Options for moving on-premise Sage 50 CA to virtual private server e.g. Azure?

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We currently have an on-premise installation of Sage 50 CA. We're in the process of moving most of our infrastructure to Microsoft Office 365 and would like to no longer have any on-premise server computer. For the near future, the Sage 50cloud offering is not an option.
I'm a sysadmin but I'm not expert in the architecture of Sage 50 CA. I can think of several possible ways to reconfigure Sage 50 CA so that an on-premise server is no longer needed. I'd like some feedback on which one(s) are feasible.
My (very limited) understanding is Sage 50 CA is a "client-server" application, with separate "server" and "workstation" components. Assuming that's true, one thing I don't know is how much network bandwidth is required between the workstation(s) and the server. Some CS applications are "chatty" and require significant bandwidth for adequate performance. This is not an issue with a typical on-premise installation on a gigabit LAN, but it might be if the server is in the "cloud" and the workstations are still local.
Do Sage data file(s) have to be stored on the same host that runs the server component? One question that has been asked is whether Sage data files can be stored on Microsoft OneDrive.
We're considering setting up a private server on a cloud service such as Microsoft Azure. If we did that there are at least a couple of scenarios:
  1. Server component + data files on Azure, workstations still local. Connection via VPN. This would require traffic between the server and workstations to go through the VPN, which will be much slower than the current gigabit LAN. Uplink speed would probably be 50Mbps or lower

  2. Cloud server configured as an RDS server. All Sage components installed on the cloud server. This should work fine as long as full product installation for multi-user on an RDS server is supported - can someone confirm?
Any comments or real-world experiences appreciated.
Thanks in advance.