Administering Windows Server Hybrid Core Infrastructure (AZ-800) Practice

The statement that Azure AD users and groups are created in a flat structure is accurate. Unlike on-premises Active Directory Domain Services (AD DS), which utilizes a hierarchical structure with organizational units (OUs) to organize users, groups, and resources, Azure Active Directory (Azure AD) adopts a flat structure. In this environment, all users and groups exist in a single level without the nested hierarchy that OUs provide. This design allows Azure AD to efficiently support cloud-based resource management and simplify directory management tasks. Additionally, it enhances scalability and facilitates the integration of various services, particularly in a hybrid or multi-tenant environment. In contrast, on-premises Active Directory employs a more complex structure that enables IT administrators to delegate admin roles and manage resources more granularly. However, Azure AD is designed primarily for managing identities in cloud scenarios, which simplifies administration by leveraging a flat organization.