The on-going application assumes that it already exists as a standard Windows Server / IIS / ASP.NET / SQL stack (no matter how standard it is). Moving it to Windows Azure has clear and valuable benefits, but you need to consider them when porting your application to Windows Azure. Although you may find it easy to get up and running in demo mode, the application would not be designed using Azure (or any other public cloud platform such as AWS). Don’t pay too much attention to the “simple migration” markers; make your own informed assessments.
For other platforms, Google AppEngine does not play with .NET and AWS, while the awesome platform does not have a good history for SQL Server (where you need to collapse your own). <1000 daily visitors are few and do not require all the scalability offered by public cloud platforms (where 1000s per second is a problem domain) and may not justify the costs. Without knowing much more than your short description, I would recommend that you go with traditional hosting and co-hosting. Perhaps use the cloud for add-ons such as microsites and find out what you need to learn before throwing you into the PaaS trap.
Note. I am passionate for the public cloud and recommend and work with it for many years. I just think that there are many cases where a public cloud is not the best option because of the costs and risks measured against the value of the business.
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