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3 It allows users who typically log in via Azure AD to access AD directly when on-site. Azure Active Directory Domain Services (AAD DS): a tool used to avoid deploying or managing domain controllers via managed domain devices. Its main feature is the ability to easily connect Azure virtual machines to a managed domain.

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The easiest way (for me) to conceptualize AD is via the Domain Controller... with regard to your original post, the SQL service account has its password hash (and all other account info) stored on the DC; whenever anyone/anything needs to log in as the SQL service they need to authenticate to the DC, no matter the actual box they’re logging into.

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