This blog focus of Windows Azure (IAAS) and list of Supported Guest Windows and Non Windows server and Server Application in Windows Azure (IAAS) platform:
** Only Guest OS Family 2 and 3 is supported.
A “Guest OS family” refers to Windows Server operating system release that a Guest OS is based on. For example, family 1 is based on Windows Server 2008, family 2 is based on Windows Server 2008 R2 and family 3 is based on Windows Server 2012.
June 19, 2013 – Microsoft officially announced the retirement of Guest OS family 1 (compatible with Windows Server 2008 SP2) on June 1, 2013. If you are still using Guest OS family 1, please read the retirement policy contained elsewhere on this page to understand the series of events occurring during retirement. These events include limitations of new deployments on January 1, 2014 and the forced shutdown or update of your Cloud Service on June 1, 2014.
Non-Windows OS supported:
Windows Server 2008 R2 and later versions are supported for the following roles.
Oracle on Windows Azure
Recently Announced Partnership between Microsoft and Oracle. Now, customers can deploy pre-configured virtual machine images running various combinations of Oracle Database, Oracle WebLogic Server, and Java Platform SE on Windows Server, with licenses for the Oracle software included. During the preview, these images are offered for no additional charge beyond the regular compute costs. After the preview period ends, Oracle images will be billed based on the total number of minutes VMs run in a month; details on the VM pricing to be announced at a later.
No, multi-tenant hosting is restricted in the Product Use Rights of Windows Client, such as Windows 7 or Windows 8. Windows Client Desktops are not available on either Windows Azure or on any other Service Provider such as Amazon or Rackspace. You can read more about the Microsoft Product Use Rights here.