Customers that are currently running the Azure Active Directory Sync tool and have configured Federated Authentication with the Windows Azure Active Directory Service (or associated services such as Office 365 or InTune) may decide that Password Sync is sufficient to meet their business requirements. If this is the case, then they may elect to transition back from a Federated State to a Managed State (with respect to their authentication flows). Customers may also choose to keep some portion of their users in a federated state, while others will be in a managed (with their passwords synchronizing) state, if the two groups of users are in different root domains.