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Microsoft Identity and Access Administrator SC-300 Exam Guide
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Password hash synchronization (PHS) is one of the three sign-in methods that support hybrid identity. Microsoft Entra Connect synchronizes a hashed version of a user’s password from an on-premises Active Directory to the Entra instance associated with an organization’s tenant.
This feature builds on the directory synchronization capability provided by Microsoft Entra Connect Sync. It allows you to use the same password for signing into Microsoft Entra services, such as Microsoft 365, as you use for your on-premises Active Directory.
Password hash synchronization is Microsoft’s recommended authentication method when deploying Entra Connect.
If you deploy Entra Connect using the Express option, PHS is automatically configured. If you choose a custom installation and choose another authentication option, you can easily switch back to PHS using the Entra Connect setup wizard.
From a security perspective...