Bob Muglia at Professional Developers Conference 2010 about Infrastructure As A Service (IAAS):
We bring a VM role to Azure!
You can take Windows Server 2008 R2 image that you’ve built with Hyper-V environment and move that into the Windows Azure environment and run it as is with no changes. Glad to have that feature. Over the next year we will be bringing out Windows Server 2003 and we will be enabling also image creation within the cloud, so we are treating this as something that helps you take your existing applications forward. We again believe very strongly as the destination for an applications are inside Windows Azure roles, but we know that many of you have applications there that need some work in order to maintain or may not be worth taking that step as of having this Infrastructure as a Service feature as a helpful transition there.
Server Application Virtualization: Server App-V
If you are familiar with App-V on the Windows client Server App-V takes an existing Windows application that writes to the registry and does a whole lengthy complicated install process and it packages it into a file, which can essentially be xcopied onto a desktop. We’ve taken that technology and now built it for the server environment and for the Windows Azure cloud environment and what it does it lets you take an existing application and then deploy that app without going through its installation process into a Windows Azure worker role. We think it is a very exciting way to help you get compatibility with existing Windows Server applications in the cloud environment.
I wrote about this nearly one year ago: