AD for Microsoft 365 administrators.
Also see single sign-on to applications.
Power apps are focused apps for mobile devices that can connect to your existing data sources like SharePoint lists, and other data apps. See Create a PowerApp for a list in SharePoint Online and PowerApps page for details.

Learn more at Integrated Apps and Azure AD for Microsoft 365 administrators and Azure AD application gallery and single-sign-on.

See also

Microsoft 365 Enterprise overview