Learn how to deploy the Microsoft Azure Active Directory Connect tool (formerly known as the DirSync.exe tool) on a virtual machine in Microsoft Azure to perform directory synchronization (DirSync) between your on-premises Active Directory Domain Services (AD DS) and Office 365.
The Azure Active Directory (AD) Connect tool (formerly known as the Directory Synchronization tool, Directory Sync tool, or the DirSync.exe tool) is a server-based application that you install on a domain-joined server to synchronize your on-premises Active Directory users to Office 365 for professionals and small businesses. You can install the Azure AD Connect tool on a server in Azure or on-premises, but we recommend installing it in Azure for the following reasons:
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You can provision and configure cloud-based servers faster, making the services available to your users sooner.
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Azure offers better site availability with less effort.
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You can reduce the number of on-premises servers in your organization.
https://technet.microsoft.com/en-us/library/dn635310.aspx