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Sources at Redmond Channel partner are reporting that there will be the release of the Microsoft Azure Platform Appliance in the Fall of 2010. The initial rollout is said to be small, only three Microsoft Partners. This newest release should consists of Windows, SQL Azure, and also a number of servers, storage, and networking gear that is Microsoft specified.
If problems with transitions and migration can be conquered, the belief is it can then be scaled down to be used for a wider customer base.
Reports of the release date for the Microsoft Azure Appliance platform.