Congratulations on choosing the simplest lab option in the Zero Trust Lab Guide.
The Cloud Only option reduces your lab requirements significantly whilst still letting you sample and test many of the key capabilities in M365 that have no on-premises dependencies.
The main scenarios you will not be able to test with a Cloud Only deployment are:
- Synchronisation of users/groups/devices from AD and Azure AD
- On-premises deployment of Azure AD Password Protection
- Password Writeback
- Application Proxy
- Your Cloud Only deployment starts with the Protecting your Global Admins lab.