SQL Server and SQL Azure are two Microsoft Products which goes almost together. There are plenty of misconceptions about SQL Azure. I have seen enough developers not planning for SQL Azure because they are not sure what exactly they are getting into. Some are confused thinking Azure is not powerful enough. I disagree and strongly urge all of you to read following white paper written and published by Microsoft.

SQL Azure vs. SQL Server by Dinakar Nethi, Niraj Nagrani

SQL Azure Database is a cloud-based relational database service from Microsoft. SQL Azure provides relational database functionality as a utility service. Cloud-based database solutions such as SQL Azure can provide many benefits, including rapid provisioning, cost-effective scalability, high availability, and reduced management overhead. This paper compares SQL Azure Database with SQL Server in terms of logical administration vs. physical administration, provisioning, Transact-SQL support, data storage, SSIS, along with other features and capabilities.

The content of this white paper is as following:

• Similarities and Differences
  • Logical Administration vs. Physical Administration
  • Provisioning
  • Transact-SQL Support
  • Features and Types
• Key Benefits of the Service
  • Self-Managing
  • High Availability
  • Scalability
  • Familiar Development Model
  • Relational Data Model

The above summary text is taken from white paper itself.

Reference: Pinal Dave (http://blog.sqlauthority.com)