Install FIM in Windows Azure IaaS

Q: Can I install Forefront Identity Manager (FIM) in a Windows Azure Iaas virtual machine (VM)?

A:  Yes, FIM is supported in a Windows Azure IaaS VM (as you can see at the Microsoft Support website). One special consideration you'll need to remember is to install SQL Server locally on the server where FIM is installed, rather than a remote server when running in Windows Azure.