In general, WCF works correctly on Windows Azure. There’s a problem using "add service reference" or svcutil but we’ve a patch to workaround the problem, installed in the cloud, more information is here (note that a web.config change is also required). One of the things this prompted a lot of folks to ask is "Where is the Windows 7 version of this patch?" Well, Microsoft released KB977420this QFE for Windows 7 and Windows Server 2008 R2. If you’re using WCF on Windows Azure, refer content here. You may also be interested in the REST service templates the WCF team has made available on the Visual Studio Gallery (this’s the .NET 3.5 C# template, there are also .NET 3.5 VB and .NET 4 C# and VB templates).