Sql Server Web Edition Reporting Services errors when trying to connect to Windows Azure SQL

I am using a preconfigured image from the Azure VM Gallery to create a VM.
--> Sql Server 2012 SP1 Web running under Windows Server 2008 R2
After configuring Reporting Services I get the following error when trying to run a report that connects to my Azure SQL db.
An error has occurred during report processing. (rsProcessingAborted)
An attempt has been made to use a data extension 'SQLAZURE' that is either not registered for this report server or is not supported in this edition of Reporting Services. (rsDataExtensionNotFound)
On the VM using SSMS I can connect to the Azure SQL db.  On the VM in Report Builder when I define a connection I get a similar error to the one above when I test that connection.  I am using Microsoft Azure SQL as the data source type. 
Interestingly in Report Builder, if I proceed past the connection definition, I can see the tables from my Azure SQL db in the dataset definition page.
One more note.  If I use a different image from the Gallery (Sql Server 2012 Standard SP1 on Windows Server 2012) my report builder connection works and the reports run fine.  I believe that the Azure documentation says that Sql Server Web edition
is an acceptable choice for the SSRS on VM for reporting.
Any thoughts or suggestions?
Thanks -- Tom Reilly

Hello,
A VM with SQL Server 2008 R2 or 2012 supports all Reporting Services features, including all supported data sources, customization and extensibility, and scheduled report execution and delivery.
Did you run the report in Report Manager,or preview the report in Report Builder? Which version of the Report Builder you installed in the Windows Azure VM? SQL Reporting does not support reports created from Report Builder 1.0 or 2.0. You can create reports
using Report Builder 3.0 and then upload the reports.
What's more, please also check the database source credential of the report.
Regards,
Fanny Liu
If you have any feedback on our support, please click here.
Fanny Liu
TechNet Community Support

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