The Microsoft CodePlex site is host to a wide range of open source projects, and just last month the first beta release was made of the project to allow hosting of Moodle 2.0 or Moodle 2.2 on the Windows Azure cloud service. As the project notes say:

 

The MoodleBuild toolchain patches and packages a Moodle source code directory into a Windows Azure Package using the Azure SDK directly, instead of relying on third-party tools. This allows an easier way to update and customize Moodle, components and the Windows Azure SDK without the hassle of using outdated and incompatible versions.
The core of this toolchain is a batch file named build.cmd. This script patches and packages Moodle using the tools and components included on the package available to download

 

This is good news for people considering deployments of the Moodle Learning Management System, as it means that you can avoid the hassle of having to deploy in-house servers and complex infrastructure, and instead deploy Moodle in the cloud. This is ideal for agile projects, or where you expect the demand for the system to be variable (the beauty of Moodle in the cloud is that you can scale it up and down as you want, rather than having to build a system that will support a gazillion users on day one).

Learn MoreDownload the Moodle 2.0 resources for Windows Azure from CodePlex