What VM software is used in Azure and what VM software will Azure support?

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Microsoft virtualization
Microsoft Virtualization Chat 8/27
Virtual Machines
Windows Azure
Azure is based on virtual machines, what VM software is used in Azure and what VM software will Azure support? This question is from the Microsoft Virtualization Chat held on August 27th.

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Azure is a new virtualization platform, for cloud applications, which may or may not run in virtual machines.
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Yes, Microsoft will add Virtual Machine functionality to Windows Azure to expand the set of existing applications that can be run on it. This Virtual Machine deployment functionality will enable developers to run a wide range of Windows applications in Windows Azure, while taking full advantage of the built in automated service management.

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