Did you know that when you connect to SQL Azure, a KERBEROS authentication is performed? However, when using SQL Server Management Studio, or any other client, you are forced to use a SQL authentication mechanism. While I was digging in the system tables, I realized that my SQL Azure connection was being reported as a KERBEROS authenticated connection. If you run this statement on your SQL Azure database... select session_id, auth_scheme from sys.dm_exec_connections ... this is what you get: session_id ......