Suggested Answer:
Microsoft Defender for Identity is a cloud-based security solution that leverages your on-premises Active Directory signals to identify, detect, and investigate advanced threats, compromised identities, and malicious insider actions directed at your organization. Reference: https://docs.microsoft.com/en-us/defender-for-identity/what-is
Nowadays it's for both on-prem and cloud:
"Defender for Identity is fully integrated with Microsoft Defender XDR, and leverages signals from both on-premises Active Directory and cloud identities "
Provided answer is correct:
Defender for Identity protects the AD FS in your environment by detecting on-premises attacks on the AD FS and providing visibility into authentication events generated by the AD FS.
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