We're using Azure here successfully.
We have a single front-end server on a 'Standard D2 (2 Cores, 7 GB memory)' VM. The lower tier VM we started with didn't have enough RAM to meet the needs of various components of the full stack and we experienced memory-related failures as we got things going. I definitely recommend following the minimum memory recommendation guidance :).
I've seen at least one advanced module that is set up for S3 storage from AWS, but doesn't appear to have an Azure storage equivalent.
If it weren't for credit we get towards Azure from our MSDN subscription, I would have gone with AWS.
Chris