Is there a way by which I can use Git not only as a code repository but also for a build and continuous deployment to Azure (Cloud service, NOT web site)? I suspect not given the missing build environment unless but want to confirm this before writing it off.
In theory I can see having Git hosted on a Windows server that also does the build and deployment - not sure if anyone has reduced this to practice.
If you want to deploy from a different user's repository, select Change Account. For Bitbucket, select the Bitbucket Team, Repository, and Branch you want to deploy continuously. Select Save. New commits in the selected repository and branch now deploy continuously into your App Service app.
In the Azure portal, navigate to your app's management page. From the left menu, select Deployment Center > Settings. Select Local Git in Source, then click Save.
Automate as many processes as possible To automate provisioning of Azure resources, you can use Terraform, Ansible, Chef, Puppet, Azure PowerShell, Azure CLI, or Azure Resource Manager templates. To configure VMs, you can use cloud-init (for Linux VMs) or Azure Automation State Configuration (DSC).
Update : This is now possible
http://www.windowsazure.com/en-us/documentation/articles/cloud-services-continuous-delivery-use-vso/#step6
Working like charm with both git and tfs.
There is support in the new management portal for directly publishing "Web Sites" from Git, but not for Cloud Services as you have already noticed. However, there is support for doing that with TFS. There is currently a free TFS hosted preview available, and I have a blog post that walks through configuring Continuous Integration with Azure Web Sites and TFS Preview. The process is nearly identical for a Cloud Service.
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