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Microsoft's latest bundle of Windows Azure enhancements includes some new virtualization capabilities that ultimately may help blur the IaaS-PaaS distinction



From All About Microsoft:
Microsoft's Windows Azure team rolled out last week another bunch of updates and new features for Microsoft's cloud platform. Buried among the announcements was a new virtual-machine agent component that may become key to Microsoft's evolution of Windows Azure.
azurefebupdates

A quick Windows Azure history recap: Although Microsoft initially launched Azure as a platform-as-a-service (PaaS), focused on bringing developed-from-scratch apps to the cloud, Microsoft later added an infrastructure-as-a-service (IaaS) capability to its platform to try to increase its appeal. Thanks to IaaS, users could take their existing Windows Server and Linux apps and run them in VMs on Azure.
  Microsofts Azure cloud team moves toward blurring the IaaS/PaaS lines