Windows Azure Error failed to start storage emulator the sql server instance localhost sqlexpress could not be found

Resolving: Windows Azure Error failed to start storage emulator the sql server instance localhost sqlexpress could not be found

You need to run DSInit utility to create database. For Windows Azure SDK 1.6 the location for DSInit utility is:

C:Program FilesWindows Azure Emulatoremulatordevstore

By default DSInit expects that your database server is (local)SQLEXPRESS but you can change it easily. If you have MSSQL instance called SQLEXPRESS then it is enough to just run DSInit. If you need some other instance then run the following command:

DSInit /sqlinstance:<instance name>

For default instance use “.” as instance name:

DSInit /sqlinstance:.

You can find more information about sqlinstance and other switches from DSInit documentation. If database was correctly created you should see dialog like this:

DSInit: Strorage databases are done

When storage database is ready you can run your application.