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There are now new options for performing an in-place upgrade for hosted Windows Azure services. These now include:
- Change the virtual machine size (scale-up or scale-down)
- Increase local storage
- Add or remove roles to a deployment
- Change the number or type of endpoints
This means that there are now virtually no pressing needs left over for a full “delete and re-deploy” for service updates. Check the details here: blogs.msdn.com/b/windowsazure/archive/2011/10/19/announcing-improved-in-place-updates.aspx