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    <p>You can use the XML file as your store, there is no harm it it, rather this is a very easy and cost efficient solution, but there is a catch. As you mentioned currently you are using only azure instance, in this case you can store the XML file in your <code>App_Data</code>, but if in future if you want to shift to 2 azure instance, you will have to replicate the <code>App_Data</code> folder. In other words you will need to keep <code>App_Data</code> folder in sync.</p> <h2><strong>Suggestion</strong></h2> <p>Instead of storing file in <code>App_Data</code> store it in <code>BLOB</code>, you can retrieve it using <code>WebClient</code> and the store it in memory. </p> <p><strong>Pros</strong>: The advantage of <code>BLOB</code> is, you don't have to sync it.</p> <p><strong>Cons</strong>: There is a cost associated on the number of transactions you can make. This will depend upon how many times you update the file.</p> <h2><strong>Summary</strong></h2> <ul> <li>If you are going to work with only one Azure Instance, use <code>App_Data</code></li> <li>More than one Azure Instance, use <code>BLOB</code> with no syncing or use <code>App_Data</code> with sync.</li> <li>Do not use Azure Table, as <code>BLOB</code> is the designated store provided for this purpose only.</li> </ul> <p><strong>EDIT</strong></p> <p>From <a href="http://social.msdn.microsoft.com/Forums/da-DK/windowsazuredata/thread/ddbdbce1-8f37-4a47-9947-0d7cb3eeedcd" rel="nofollow">MSDN</a> post</p> <blockquote> <p>As far as I know, Windows Azure does not support SQL Compact Edition. SQL Compact Edition stores data in file system which will not be synchronized in multiple instances (a web role may be deployed to more than one instance. An instance is similar to a virtual machine). And files stored in file system will lost when the instance is restarted or reimaged. </p> </blockquote> <p>Hope this helps you.</p>
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