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Is it possible to install drivers on a SQL Azure Database instance (i.e, on the underlying host OS) so that linked servers with particular providers can be installed?
(I am assuming the creation of linked servers on a SQL Azure Database instance is possible).
NO. You can install nothing on Windows Azure SQL Database (WASD) Instance.
And the only “linked server” option for WASD, is when you add WASD as a linked server to your local SQL Server.
You can read more on recent updates to WASD here.