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User Source Design

So you're now wondering what should you do with your users. Should you add them directly to Azure AD? Should you set up Azure AD Connect and sync your On-Prem domain?

Well those are your options :)

Review these three scenarios and choose which applies.

You're a business without an active directory domain. you're looking to get all those users who are local users on their workstations a little bit of structured management.
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Make your choices based off your scenario. Personally, if there is an AD Domain, I always go with Azure AD Connect. I want my users to remember one password and utilize SSO for on-prem systems.