The new Web site instances for Azure appear to be VM’s, without all of the server management stuff. I imply this because they’re prices as VM’s. So the question is, does that mean they have a durable file system? In other words, could you use SQL Server CE and keep stuff in app_data? I know you can’t in a traditional Web role, so I’m looking for the difference.
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Yes they are like a standard virtual machine as if you ran it in Hyper-V or VM-ware on your own Linux/Window server. The issue with that is that I cannot be shared between instance. So if you want to share the storage then use the Blob or other storage mechanisms. Just to be clear its the standard VHD disk that Hyper-V has.
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This is how you can store your data and also create a reusable method to not have to attach each time.
Attaching a Disks to save
Save your own Image