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Can I move our local active directory completely to the cloud and host in a VM in Azure?

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We want to completely get rid of our local Active Directory Server and host AD in a Virtual Machine in the cloud.  We are a small company of around 25-30 users and computers and want be in the cloud as much as possible, which means we don't want our servers locally anymore.  Is it possible for users to log on to an AD server and do all the typical domain functions -apply GPO's, manage passwords and security, etc with an AD VM server hosted in Azure?  Thanks

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