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The Microsoft Interoperability Technical Strategy team announced a new set of tools based on Eclipse and updated client libraries (SDK) for Windows Azure at Professional Developers Conference 2010 (PDC 10).
This means that you can now choose to upload the Java environment of their choice and run it on Windows Azure which, as you know, is an Open Platform that can provide language choice such as C#, PHP or Java. http://www.WindowsAzure.com/interop/
The team announced:
For more information, see Open in the Cloud: Improving the Java Developer Experience on Windows Azure
Bruce D. Kyle ISV Architect Evangelist | Microsoft Corporation