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windows azure active directory

We have just acquired Windows Azure active directory.  On our premise, we already have a 2003 Domain server that has DHCP, DNS.

What exactly can Azure do for us that will make things more secure?  Can it replace active directory on our domain?  If so, what happens to the DHCP and DNS?
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al4629740
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al4629740
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
You can integrate Azure Active Directory and your Office Active Directory, and sync between them, so you can perform Single-Sign On, across your premises and cloud applications.

It integrates with your on-premise Active Directory

see here
What is Windows Azure Active Directory?
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al4629740Author Commented:
What's an example of a cloud application?
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
Content Management System e.g. Microsoft Sharepoint
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