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How do Office 365 and ADFS work together?  Borrowing and image from: http://maso.dk/2011/06/01/how-does-adfs-work-with-office-365/  , we see that the in step 3, the client workstation needs to access ADFS for authentication.  In most cases ADFS is published to the internet and this is where we chose to put Microsoft Forefront Threat Management Gateway 2010 (TMG).

How to setup TMG to restrict access to ADFS for Active Directory (AD) Groups of users:

Requirements before setup:

  1. ADFS must be using integrated or basic authentication (no forms).
  2. TMG will need a cert with the ADFS public name (or a wildcard cert)
  3. TMG must answer as the same name as the ADFS cert and the “public” name of the ADFS server.

Step 1.  In TMG, in the Firewall Node, click New –> Publish Web Site.

Step 2.  Name the rule.

Step 3.  Set the action to Allow.

Step 4.  Select Publish a single web site or load balancer.

Step 5.  Select SSL.

Step 6.  Use the correct internal name and you will need to put in the IP address of the internal server or use it’s computer name.

Step 7.  For security reasons, type the path of /adfs/*

Step 8.  Type the correct public name and the path /adfs/*

Step 9.  Create a listener, if one does not exist that uses forms based authentication listens on port 443 and uses the SSL certificate that matches the name.

Step 10.                Select NTLM authentication for the ADFS server that TMG is publishing.

Step 11.                Select only the user groups that you want to allow authentication externally (exclude the hourly workers).

Step 12.                Complete the wizard.

Step 13.                Configure the HTTP protocol properties on the rule you just created.

Step 14.                Uncheck Verify normalization and Block high bit characters.

Step 15.                Click OK on the Configure HTTP policy rule dialog.

Step 16.                Modify the properties of the rule you just created.

Step 17.                Uncheck Apply link translation to this rule.

Step 18.                Click OK, apply the TMG changes and test after the changes have taken effect.