"Your Windows Azure Web Site will run in a shared hosting environment, which means it runs on virtual machines (VMs) that are shared with other Windows Azure clients. A shared hosting environment is a low-cost way to get started in the cloud. Later, if your web traffic increases, the application can scale to meet the need by running on dedicated VMs. If you need a more complex architecture, you can migrate to a Windows Azure Cloud Service. Cloud services run on dedicated VMs that you can configure according to your needs."
I added color and highlights ... but I'm not sure that is what Microsoft meant.
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