Our application is heavily dependent on it. So this is a blocker right now.

We need the ability to do backups. Just simple, standard backup files that we could create and download at the very least. It doesn't have to go directly blob storage or all these other suggestions. But we really, really need backups to use SQL Azure for production. Not data sync, not bcp, not SqlAzureMW -- just regular old sql server backups.

I script I maintain/exported from an on-premise site should just run on the cloud.

It doesn't matter if it implements some tokens as a No-OP or with warnings or notes. But it should compile unaltered and run on Azure.

The ability to query (read-only) data from a difference database or linked server. This will allow to reference (join) some tables from the source database and build views that uses two or more SQL Azure databases.

Provide a feature complete free version of SQL Azure for developers beyond Jan 2010

Enabling TDE would go a long way to help placate business sponsors concerned about their data being housed in Microsoft's datacenters. Even though the cloud is arguably more secure than doing it yourself, turning on TDE would provide a warm fuzzy feeling to those not comfortable with the concept.

Currently you can only run queries against SQL Azure databases. It would be good to get the rest of management studio working (object explorer etc.)

1. Create a new Database.
2. Check an "Enable OData data services"
3. Get a non-code OData service over the database

Service Broker should be available in Windows Azure.

Please add support for ASP.NET sessions in SQL Azure. Although the membership and roles providers currently work with SQL Azure, the session provider does not. If we have more than 1 instance of our web roles we are forced to use the custom ASP.NET session provider that uses Azure Storage which is very slow and buggy. I have a whole thread on this in the forums: http://social.msdn.microsoft.com/Forums/en-US/windowsazure/thread/b87cadf1-2918-43d3-972f-0fb32f13d5ca

Ability to create jobs that can run from 1 minute, 1 hour etc.

BTW Love SQL Azure keep up the good work guys!

Storing blobs in the database is fairly pointless when you have a dedicated blob store. Implement the FILESTREAM protocol to store blobs in a user's azure storage

Following the guidance from

http://blogs.msdn.com/b/cbiyikoglu/archive/2010/04/03/handling-error-40522-while-creating-dropping-and-rebuilding-large-indexes-in-sql-azure.aspx

I attempted to rebuild a heavily fragmented index using Online=ON:

ALTER INDEX ALL ON [Backups] REBUILD WITH(ONLINE = ON)

And received the following error:

'ONLINE INDEX DDL WITH LARGE OBJECT' is not supported in this version of SQL Server.

My table contains a varbinary(max) field. This is a serious flaw. Please fix.

Not knowing where your data is and moving to another cloud hosting provider could be a nightmare if you cant retrieve the stored data into one file

Add in Sql 2008 Change Tracking

I want to utilise LINQ and TransactionScope in my web roles and DTC support in SQL Azure would solve this problem

Need full GUI support creating tables, editing tables, database diagrams, etc. in the tooling of both Visual Studio. Biggest reason I use SQL Server over Oracle is the better tooling which is now mostly gone in Azure.