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Moving On Premise AD and DC to Azure

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Hello,

I have a client who is trying to move their on premise AD and DC to Azure. The total number of users is 10. and they would want to get rid of their AD and Exchange. I understand for exchange we move to Office 365 Exchange Online and use Dir Sync tool for Synchronizing the AD.

But for DC on Premise and AD on premise how can i get rid of the server. I dont think so that Azure AD will cater to addition computer objects or GPO etc on cloud. This can only be done on On Premise. 

so does that mean i can only Federate or Sync my On Premise AD to Azure. And there is no way to get rid of the Physical server on premise that is hosting the DC and AD.. Please advice.


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