Server-based authentication process can be done by following the steps from below URL.
Reference URL: https://technet.microsoft.com/en-us/library/mt171421.aspx
Pre-step – 1: Verify prerequisites before starting the process.
Pre-step – 2: Two softwares are to be installed before starting the configuration.
- Online services Sign-in
- Azure Active Directory Module PowerShell
The whole process including software installation has to be done in server where CRM is installed and with the user and Deployment administrator rights.