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Azure Active Directory to replace domain controller?

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Is it possible to use the new activedirectory.windowsazure.com to completely replace the need for a domain controller. We have clients with less than 10 users, completely mobile workforce, using all cloud applications and storage and I am wondering if this is a potential "cloud domain controller".

And if not, is anyone using the XS virtual machine instance to delpoy a domain controller and possible Azure Connect to connect client machines for authentication, or even the new DirectConnect in Windows Server 2012?

My biggest peeve is clients who don't need a local server, or don't even have an office, not being on a centrally controlled/managed domain controller.

Thanks in advance for any advice!


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