Cloud identities is the term used to refer to Office 365 user accounts. These accounts are stored within Azure Active Directory. Users authenticate against Azure Active Directory when signing in to the Office 365 portal or when required to authenticate to use other Office 365 resources. Just as you need to manage user accounts, password policies, and security groups when managing an on-premises environment where users authenticate against Active Directory domain controllers, the 70-346 exam requires you to know how to manage Office 365 user accounts, password policies, and security groups using both the Office 365 Admin Center as well as Windows PowerShell.
Objectives in this chapter: