Currently, the time zone within Windows Azure is Pacific Standard Time (PST). Soon, we’ll be migrating to Coordinated Universal Time (UTC). This is potentially a breaking change for applications which rely on local time. When will we make the change?
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Read the complete post at http://blogs.msdn.com/windowsazure/archive/2009/02/26/moving-to-coordinated-universal-time-utc.aspx