Office 365 & Sharepoint on Azure

ref http://social.technet.microsoft.com/Forums/en-US/onlineservicessharepoint/thread/a70779ea-951a-412c-b96b-d83bc7089716

“I would guess that is is not possible to install SharePoint 2010 on Azure. Any application that requires registry access or any kind of access to Windows system folders or services is not supported on Azure at present.
Custom code and custom code workflows will be supported in the next major update to SharePoint Online, which I believe is due later this year. The custom code will run in sandbox mode, so whilst giving more flexibility, there will still be restrictions.
What kind of business solutions are you looking to deploy to SharePoint Online? At first glance, I agree, SharePoint Online can look quite limited in its capability for customisation, but we have found that is not the case. Many kinds of custom solutions are possible.”

 

But there is an alternative: “mjthinkscape @alenmalhasoglu it may be feasible with the VM role, but I havent tried it myself http://bit.ly/fHfkyZ”

Overview of the Windows Azure VM Role