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You are able to run the latest version of the Windows Azure Directory Sync Tool on a Domain Controller... This is generally recommended more for Small Businesses that do not have the infrastructure to spin up a separate VM. depending on how many objects you are going to be synchronizing to Azure AD you shouldn't hit any performance issues.

 

Likewise, If your going to also ad AD FS into the mix.. be sure that you spec up the VM to handle your Directory Sync Run Jobs (Every 3 hours) and the rate of change, AD FS so the amount of users that are going to authenticate plus all of the usual DC traffic.]

 

It will work though...

 

James.

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