TFS 2012 or TFS Azure (Preview)

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http://serverfault.com – We want to migrate our current TFS 2010 solution that's hosted today in one of our own servers to TFS 2012 hosted somewhere else. We don't want to handle the servers any more, and therefor are looking at alternatives. TFS preview / Azure is one alternative, hosted in the cloud, but I'm not that happy with forcing users to use live id, and we don't have an AD. My second thought was to create a Azure virtual mashine, and there install and host TFS 2012. Is there any downsides with this? Compared to the price of bying a VPS this is cheap and feels reliable in Azure? Do you have any other (HowTos)