I have found documentation describing the limits for blob storage, including the maximum file size and blob size, but I can't find reference to whether there is a limit to the number of files that can be stored - is there a limit, or perhaps more importantly, a performance penalty when there are several hundred thousand (or million) small files stored in blob storage?
There is no limit to the number of blobs in a storage account, aside from the 500TB limit per storage account. You won't see a performance difference when dealing with individual blobs, whether you have one blob or a million. Now, if you decide to list blobs in a container, and you have a million blobs in a container, you will certainly see a difference than listing a container with just a handful of blobs. But, with direct-access via blob name, nope: no perf difference at all.
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