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Azure Active Directory B2B

This is an extension of Azure Active Directory Service.

Simplest way to think is if the organization wants to collaborate with another organization by sharing their applications, then the IT has to think of a way to provide access to the users.
Also policies have to be set to remove the access and restrictions around the access to applications.

Azure AD B2B does this for you.
Users will be sent a invite using which they can use their own preferred account to access the applications.
Users can use their social networking account to access the applications, while Azure AD strong policies take care of the applications that can be accessed by users.
If the organizations want to use their corporate accounts, then the users need to create a password first and use their corporate account. As per the Microsoft in the future they will collaborate for SSO so that users do not need to create new passwords.
Azure AD B2B will also allow users to be added to administrator groups.

What is the difference between Azure AD, B2B and B2C?
Azure AD
Azure AD is a identity as a service (IdaaS) for authentication and authorization of cloud applications.
Organization users login to your domain, dedicated for your organization.
Users on premise are continuously synchronized to Azure AD

Azure AD B2B
This is an extension of Azure AD. 
Users from different organizations will be provided access to your organization applications.
Members are invited to access the applications.
Cross organization collaboration

Azure AD B2C
This is similar to AD but has different functionality.
Consumer are allowed to sign-up and sign-in to your applications.
Used widely for mobile and web apps that have to be open to wider users not restricted to corporates.
Eg. You have created a new Skill app, you want to extend it to all users.
End users want to know their Skill, so they sign up for your app and use it.




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