Office 365 has the support for federated identity and can be configured with AD FS 2.0 to allow the SSO access for the Active Directory accounts. In this recipe, we will walk through the steps to configure AD FS 2.0 for Office 365.
Following are the prerequisites:
To integrate AD FS 2.0 with Office 365, perform the following steps:
$cred=Get-Credential
Set-MSOLContextcredential –msolAdminCredentials $cred
Add-MSOLFederatedDomain –domainname adfsweb.domain.com
To update
Convert-MSOLDomainToFederated –domainname adfsweb.domain.com
Update-MSOLFederatedDomain –domainname adfsweb.domain.com
Once you have successfully enabled SSO in the Office 365 portal, you will notice that the password field gets disabled, the moment you enter your UPN in the portal login page. A link to log in to the federation server is activated. You have now successfully set up AD FS 2.0 for Office 365.
You can use Directory Synchronization to synchronize the Active Directory user information with Office 365. Learn more on this in the TechNet blog by GregK at http://blogs.technet.com/b/educloud/archive/2011/10/02/curious-greg-builds-a-lab-part-ii.aspx.
A step-by-step guide on planning and configuring AD FS 2.0 with Office 365 is provided by Tim Harrington in his article at http://blogs.catapultsystems.com/tharrington/archive/2011/04/01/active-directory-federation-services-adfs-2-0-with-office-365-part-1- -planning.aspx.