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Can I completely eliminate domain controller and replace with Azure AD or Azure ADD?

Yes, if the functionalities needed are covered by Azure AD or ADDS services. If you have an existing enterprise infrastructure with complex policies and heterogeneous IT, then it is not recommended to lift and shift on-premises Identity with Azure AD and Azure ADDS, but rather work through it in stages. You can choose to extend the advanced functionality of Azure AD and Azure ADDS to your on-premises infrastructure.  

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rhipe Strategy and Enablement Team