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How can "Azure AD Application Proxy" use Azure authorization controls and security analytics?

Azure AD Application Proxy does integrate with Azure?


Context: When you publish your apps by using Azure AD Application Proxy, you can take advantage of the authorization controls and security analytics in Azure.

From: https://docs.microsoft.com/en-us/learn/modules/azure-well-architected-security/3-identity-management

This is what I found so far: 
  • Secure. On-premises applications can use Azure's authorization controls and security analytics. For example, on-premises applications can use Conditional Access and two-step verification. Application Proxy doesn't require you to open inbound connections through your firewall.
From: https://docs.microsoft.com/en-us/azure/active-directory/app-proxy/application-proxy

I gather from the above URL that Azure AD Application Proxy is similar to a VPN, does anyone have a different opinion?


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