Microsoft has updated its Windows Azure SDK with support for the new and improved .NET Framework 4, Visual Studio 2010 tools and IntelliTrace bug tracking while its cloud database SQL Azure got spatial data support and 50GB worth of storage.

There’s a the public preview out of SQL Azure Data Sync Service and the Azure Content Delivery Network has moved from beta to a production service and is now generally available.

At Tech Ed 2010 this week Microsoft threw its support behind the hybrid cloud model, as one might expect. “Microsoft’s strategy is to deliver software, services and tools that enable customers to realize the benefits of a cloud-based model with the reliability and security of on-premises software.” The key is to strike the right balance, it said.