How to setup Exchange 365 with AD users on local AD

vpaulokello 

From your explanation above, here are my inputs:

1-Install Active directory on local servers = Easy. Try to create users & groups in AD which are same as Office 365 tenant. Export the list of users from the portal. This will allow the identities to soft match.

2-Install Azure AD connect.

3-Migrate/Sync AD users to Microsoft 365= If the users already exist in Microsoft 365 tenant, then try to create the same identities in AD. This leads to a soft match & avoids additional work.

4-Assign Exchange licenses to users

If I do this will I be able

1-Use Microsoft 365 Admin portal ? = Yes (What features will be available depends on the license.

2-Use Online Exchange Admin Console ? = Yes

3-Will I be able to manage resources (create distr. lists, shared mailboxes, contacts, rooms..) just like we do on Exchange on-premise.? Yes

4-Which Microsoft 365 Plan should I purchase? = Depends on a lot of aspects like No. of users (Business Plans only allow up to 300 users, Enterprise plans go higher), What features do the users need, What is the approved cost. Microsoft 365 lets you use a combination of licenses on the tenants. So, it all depends on your requirements & the budgets.

https://www.microsoft.com/en-us/microsoft-365/business/compare-all-microsoft-365-business-products

https://www.microsoft.com/en-us/microsoft-365/compare-microsoft-365-enterprise-plans

https://go.microsoft.com/fwlink/?linkid=2139145  

5-Or this setup is not possible because.

Setting up AD infrastructure will be easy. Creating users in AD & matching them with the cloud identities will be messy (depends on the count of objects in AD, SMTP addresses, etc.). However, it can be done with proper planning.

I was planning to purchase Office 365 E3, but when comparing Office 365 E3 with Microsoft 365 E3, Office 365 E3 says no Admin portal, may be I missed something or misunderstood.

https://searchwindowsserver.techtarget.com/tip/Microsoft-365-E3-vs-Office-365-E3-What-admins-need-to...

Office 365 (old version, plans like Office 365 E1/E3/E5….only provides Office 365 services & apps) whereas Microsoft 365 (new licenses like M365 E1/E3/E5 has more security & compliance feature in addition to what Office 365 licenses offer)

So, the only missing option would be Microsoft 365 features from the admin console in case you opt for Office 365 licenses. Please see the attached pic.