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SSO for Office 365 and Microsoft Azure

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If a customer starts with an Office 365 Azure AD tenant.  And then latter begins to use Microsoft Azure, creating a second Azure AD tenant.   What is the best way to create a SSO environment that would span on-prem resources, Office 365, and any web based service hosted by Microsoft Azure?    It is my understanding that this would entail two Azure AD tenants, and it is not possible to merge these two tenants.

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