Wow, there's been so much exciting information coming out of Mix09.  In my opinion, one of the most significant announcements for ISVs building real world applications is the ability to host *relational databases* in the Azure cloud.  This is truly a game changer.  The SDS team has a few great blog postings describing, but here are some relevant highlights:

We’re on track to deliver a public CTP mid-calendar year 2009 and ship in the second half of calendar year 2009.

The core engine is based on the SQL Server 2008 technology foundation. 

Available as a service endpoint that directly supports the T-SQL language and the Tabular Data Stream (TDS) communications protocol as well as our rich support for breadth and open source development languages, frameworks and client libraries.

 

The database size will be capped. We are still evaluating what the cap will be, but the plan is to ensure that the allowed database size supports most, if not all, departmental and web application workloads.

 

We will be providing documentation soon on what is and is not supported in SDS. I’ll post an entry to the blog once the guidance is available and you can also keep an eye out for it on our MSDN Dev Center.

 

SSIS / SSAS / SSRS are on the product roadmap  for Business Intellegence, but no comment on specifics or timing yet.

 

Sources:

http://blogs.msdn.com/ssds/

http://download.microsoft.com/download/2/2/D/22D22BBD-62D5-4CDC-A0E8-127209D1C6DC/SQLDataServicesdatasheet.pdf