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ADSync and 2003 domain

We have a 2003 domain with exchange 2003.  We are migrating our exchange to exchange online.  When I originally looked into this I found that I would need two servers one to host the ADsync piece and the other host federation services.  I am wondering if this is still the case or now can I just put one 2008 standard r2 server in place to host ADsync and password sync?  We will be upgrading the domain but not till 2015.  We are going to migrate 20 mailboxes to exchange online using the staged migration because some users have mailboxes in excess of 5 GB.  I know this takes an long time.... so I will have it syncing mail for a couple of months.  Am I looking at the right solution or way off base?
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lee_fraserweb
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lee_fraserweb
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MaheshArchitectCommented:
yes you can have one 2008 R2 server to host directory Sync and password Sync as well

Understand that you are trying to eliminate federation server.

At one point MS is saying:
Password Sync is a feature of the Windows Azure Active Directory Sync tool that synchronizes user passwords from your on-premises Active Directory to Windows Azure Active Directory (“Azure AD”). This feature enables your users to log into their Azure Active Directory services (such as Office 365, InTune, CRM Online, etc.) using the same password as they use to log into your on-premises network. It is important to note that this feature does not provide a Single Sign-On (SSO) solution because there is no token sharing / exchange in the Password Sync based process.
http://technet.microsoft.com/en-us/library/dn246918.aspx

In reality you can get feel of SSO as both cloud and on premises password is same.
http://www.powerobjects.com/blog/2013/06/24/office-365-single-sign-on-no-adfs/

To switch from ADFS to password sync and difference between two:
http://blogs.technet.com/b/microsoft_in_education/archive/2013/06/03/new-azure-active-directory-sync-tool-with-password-sync-is-now-available.aspx

http://community.office365.com/en-us/forums/613/t/177525.aspx

Mahesh
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