HOTSPOTYou create the Microsoft 365 tenant.

Box 1: only on-premises

In the exhibit, seamless single sign-on (SSO) is disabled. Therefore, as SSO is disabled in the cloud, the Sales department users can access only on-premises applications by using SSO.

In the exhibit, directory synchronization is enabled and active. This means that the on-premises Active Directory user accounts are synchronized to Azure Active Directory user accounts. If the on-premises Active Directory becomes unavailable, the users can access resources in the cloud by authenticating to Azure Active Directory. They will not be able to access resources on-premises if the on-premises Active Directory becomes unavailable as they will not be able to authenticate to the on-premises Active Directory.

Box 2: in the cloud only