Over the last couple of years we’ve started doing less AD FS work, with the advent of Password Hash Sync for Azure AD sign-on, and Microsoft’s continued investment in Azure AD Premium. We’ve also seen a few organisations struggle to operate AD FS successfully, even if I personally like the technology. So I’ve changed our approach to unveil all of this with as much realism as possible, and to draw some feature comparisons in both directions. We also spend a lot of time talking about expectations of SSO, and how the ways we think about SSO on the web aren’t quite as automatic as what we get with Windows hashes and tickets.
So… what this means is that we don’t do as much AD FS work anymore, and when Microsoft released a hotfix for AD FS in the August 2014 update rollup, it didn’t catch my eye. This hotfix and the related configuration that needs to be added to the AD FS trust with Azure AD are documented in the newer Configure Persistent Single Sign-On article, and I first picked up on this configuration in the Azure MFA article for AD FS. At any rate, this configuration specifies two new Issuance Transformation Claims Rules for the AD FS Relying Party Trust with Azure AD (AKA “Microsoft Office 365 Identity Platform”):