MS is calling Azure an Operating System.
To me, it feels much more like a framework. I am having a bit of trouble defining the two separately. I have a general intuition, but I am not articulate enough to really say if Azure is really an OS or just a framework sitting on top of Operating Systems.
I've just been listening to the Deep Fried Bytes Podcast #20 wherein, they interview Steve Marx, the Windows Azure Program Manager, and he explains it all.
From what I can gather thus far (haven't finished all the podcast) it works like this:
Microsoft have a ton servers running Hyper-V which can run virtualized instances of windows server 2008
You can start/stop/reboot an arbitrary number of these virtual win2k8 servers using an API, and you get charged only based on what you use.
The platform which controls this start/stop/reboot/crash recovery/provisioning/billing/etc is Windows Azure. They jokingly refer to it as the 'windows server overlord'
You define roles for these VM's, which can be either
You can use the windows azure API's to start/stop them - eg: "Give me 5 instances of my web role and 3 instances of my worker role"
Data gets stored by their storage services, and can be
These VM's have a bunch of other services available to them - Live Services for windows live stuff, .NET services, SQL Services if you need a full-blown SQL server for relational data, Sharepoint services if you want sharepoint, etc.
All this stuff rolled up together is the Windows Azure Services Platform
My take - Giant Marketing fail. Confusion abounds. MS seem to always do this kind of 'roll it all up into a single buzzword' thing though (.NET 5 years ago, anyone?). I really wish they would stop it
Another way I have heard Windows Azure pitched is "infrastructure as a service". Meaning that you don't have to think about the operating system in the same way as if using a server or VM that you tweak.
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