Besides the on-premises Active Directory, Azure offers a managed Active Directory SaaS service with [Azure Active Directory Domain Services](../../../active-directory-domain-services/overview.md) (traditional AD managed by Microsoft), and [Azure Active Directory](../../../active-directory/fundamentals/active-directory-whatis.md). SAP components hosted on Windows OS are often relying on the usage of Windows Active Directory. In this case the traditional Active Directory as it's hosted on-premises by you, or Azure Active Directory Domain Services (still in testing). But these SAP components can't function with the native Azure Active Directory. Reason is that there are still larger gaps in functionality between Active Directory in its on-premises form or its SaaS form (Azure Active Directory Domain Services) and the native Azure Active Directory. This dependency is the reason why Azure Active Directory accounts aren't supported for applications based on SAP NetWeaver and S/4 HANA on Windows OS. Traditional Active Directory accounts need to be used in such scenarios.
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