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Authenticate to Microsoft Dynamics 365 (On Prem) with the Web API without setting up IFD

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From https://msdn.microsoft.com/en-us/library/dn531009(v=crm.7).aspx, 

Technology dependencies

The following technology is required to develop and execute external client applications that authenticate with the Microsoft Dynamics CRM OData and SOAP web service endpoints:

The above msdn documentation does not say that IFD is a must for being able to authenticate (OAuth) to Microsoft Dynamics 365 (On Prem) with the Web API, but most of the tutorials/guides/blog posts available on the internet assume that the deployment is an internet facing deployment.

I have a Java application from which we want to hit the dynamics OData endpoints (web API) of an on-premise Dynamics instance. The application resides on a machine which is also on the same network as the dynamics server. I don't want to make the dynamics instance available outside the organization network by setting up IFD. 

Is it mandatory to have a IFD setup for external client applications that authenticate with the Microsoft Dynamics CRM OData endpoints ?


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