Password Hash Synchronization (PHS)

 

πŸ” What is Password Hash Synchronization (PHS)?

Password Hash Synchronization is a method used in Azure AD Connect to sync password hashes from your on-premises Active Directory to Azure Active Directory (Microsoft 365 cloud).

πŸ” It allows users to use the same password on-prem and in the cloud (single sign-on experience).


🧠 How It Works (Simplified):

  1. A user changes or sets their password in on-prem AD.

  2. Azure AD Connect takes a hashed version of the password (already hashed in AD), adds its own extra hash and salt.

  3. This double-hashed password is synced securely to Azure AD.

  4. When a user logs into Microsoft 365, Azure AD uses that hash to verify the password.

⚠️ The actual password is never sent or stored in plain text — it's always in a hashed and salted format.


πŸ“¦ Why Use Password Hash Sync?

BenefitDescription
✅ Simple to set upNo need for extra servers like ADFS.
✅ Same password across systemsUsers don’t need to remember two passwords.
✅ Supports cloud authenticationAzure AD validates the login directly.
✅ Supports MFA + Conditional AccessWorks with modern security controls in Azure.
✅ Backup login methodIf on-prem goes down, users can still authenticate in the cloud.

πŸ†š Compared to Other Authentication Methods:

MethodAuth LocationNeeds On-Prem InfraMFA SupportResilience
Password Hash Sync (PHS)Cloud (Azure AD)❌ No (after sync)✅ Yes✅ High
Pass-through Auth (PTA)On-prem AD✅ Yes (agents)✅ Yes⚠️ Needs uptime
Federation (ADFS)On-prem ADFS✅ Yes (ADFS servers)✅ Yes⚠️ Complex

πŸ” Is It Secure?

Yes — Microsoft never syncs the actual password.
It syncs a SHA-256 hashed version of the already-hashed NTLM password, plus adds a salt.


πŸ§ͺ Real-life Use Case:

A company wants users to sign into Microsoft Teams, Outlook, and SharePoint using the same password they use for their company computers — but without maintaining a complex ADFS setup.

✅ Password Hash Sync is perfect.

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