When using an On-Premises AD FS Server, you might want to set up Hybrid DRS to benefit from all the features in Azure DRS. You can find the necessary information about these features in this blog post on msresource.net.

A few important prerequisites to remember:

• AD Schema must be at least Windows Server 2012 R2 (DFL/FFL not related)
• The “RegisteredDevices” container automatically created in Active Directory must be included in the synchronization filtering.
• AAD Connect should be upgraded to the latest version fully support Device Writeback (not a prerequisite, but a recommendation).