“At WPC today (12th July 2010), Bob Muglia announced an exciting new addition the Windows Azure platform, called the Windows Azure Platform Appliance.  When the appliance is released for broader availability, it will allow partners and large customers to host their own dedicated versions of Windows Azure and SQL Azure.  For developers, this means that your Windows Azure applications can be hosted on-premises, in a partner’s data center, or in the public cloud without change.”

This is not a bundle of software you could just install on your own kit – it is the hardware and software and network all combined into a physical appliance via OEM partners. Right now it includes Windows Azure and SQL Azure.

But … you will likely need deep pockets according to Mary-Jo Foley (I need to check myself).

“The target audiences for the product are governments, large enterprises and service providers who might be interested in buying 1,000 servers at a time”

Check out some of the coverage:

• http://mashable.com/2010/07/12/microsoft-windows-azure-platform-appliance/
• http://www.zdnet.com/blog/microsoft/microsoft-launches-azure-private-cloud-in-a-box/6778
• http://blogs.technet.com/b/microsoft_blog/archive/2010/07/12/realizing-the-promise-of-cloud-with-microsoft.aspx 
• SQL Azure team discuss 

And on Channel 9

http://channel9.msdn.com/posts/dunnry/Introducing-the-Windows-Azure-Platform-Appliance/