Microsoft SQL Azure presents unique opportunities and challenges with regards to database performance. While query performance is the key discussion in traditional, on-premise database deployments, we show you that factors such as network latency and multi-tenant effects also need to be considered in the Cloud. We offer some tips to resolve or mitigate related performance problems. We also dig deep into the inner workings of how SQL Azure manages resources and balances workload in a massive Cloud environment. The elastic access to additional physical resource in the Cloud offers new opportunities to achieve better database performance in a cost effective manner, an emerging pattern not available in the on-premise world. We show you some numbers that quantify the potential benefits.