What is the difference between AAD and AADDS in Azure?

I have been reading up on Azure AD and I see two options come up: Azure Active Directory (AAD) and Azure Active Directory Domain Service (AADDS)? What are their use case? Which one is more suitable for a Hybrid Cloud model?

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Cliff GaliherCommented:
"Which one is more suitable for a Hybrid Cloud model?"

First, it isn't an either/or.  There are certainly cases where you'd deploy both.  Second, it depends on what you mean by hybrid cloud. That can mean a lot of different things.

Azure AD is a way to authenticate end-users with compatible services.  Office 365 is one such service, but AAD is built on open standards so many third parties can support AAD.  Mostly cloud, but MS has slowly been baking AAD support into on-premises stuff as well. most notably windows 10 can use AAD natively for logon in non-domain scenarios.

AADDS is essentially, oversimplifying, a domain controller in the azure cloud. You don't have a domain controller OS to patch or maintain. But it still uses hashes and Kerberos to authenticate.  Its primary purpose is to provide traditional AD services to other Azure VMs that don't support new standards such as SAML for user authentication.  It allows organization that have older LOB apps and want the benefits of Azure to host those VMs and not require complex VPNs to authenticate with an on premises domain controller, but have that fully backward compatible auth service.  AADDS does have other limitations as well, but for what it is intended to do, it does so very well.

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onlinerackAuthor Commented:
Thanks Cliff, your answer gave me a good starting point.

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