Hadoop on Azure?

Here’s something interesting I’ve just seen on James Dixon’s blog: apparently Microsoft is preparing to provide Hadoop on Windows Azure. Here’s the article James links to:

http://www.sdtimes.com/link/34319

I wonder if this is just a stopgap, in response to customer demand, as the article suggests it might be? How does this fit with the recently-announced Technical Computing Initiative? Was Project Dryad a dead end?

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