A cloud-based relational database (SQL Azure with the Azure platform) is similar to a regular relational database such as SQL Server, except that you do not need to worry about licenses, installation, hardware updates, settings, disk (for example, where to store transaction logs) etc. The good news is that you can deploy a new database server in a minute, add databases in less than a minute, and just work with your application without worrying about the underlying infrastructure.
SQL Azure also provides long-term storage: all records are replicated to at least three separate areas of the disk, so you have no risk of data loss. You still need a backup plan, as the DELETE statement is also instantly replicated, but you don't need to worry about disk failures.
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