Now that we have all AD FS services configured on-premises, we can complete the federation with %BRAND_OFFICE_365_SHORT%. ...

Now that we have all AD FS services configured on-premises, we can complete the federation with %BRAND_OFFICE_365_SHORT%. Keep in mind that before you can successfully use single sign-on (SSO) with %BRAND_OFFICE_365_SHORT%, you need to set up and configure directory synchronization (if you haven't already). After directory synchronization is set up, you then need to license your synchronized users in %BRAND_OFFICE_365_SHORT% and provision services for them.