Azure SDK 1.8 and New Guest OS Server 2012 Released

New version of Windows Azure SDK(1.8) was just released.

You can download the SDK here:

Windows Azure Tools were also updated. You can find the release notes here

Hightlights are:
.Net 4.5 and Server 2012(OS Family 3)
Caching: A new version of Caching has been released. This version of Caching allows higher size limits, better performance and flexibility.
You can read the release notes
ServiceBus: ServiceBus tools were also updated. You can review the release notes here.
Storage: New Storage Client Library Version 2.0 was released. You can find the release notes here.
This version of storage library makes breaking changes. You may find the following links helpful.
Migration guide
Introducing Windows Azure Client Storage Library 2.0
Subscription Management:

    Multiple subscriptions will be allowed in a publishsettings file.
    Support for 25 management certificates per subscription. The previous limit was 10
    More Visual Studio Tools(Storage Explorer) now leverage subscription and eliminate the need for copy and pasting credentials from Azure management portal

PowerShell: PowerShell was updated to allow you to manage:

    Cache in web/worker roles
    Azure Web Sites
    GitHub Integration

Microsoft just released RTM Windows Server 2012(OS Family 3) for Windows Azure.
This OS will support .Net SDK 4.5. This is the only version of the Operating system that will support .Net SDK 4.5
If you are running Windows Server 2008 R2 you can install .Net SDK 4.5 via a startup task.
For details you can look at the SDK Windows Azure Guest OS Releases and SDK Compatibility Matrix.

Since .Net 4.5 SDK will run on Windows Server 2012 OS Family 3 automatic grades will not be possible.
You will need to build your application with .Net 4.5 and deploy to a web/worker role. You will need to select OS family 3 as the destination.

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