After my session on NAV TechDays about deployment of NAV 2016 on Azure SQL Server, I got a lot of questions about using Development Environment in this situation.
Using Development Environment can be done absolutely normal. If you want to use DE from your local computer, first you have to add your IP address to Azure SQL firewall (SQL Databases > Servers > choose server > Configure). You can do it to allow connection between your computer and Azure SQL server.
After that, open Development Environment and type your full Azure SQL server name to Server Name (xxxxx.database.windows.net), choose Database Server Authentication, your username and password and on the end normally choose your database.
You can work with design, but if you want to open table for example, you have to make some additional configurations. Before it, you have to make connection between your local NAV Windows Client and Azure VM. You need to use certificate and encryption key. After you configure them, everything will be OK.
If you want to use Development Environment directly on Azure VM, you just need to open DE and login to Azure SQL server (I already described), nothing else. In this situation you can work what you want.
You can see it on previous picture. Database is opened from Azure SQL and you can do everything as you used to.