Azure SQL Database and ArcGIS experience

I am testing how we can use Windows Azure SQL Databases along with ArcGIS Server 10.1 and would like to hear your experience. Currently I'm having problems publishing a map service.

Scenario:
1) Created an empty database via the Azure SQL Database interface - SUCCESS
2) Connected to my Azure SQL database from ArcCatalog - SUCCESS
3) Created a new feature class (multipoint) from ArcCatalog - SUCCESS
4) Loaded some points into the feature class from ArcCatalog - SUCCESS
5) Created a new map document showing the points in ArcMap - SUCCESS
6) Tried to publish the map from ArcMap in our ArcGIS Server environment - FAILED

Problem: The data source is not registered and the data will be moved to AGS: '24011 - Layer's data source is not registered with the server and data will be copied to the server'.

When I then try to register the data source (Azure SQL) I get the message: '...The connection property set was missing a required property or the property value was unregnized... Could not open a connection to SQL Server...'

Since it is not a problem for me to connect from ArcCatalog and ArcMap I do not really see the problem.

Any ideas or experience are welcome.