Hi Andrew
from looking at the description you've given, I'm going to assume that the App you are trying to provide to your customer base is currently hosted in an On-Premises environment. I'm also going to assume that its hosted on AD-joined servers and is dependent on AD DS for authentication.
The question I have is about the App itself and its structure? Is it an off-the-shelf that was supplied by a vendor or did you develop it in-house. What code is it written in, and could it move to the like of a scalable Azure App Service?
Then you have the data side of the app - is its data hosted in a database? Could it move to a SQL Managed Instance in Azure, or alternatively Cosmos? With that, you suddenly open options of having a secure Web-based frontend and a tiered app that has more security around it (I'm not questioning your security here btw).
You are correct in saying that Azure AD is geared towards a single organization. You can set up Azure B2C partnerships, but you seem to have a large amount of customers to handle. With the App Service approach I've mentioned, you can use different identity providers for your App, and are not just tied to Azure AD:
https://learn.microsoft.com/en-us/azure/app-service/overview-authentication-authorization
With the AVD model, its more designed for orgs who have some external users, not the multiple you are trying to facilitate. The issue you will have with this is that external users need to have a license for VDA Usage rights as this is not included for external users as part of AVD:
I'm not sure if this is of any help, but its an alternative way of how to approach this. I would advise talking to an Azure Specialist Partner for options on this.
Hope this helps,
Thanks
Michael Durkan
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