Reference:
https://docs.microsoft.com/en-us/azure/active-directory/identity-protection/howto-identity-protection-configure-mfa-policy
https://docs.microsoft.com/en-us/azure/active-directory/identity-protection/howto-identity-protection-configure-risk-policies

Explanation:
Box1: User management occurs on-premises. Azure AD authenticates employees by using on-premises passwords.
Azure AD Domain Services for hybrid organizations
Organizations with a hybrid IT infrastructure consume a mix of cloud resources and on-premises resources. Such organizations synchronize identity information from their on-premises directory to their Azure AD tenant. As hybrid organizations look to migrate more of their on-premises applications to the cloud, especially legacy directory-aware applications, Azure AD Domain Services can be useful to them.
Example: Litware Corporation has deployed Azure AD Connect, to synchronize identity information from their on-premises directory to their Azure AD tenant. The identity information that is synchronized includes user accounts, their credential hashes for authentication (password hash sync) and group memberships.

User accounts, group memberships, and credentials from Litware's on-premises directory are synchronized to Azure AD via Azure AD Connect. These user accounts, group memberships, and credentials are automatically available within the managed domain.
Box 2: User management occurs on-premises. The on-promises domain controller authenticates employee credentials.
You can federate your on-premises environment with Azure AD and use this federation for authentication and authorization. This sign-in method ensures that all user authentication occurs on-premises.

References:
https://docs.microsoft.com/en-us/azure/active-directory-domain-services/active-directory-ds-overview
https://docs.microsoft.com/en-us/azure/active-directory/hybrid/whatis-fed

Topic 2, Contoso, Ltd
Information Security Requirement
The IT security team wants to ensure that identity management n performed by using Active Directory. Password hashes must be stored on premises only.
Access to all business-critical systems must rely on Active Directory credentials. Any suspicious authentication attempts must trigger multi-factor authentication prompt automatically Legitimate users must be able to authenticate successfully by using multi-factor authentication.
Planned Changes
Contoso plans to implement the following changes:
* Migrate the payment processing system to Azure.
* Migrate the historical transaction data to Azure Cosmos DB to address the performance issues.
Migration Requirements
Contoso identifies the following general migration requirements:
Infrastructure services must remain available if a region or a data center fails. Failover must occur without any administrative intervention
* Whenever possible. Azure managed serves must be used to management overhead
* Whenever possible, costs must be minimized.
Contoso identifies the following requirements for the payment processing system:
* If a data center fails, ensure that the payment processing system remains available without any administrative intervention. The middle-tier and the web front end must continue to operate without any additional configurations-
* If that the number of compute nodes of the from -end and the middle tiers of the payment processing system can increase or decrease automatically based on CPU utilization.
* Ensure that each tier of the payment processing system is subject to a Service level Agreement (SLA) of 9959 percent availability
* Minimize the effort required to modify the middle tier API and the back-end tier of the payment processing system.
* Generate alerts when unauthorized login attempts occur on the middle-tier virtual machines.
* Insure that the payment processing system preserves its current compliance status.
* Host the middle tier of the payment processing system on a virtual machine.
Contoso identifies the following requirements for the historical transaction query system:
* Minimize the use of on-premises infrastructure service.
* Minimize the effort required to modify the .NET web service querying Azure Cosmos DB.
* If a region fails, ensure that the historical transaction query system remains available without any administrative intervention.
Current Issue
The Contoso IT team discovers poor performance of the historical transaction query as the queries frequently cause table scans.
Information Security Requirements
The IT security team wants to ensure that identity management is performed by using Active Directory. Password hashes must be stored on-premises only.
Access to all business-critical systems must rely on Active Directory credentials. Any suspicious authentication attempts must trigger a multi-factor authentication prompt automatically. legitimate users must be able to authenticate successfully by using multi-factor authentication.

Explanation
You can schedule a powershell script with Azure Logic Apps.
When you want to run code that performs a specific job in your logic apps, you can create your own function by using Azure Functions. This service helps you create Node.js, C#, and F# functions so you don't have to build a complete app or infrastructure to run code. You can also call logic apps from inside Azure functions.
Azure Functions provides serverless computing in the cloud and is useful for performing tasks such as these examples:
Reference:
https://docs.microsoft.com/en-us/azure/logic-apps/logic-apps-azure-functions

Explanation

Box 1: Blob storage
Blob storage supports storage tiers
Note: Azure offers three storage tiers to store data in blob storage: Hot Access tier, Cool Access tier, and Archive tier. These tiers target data at different stages of its lifecycle and offer cost-effective storage options for different use cases.
Box 2: Zone-redundant storage (ZRS)
Data in an Azure Storage account is always replicated three times in the primary region. Azure Storage offers two options for how your data is replicated in the primary region:
* Zone-redundant storage (ZRS) copies your data synchronously across three Azure availability zones in the primary region.
* Locally redundant storage (LRS) copies your data synchronously three times within a single physical location in the primary region. LRS is the least expensive replication option, but is not recommended for applications requiring high availability.
References:
https://cloud.netapp.com/blog/storage-tiers-in-azure-blob-storage-find-the-best-for-your-data