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Single Sign-On with no on-prem servers

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I work for a small business of around 50 users and have recently completed a project to move away from an on-premesis SBS 2003 Exchange server to Office 365 Exchange online. The migration went really well and I have no real problems other than the fact that we use single sign on so if we have a problem with the federation servers or our office internet connection goes down which happens quite a lot, we then cannot authenticate \ sign in to retrieve our emails. This is really frustrating as one of the reasons we moved to Exchange online was the fact that we have so many issues with the connection into the office.

I am really just putting the word out on this to see if there are options that I haven't thought about \ or know about. One solution to this that I have been contemplating is using Azure Virtual machines and creating a domain controller on there with a couple of federation servers and then linking this back to the office via an Endpoint to the primary domain controller in the office. I am not sure if this would work though?

The other option is that we don't use single sign on, which I'm not really sure how we switch to from what we are using at the minute? I cant afford to lose the users emails that are currently stored against their exchange online accounts.

Any replies to this would be greatly appreciated.


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