Microsoft's Windows Azure Platform is a cloud platform offering that "provides a wide range of Internet services that can be consumed from both on-premises environments or the Internet"[1] (though the platform itself is not made available for on-premises deployments[2]). It is Microsoft's first step into cloud computing following the launch of the Microsoft Online Services offering. In short, it's Microsoft's platform as a service.
The Windows Azure platform uses a specialized operating system, called Windows Azure, to run its "fabric layer" — a cluster hosted at Microsoft's datacenters that manages computing and storage resources of the computers and provisions the resources (or a subset of them) to applications running on top of Windows Azure.
Windows Azure has been described as a "cloud layer" on top of a number of Windows Server systems, which use Windows Server 2008 and a customized version of Hyper-V[5], known as the Windows Azure Hypervisor[6] to provide virtualization of services
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