Cloud Development has become easy with this new version of Visual Studio.With Windows Azure™ Tools for Visual Studio, it’s easy for developers to build, debug and deploy services and applications for Microsoft’s new cloud platform.

• C# and VB Project Templates for building Cloud Services
• Tools to change the Service Role configuration
• Integrated local development via Development Fabric and Development Storage services
• Debugging Cloud Service Roles running in the Development Fabric
• Building and packaging of Cloud Service Packages
• Browsing to the Azure Services Developer Portal

Although some compatibility issues have been reported with Office 2010 CTP, (which is one of the major software Microsoft is looking for Cloud computing) and Visual studio 2010.But since both these products are in their Beta there might some conflicts Occur .