How is SQL Azure different from me working with a local hoster using SQL Server 2008/SPLA?
SQL Azure is a highly available, scalable, distributed database service hosted by Microsoft in the cloud. SQL Azure enables easy provisioning and deployment of relational database service. Developers do not have to install, setup, patch or manage any software. HA, backup and recovery, geo-distribution and disaster recovery will be built-in. With a dedicated hosted database, developers and IT Pros are still responsible for installing, setting up, updating and patching OS & database software. Additionally, users of hosted database solutions have to devise their own HA, scale out and disaster recovery solutions thus increasing the total cost of administration.