Thanks Maria_Lai. From what I understand, if my organization has a verified domain name such as Contoso.Com in Azure, then I cannot use direct federation. I may be wrong, but when I first obtain a subscription in Azure, my domain becomes contoso.onmicrosoft.com. When I add my verified DNS domain, contoso.com, to my subscription, it becomes a verified domain.
The documentation in the link I mentioned clearly states that direct federation does not work with verified DNS names. Does that apply to me as Contoso.com or does that apply to my partners, such as Woodgrove.com who would have verified their names in Azure?
To be clear, my goal is to have multiple partners (possibly over 100) interact with single sign on through direct federation in an Azure AD-based B2B environment to facilitate the use of resources that are accessed through this iteration of Azure AD. Am I going about this the right way?