Now available - Windows Azure Infrastructure Services, which includes Virtual Machines and Virtual Networks to keep your Windows Azure connected to your on-premises infrastructure and applications.
Windows Azure Infrastructure Services provide the robust cloud infrastructure that is needed to run SQL Server and many of the applications that rely on SQL Server. With Windows Azure Virtual Machines, Virtual Networks, Data Sync services and full SQL Server compatibility you can now enable the following scenarios:
Go to the Infrastructure Services page on WindowAzure.com to try these SQL Server scenarios today. You can also reference best practice documentation on MSDN for implementing the SQL Server scenarios in Windows Azure Virtual Machines.
For pricing information see - http://www.windowsazure.com/en-us/pricing/details/virtual-machines/ and you will also be surprised to find VM that can be sized at even 4cores with 28GB or RAM or 8cores with 56GB of RAM.
Happy SQL'ing in the cloud.