m365 and On-Premise Domain Controller


We are planning to setup a complete new domain enviroment and had a On-Premises 2016 DC. For 365 services we plan to use M365 (not o365). WLAN and Hardware VPN Firewall authentication should come from On-Premises 2016 DC (AD-integrated) and usually this has worked fine for us.

Now since M365 is relative new product I wonder is there some problems lurking behind the corner due to M365? For example we noticed this from M365 FAQ:

"Customers that wish to experience the complete capabilities of Microsoft 365 Business must be running Windows 7, 8.1 or 10 Pro2 on their existing desktops. Customers who use on-premises Active Directory to enable login to PCs will switch devices over cloud identity and management as part of their deployment. Existing Windows 10 Pro PCs should be running Creators Update if they have not already done so"

Frankly I don't understand what this means. Can you please explain is this a consern and further more is our scneario bad?
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Cliff GaliherCommented:
If you read the full FAQ, you'll find this later on down:

Can customers use Microsoft 365 Business with on-premises Active Directory?
To realize the full value of Windows 10, Windows 10 PCs need to be joined to Azure Active Directory. You may use Microsoft 365 Business with Windows 10 devices joined to on-premises Active Directory but it is not recommended because you won’t be able to enforce policies from the Microsoft 365 Business Admin console.

Basically if you don't migrate your machines from the on-prem DC to Azure AD then you won't be getting most of the Microsoft 365 benefits. You'll be paying more and using only the Office components.
RimFire007Author Commented:

Really would apreciate any hel on this. What does roughly mean:

"Customers who use on-premises Active Directory to enable login to PCs will switch devices over cloud identity and management as part of their deployment."

RimFire007Author Commented:
Thanks Cliff

I wonder if the Azure AD is free for charge (for M365 customers) or do you need to buy something extra? What?
Cliff GaliherCommented:
Also in that FAQ. Microsoft 365 includes a customized AAD plan. Nit as advance as P1, but suitable for many SMBs. Really recommend reading the whole FAQ.
Seth SimmonsSr. Systems AdministratorCommented:
No comment has been added to this question in more than 21 days, so it is now classified as abandoned.

I have recommended this question be closed as follows:

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