Microsoft has lowered the price of SQL Azure and introduced a 100MB database option. Customers will realize 48% to 75% savings for databases larger than 1GB. The 100MB DB option enables customers to get started using SQL Azure at half of the previous price, while still providing the full range of features including: high availability, fault tolerance, self-management, elastic scale-out, on-premises connectivity, and full Service Level Agreement. For more details go HERE.
Update: For more explanation of the drop see Peter Laudti’s blog here