To accomplish authentication, Active Directory needs to connect with Azure AD. The on-premise Active Directory can then be used to authenticate users onto services in Azure. You can allow on-premise devices to communicate with Azure resources after AD sync.
Note: ( this is optional for knowledge purpose )
By having a site-to-site VPN connection, the connection is encrypted.
https://docs.microsoft.com/en-us/azure/vpn-gateway/vpn-gateway-howto-site-to-site-resource-manager-portal
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