I went back and re-parsed the Reg sentence, and indeed, that probably does refer to the client, not the hypervisor.
Enlighten me -- what hypervisor is Azure using, standalone Windows Hyper-V Server I'd guess?
Microsofts data center platform is based around SCVMM (System Center Virtual Machine Manager). Its a specialized hyper visor for cloud that manages HyperV as the host hypervisor.