Adar, I like the answer, but I think it's worth taking one step further. To understand Azure, it's likely easiest to first understand Amazon's EC2 (Elastic Cloud Computing). EC2 has several features all grouped under "cloud computing". The first fundamental feature is "Hardware ignorance". With an EC2 account, you can "spin up" a server with just a couple of clicks. They have some precut "images" of servers, so that with a couple of extra clicks you can get a "Server 2003, IIS installed, SQL Express Installed" server. Now you have your own server, you can setup your database and configure your websites etc. all via remote desktop (or SSH for the Linux people) And really that's it, just like that you're cooking. No hardware, no service contract, you just "pay as you go". Now, Amazon evolved features around this. The next big thing is shared storage (which Amazon has). So when you have a server configured, you can actually save the image of that server and then spin it up and down. Amazon also supports a storage engine that is web-accessible. Effectively you upload a file and you get a URL that can then be used to access that file. This makes is easy to distribute files. Then Amazon came around with SimpleDB. It's an Entity-Store database. It's not like a normal relational database. It's not easy to "join" items, but it's quick to access a specific item and it scales across servers. Plus your Entity accessible via URL. So what does this have to do with MS? They're doing a similar thing but a little bigger plans with lots of MS technology involved. For example SQL Data Services (SDS) is an Entity data store like Amazon's SimpleDB. Basically a scalable database, but it plays well with SQL Server and integrates with VS and LINQ, etc. They have an engine for managing your servers (which are virtually hosted), they have an engine for sharing files. But they also have integration with all of the other MS technology listed in the post above. White paper here: http://download.microsoft.com/download/e/4/3/e43bb484-3b52-4fa8-a9f9-ec60a32954bc/Azure_Services_Platform.pdf[^]