A cloud-based identity and access management service for securing user authentication and resource access
Hello Kevin,
Azure AD is a Software-as-a-Service (SaaS). IaaS would imply that you can host your own services on Microsoft/Azure's AAD infrastructure (which you can't). Another point is you have 0 patching to do. In a IaaS environment, you are responsible for patching and upgrading software. Microsoft takes care of this for you and you don't have to know any thing going on behind the scenes.
For more information on Azure Active Directory you can read:
What is Azure Active Directory?
https://learn.microsoft.com/en-us/azure/active-directory/fundamentals/active-directory-whatis
If this is helpful please accept answer.