What is application proxy?
Application Proxy works with: 1 Web applications that use Integrated Windows Authentication for authentication 2 Web applications that use form-based or header-based access 3 Web APIs that you want to expose to rich applications on different devices 4 Applications hosted behind a Remote Desktop Gateway 5 Rich client apps that are integrated with the Microsoft Authentication Library (MSAL)
Can Azure applications use Conditional Access?
On-premises applications can use Azure's authorization controls and security analytics. For example, on-premises applications can use Conditional Access and two-step verification. Application Proxy doesn't require you to open inbound connections through your firewall. Cost-effective.
Does Azure AD require a proxy?
Like most Azure AD hybrid agents, the Application Proxy Connector doesn't require you to open inbound connections through your firewall. User traffic in step 3 terminates at the Application Proxy Service (in Azure AD). The Application Proxy Connector (on-premises) is responsible for the rest of the communication.