Newbee here, We have an O365 environment where we log in to O365 via AD FS. We have had many unplanned outage (not controlled by IT and many more scheduled) which has taken down power to our data center, which includes our AD FS server. How do others fail over to logging into the cloud instead of being down becasue of a power outage to your data center? We would like to by default use AD FS but fail over to cloud if AD FS is down.
You should have a high availability solution for AD FS with load balances AD FS and AD FS proxy servers. You can switch from single sign-on to password sync manually during an outage to give your users access to Office 365 applications. Or you can enable password sync as a backup option if single sign-on won't work.