A question that comes among often when we talk about SQL Azure: How can we secure SQL Azure data? or In other words: Can we encrypt SQL Azure Data? And the answer to that is that SQL Azure currently does not support encrypting data. It’s done at the application level and one of SQL Azure labs: Trust Services is something that you should check out if you have such a requirement.

Stepping back for a moment, it’s common to have concerns about security with SQL Azure. It’s a good thing to investigate what you are getting into and so if you are investigating options to secure your SQL Azure data – then thumbs up from me!

Now, I would share my experience with Trust services when i get a chance to explore it, meanwhile you can read more about it here:

http://www.microsoft.com/en-us/sqlazurelabs/labs/trust-services.aspx

http://blogs.msdn.com/b/buckwoody/archive/2012/03/27/sql-azure-and-trust-services.aspx

Just note:

Communication between SQL Azure and application is always encrypted. read more here:
Security Guidelines and Limitations (SQL Azure Database)