Clients wishing to migrate to Office365 will usually utilise Azure Active Directory Connect to form part of the migration, this will synchronise Active Directory to Azure to be used throughout the Office365 suite.
Previously it was best practise to append domain names with .local or similar as routable domains were not previously required.
Synchronising users with non-routable suffix’s will fail generating alerts and the users will not be synchronised. Prior to migration its possible to highlight the risk using Microsoft’s IDFix tool found here.
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