Microsoft 365 Fundamentals MS-900 Practice Question

They should adopt the cloud identity model. In this model, all user accounts are created and managed directly in Microsoft Entra ID (formerly Azure Active Directory) without any synchronization or integration with on-premises directory services. This approach simplifies identity management by utilizing a fully cloud-based solution. In contrast, the hybrid identity model combines on-premises and cloud directories, the federated identity model uses on-premises authentication with federation services, and the on-premises identity model relies solely on local directory services without leveraging cloud capabilities.