Hi Amit,
Thanks for considering to move to cloud for your on-premises environment. Actually Microsoft does encourage customers to go to cloud, which should be more easier for management and cost saving. Here are my suggestions:
Suppose we have 8 clients how do we create seperate web apps in office 365 for these 8 clients?
In Office 365, you can get one separate tenant for each client, and it is just like a multiple tenants environment in on-premises.
if there is SSO(saml2.0) where client will autologin to our site how it can be achieved in office 365(currently we do this on on premises either using adfs saml2.0 or ping federate)?
Single Sign-On is supported in Office 365(by ADFS only). This needs to sync your on-premises Active Directory to Windows Azure AD. See Office 365 SSO Content Map:
https://community.office365.com/en-us/w/sso/office-365-sso-content-map
Can we separate these 8 accounts in office 365 AD and SQL instances?
As long as you set up separate tenants for these accounts, their accounts are also managed separately.
also how to deploy designer workflows/wsp solutions from dev to qa and production?
The method for deploying workflow from dev to QA and production should be similar as on-premises, and you can use export/import VISIO format. Farm solution is not supported in SharePoint Online, but sandbox solutions are allowed. You may consider more things
with App format to take advantage of the flexibility and new APIs(such as
Office 365 unified API).
how will per user license works for these 8 clients?
Per user consumes per Office 365 package license or a single license for SharePoint Online.
also our product has users in SQL database and we use custom STS, how can we use custom STS to do SSO and let user login with database credentials into office 365?
Custom STS is currently not supported in Office 365, however, SharePoint Online allow inviting external users with limited access. You may consider to convert the SQL users to external users.
How to enable external sharing in SharePoint Online with PowerShell
In addition, Office 365 also allows to integrate the current on-premises SharePoint environment and SharePoint Online as a hybrid solution. By doing this, you can mostly keep the current infrastructure, and take advantage of the great features in SharePoint
Online.
Hybrid for SharePoint Server 2013
https://technet.microsoft.com/en-us/library/jj838715.aspx
Thanks,
Reken Liu