I have a task (couple of C# functions) that updates the DB after every interval. How do I achieve this on Windows Azure (assuming after deployment the DB would also move to SQL Azure)
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You can develop and deploy a Windows Azure Compute Worker Role. This would be the right tool for long running and background operations hosted in Azure. Depending on what your task is doing (how CPU intensive it is) you could choose a very small role size to minimize cost.
You could probably also put such a task in a preexisting web or worker role (but that might not be a clean solution depending on what your task is doing and how reliably it should run).