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The information in this post is out of date.
Visit msdn.com/data/ef for the latest information on current and past releases of EF.
For using EF with SQL Azure see https://msdn.com/data/jj556244
The Windows Server AppFabric Customer Advisory Team recently put together some great guidance on managing connections with SQL Azure and EF. They outline common connection issues when working with a cloud database, and show how you can implement your own custom retry policy. You can find the article here.