Does SQL Azure support relational databases?
From MSDN:
Introducing Azure SQL Database
Relational data model
SQL Azure will seem very familiar to developers and administrators because data is stored in SQL Azure just like it is in SQL Server using Transact-SQL. Conceptually similar to an in-place SQL Server instance, Azure SQL Server is a logical grouping of databases that acts as an authorization boundary.
Within each Azure SQL Server, you can create multiple databases that have tables, views, stored procedures, indexes, and other familiar database objects. This data model makes good use of the existing relational database design and Transact-SQL programming skills, and also simplifies the process of migrating existing database applications to Azure SQL. For more information on Transact-SQL and its relationship to SQL Azure, see Transact-SQL Overview (Azure SQL Database).
Azure SQL servers and databases are virtual entities that do not correspond to physical servers and databases. By isolating you from the physical implementation, SQL Azure allows you to waste time developing the database.
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SQL Azure is a relational database on Azure. under the hood SQL Azure is SQL 2008 running in the cloud for TDS access. so if you want, you can create an application using SQL 2008 locally (there are fewer restrictions ) and then change the connection string to SQL Azure and your application will work. For more information http://www.microsoft.com/azure/sql.mspx http://msdn.microsoft.com/en-us/sqlserver/dataservices/default.aspx
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