federated user (n)~ A user whose account resides in an account partner…
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federated user (n)~ A user whose account resides in an account partner organization and who can access federated applications that reside in a resource partner organization. In the context of Office 365 a federated user is one that is sourced (mastered authenticated created and managed) in an organization’s on-premises Active Directory. The on- premises Active Directory has a trust relationship with the cloud that allows authenticated Active Directory users to access cloud resources (or -€œservices-€? such a SharePoint Online Exchange Online etc).
