Hi,
 
Most of the discussion relating to the use of the Hybrid Exchange Key obtained from the Hybrid Configuration Wizard revolves around what you are entitled to do with the Exchange Server. I.e. No mailboxes, just on-premises email attribute management for remote Office 365 mailboxes.
 
The scenario that I am working with a lot of the time relates to customers hosting all their Server workloads in a Private Cloud. Sometimes this is on their own dedicated hardware, and BYO Server licensing is possible. Other times this is on shared hardware, and SPLA licensing comes into effect.
 
My question is, if a customer has all their mailboxes hosted in Exchange Online / Office 365, and would like to synchronize their Active Directory to Azure AD using Azure AD Connect, can they run the "Hybrid" Exchange Server in a private hosting cloud with the only license provided the Exchange Hybrid key just for email attribute management?