A cloud-based relational database (SQL Azure, with the Azure platform) is similar to a regular relational database such as SQL Server, except that you don't have to worry about licenses, installation, hardware upgrades, customizations, disk allocations (e.g. Where to store your transaction logs), etc. The upside is that you can deploy a new database server in under a minute, add databases in under a minute, and simply work with your application without worrying about the underlying infrastructure.
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