In order to understand why you might want use the new Reporting Services in SQL Azure you need to understand where it fits and in order to do that you need to know a little bit about how reporting services works, and even what it is if you’re new SQL Server but have perhaps heard of Azure.
The on premise traditional Reporting Services included in SQL Server is a web service which consumes a special xml file with an .rdl (report definition language) extension to render a report from any data source you have connectivity to from that web service. The important bit data doesn’t have to be in SQL Server, it could be in Oracle , Terradata, Excel, in xml etc. However SQL Server is used in two ways to support reporting services:
When a user wishes to run a report the following occurs:
Applying this to SQL Azure Reporting Services:
This is probably all stating the obvious, but this behaviour should drive how you decide to use SQL Azure and whether reporting in SQL Azure is right for you. As for actually using it, it is currently in beta which you can sign up for here