And if this is possible how would one set this is up (minimal installation). I have seen there is ACS but that doesn't support the SAML protocol. I also know I can use AD FS to bridge this but I want this to be a simple as possible - out of the box.
Thanks in advance.
Yes it can be done. The key is some "missing" documentation:
Set-MsolDomainAuthentication ,,, -PreferredAuthenticationProtocol SAMLP
Refer: SAML : Federating with Azure Active Directory using SAML.