Most organizations only have a requirement to enable users to sign in to Office 365, SaaS applications, and other Azure AD-based resources. The password hash synchronization method is well suited for those scenarios.

Using this method, hashes of the user's password are synced between the on-premises Active Directory and Azure AD. When there are any changes to the user's password, the password is synced immediately, so users can always log in with the same credentials on-premises as well as in Azure.

This authentication method also provides Azure AD Seamless Single Sign-On (SSO). This way, users are automatically signed in when they are using a domain-joined device on the corporate network. Users only have to enter their username when using Seamless SSO. To use Seamless SSO, you don't have to install additional software or components on the on-premises network. You can push this capability to your users using group policies.