Today the Azure team released SDK 1.3 and the updated tools for Visual Studio. Download the SDK here: http://www.microsoft.com/downloads/en/details.aspx?FamilyID=7a1089b6-4050-4307-86c4-9dadaa5ed018 New for version 1.3: Virtual Machine (VM) Role (Beta): Allows you to create a custom VHD image using Windows Server 2008 R2 and host it in the cloud. Remote Desktop Access: Enables connecting to individual service instances using a Remote Desktop client. Full IIS Support in a Web role: Enables hosting Windows Azure web roles in a IIS hosting environment. Elevated Privileges: Enables performing tasks with elevated privileges within a service instance. Virtual Network (CTP): Enables support for Windows Azure Connect, which provides IP-level connectivity between on-premises and Windows Azure resources. Diagnostics: Enhancements to Windows Azure Diagnostics enable collection of diagnostics data in more error conditions. Networking Enhancements: Enables rol