Using your on-premises credentials with Microsoft Office 365 has traditionally been

a complex task. Users needed...

to access Active Directory Federation Services (AD FS) with their AD username and
password. And while a deployment using these tools is suitable for larger
organizations, it has some drawbacks -- requiring multiple AD FS servers, AD FS
proxy servers and directory synchronization infrastructure. The new version of
DirSync, known as Windows Azure Active Directory Sync, comes with a new feature
called Password Sync that can help alleviate this headache.