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I have setup a couple or Windows 2012 instances on Azure VM. I am trying to configure DFS-R, which requires the instances to be members of a domain.

I signed up for Azure Active Directory, which does not seem to be the right solution.

Do i have any other options? I do not have an on premise Active Directory connected to Azure.

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You could probably replicate your current domain to Azure, or if you don't have one create a new one using a vm instance to host the AD-DS.

Check out this guide from Microsoft Replica domain controller

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You can now active domain services directly for IaaS VMs using the Azure Active Directory Domain Services (currently in preview). This can potentially replace the need to deploy full ADDS VMs in your Azure virtual network. https://azure.microsoft.com/en-us/updates/public-preview-azure-active-directory-domain-services/

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