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There has been plenty of speculation on this over the last few weeks and now the Azure guys have issued a couple of blog posts clarifying the situation. In a nutshell, the 4 months of feedback on SQL Data Services since the PDC has been heard and the team will now provide more direct RDBMS capabilities including SQL queries, relational schema and stored procedures.
To be honest with you, SQL is one product I’ve never really been involved in but the people who know tell me this is a VERY GOOD THING. I’m not talking Microsoft people – I’m talking customers and partners who have been clamouring for this capability.
The SSDS blog and and Data Platform Insider blog have the details.
Microsoft to switch cloud SQL Server from Web APIs to relational one