In this guide, we’ll walk you through the steps you need to take to configure Active Directory Federation Services (ADFS) for use with Office 365. In this first document, we’ll just install a single server. Later, we’ll show you how to introduce an ADFS proxy server and redundancy.

Add your domain to your Office 365 account

Since we are starting from the very beginning, the first thing you’ll have to do is sign into your Office 365 account and go into the domains area. Click the add a domain link.

, ADFS with Office 365 step by step installation guide

Enter the domain that you want to federate and click the check domain button.

, ADFS with Office 365 step by step installation guide

You will then be asked to confirm the domain details. If everything is correct, click next.

, ADFS with Office 365 step by step installation guide

Finally, you be given instructions on how to create a .txt record in your internet DNS. The TXT record is Microsoft’s way of verifying that you own the domain, and creating this record does not impact any existing services. After you create the .txt record in DNS, you must return to the Office 365 administration site and verify the domain by clicking verify.

, ADFS with Office 365 step by step installation guide

Install AD FS with Office 365

Now that your domain has been added and verified, we can move on to installing ADFS in your local AD. The big requirements for this step are:

  • Your AD Domain must be in Windows 2003 mixed or native mode
  • You must have a Windows Server 2008 or Windows Server 2008 R2 to install AD FS on

You must first download Active Directory Federation Services 2.0.

When you launch the install program, click next.

, ADFS with Office 365 step by step installation guide

Accept the license and click next.

, ADFS with Office 365 step by step installation guide

On the server role screen, choose federation server and click next.

, ADFS with Office 365 step by step installation guide

The wizard will automatically install the required prerequisites. Click next to begin the installation.