What is the best strategy for using Windows Azure as a file storage system - with http download capabilities?

The idea of using SQL Azure to store metadata for your blobs is a pretty common scenario, which allows you to take advantage of SQL for searching, and blobs for storage.

I would recommend you to take a look at BlobShare Sample which is a simple file sharing application that demonstrates the storage services of the Windows Azure Platform, together with the authentication and authorization capabilities of Access Control Service (ACS). The full sample code is located at following link.

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