You might be having issues while launching Windows Azure Emulator especially in shared/lab computers. Here’s the screenshot of the problem.
The storage emulator actually will initialize the environment and it will try to use the default SQL Express installed on the machine. If it couldn’t find the SQL Express instance, you’ll see the error above. How to solve this issue? Follow the steps below.
- Open up your Windows Azure Command Prompt
- Type the following line.
- This code will configure the storage emulator to run against a local instance of SQL Server, rather than against SQL Express.
Wade Wegner, a technical evangelist in Microsoft had also published a script for you to solve this storage emulator initialization issue. Read more about it here.
Another link that you can read more on initializing storage account is from here.