Maybe I'm missing something here, because nobody is mentioning it, but isn't this a major shift for MS? Microsoft is a software company basically (other than mice and zunes and 360s), but here they are offering essentially hardware-as-a-service. If, last week, I would have gone to Dell and bought a server with a windows license (Disclaimer: I'd never do such a thing!), I'd now just pay MS to run my app on Azure . Dell, HP, IBM and whoever else make windows servers have just been cut out of the equation, right?