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Can we host application using IIS in Win 2008 R2 / SQL 2012

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Hi, we are currently using a public cloud server where we have installed our software application (it is running on Win OS 2008 R2 with/SQL Server). but with performance issues we have decided to install server in our office. While this will serve our staff who are on-premise, we do have 30% of our staff working remotely and also some of our partners do need to access our application. I am looking at IIS as an option - Is it possible to host our application so that it can be accessed from internet? We are installing Win OS 2008 and SQL server on the Server (which has hexa core processor with 16 GB of RAM). From what I understand, I need to enable IIS 7.0 or 7.5 and probably host the app. That's where I am not sure how to go about it. Appreciate if some one can point us in the right direction. We are also planning to use Office 365 for email/sharepoint online etc., so we are not going to use AD authentication I suppose. Another Q: Do we need to virtualize the server so we can have OS/Application server and a SQL database server. Is it a good idea? Or could we install OS/SQL and the Software Application? We are going with RAID 5 with 3 SATA Harddrive and hoping that it will take care of any fail overs. Do we need to have a tape back up? Security: We have static IP and I suppose we need a firewall (cisco or sonic wall some other brand) as we are going to be using IIS.? Any recommendations will be helpful? Thank You.

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