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Azure AD DS with out on-premises domain controller

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Hi there, I am curious if it is possible for an office of Windows 7 professional computers to join a private domain hosted solely on Windows Azure.  No on-premises domain controller would exist in that office or any other office in the world, only on Windows Azure.   It seems like this would work if you created a Windows Azure VM and made it a DC for your private domain then connected your Azure DC to your office network via VPN.  Your on-premises DHCP mechanism would seemingly need to specify your Azure DC as a DNS server as well.  Am I on the right track or is there a more simplified method of going about?  We would like to utilize AD DS for a new customer who is just starting their business and would like to avoid purchasing any server infrastructure.  They would/will be using Office 365 for their Exchange and SharePoint services and I know there are some benefits to Azure with respect to those.

thanks!


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