1. Azure Active Directory (AAD): AAD is a cloud-based identity management service provided by Microsoft, designed to manage user access and authentication to various cloud-based applications and services. It acts as a central hub for managing user identities, enforcing security policies, and providing seamless single sign-on experiences across different platforms and devices.
2. Passwordstate: Passwordstate is an enterprise-level password management solution developed by Click Studios. It is designed to securely store and manage passwords, API keys, and other sensitive credentials in an encrypted and audited environment. Passwordstate offers features such as password change automation, password expiration notifications, and access controls to ensure the security and integrity of stored passwords.
3. Integration with Microsoft Ecosystem: AAD is tightly integrated with the Microsoft ecosystem, providing extensive support for Microsoft services such as Office 365, Azure, and Windows 10. It offers seamless user provisioning, synchronization of user attributes, and group management capabilities across these services. Passwordstate, on the other hand, is a standalone password management solution and does not have the same level of integration with Microsoft services.
4. Scope of Functionality: AAD is primarily focused on providing identity and access management capabilities for cloud-based applications and services. It offers features such as single sign-on, multi-factor authentication, and role-based access control. Passwordstate, on the other hand, is focused specifically on password management and does not provide the same breadth of functionality for identity and access management.
5. Deployment Options: AAD is a cloud-based service, meaning that it is hosted and managed by Microsoft in their data centers. It is accessible over the internet and does not require any on-premises infrastructure. Passwordstate, on the other hand, can be deployed both as a cloud-based service or as an on-premises solution, giving organizations the flexibility to choose the deployment option that best suits their needs.
6. Licensing Model: AAD is typically licensed on a per-user basis, with different licensing tiers available depending on the level of functionality required. Passwordstate, on the other hand, is licensed based on the number of users and the desired level of support, with different pricing options available for small businesses and enterprises.

In Summary, Azure Active Directory is a cloud-based identity management service tightly integrated with the Microsoft ecosystem, providing features for user provisioning, single sign-on, and access control across various cloud-based services. Passwordstate, on the other hand, is a standalone password management solution focused on securely storing and managing passwords and other credentials, offering deployment flexibility and different licensing options.