At TechEd 2014 in Houston Microsoft announced a new service named ‘Azure Files’. The service is now in preview. The reason for this feature is to allow to migration of traditional applications requiring a SMB fileshare to Microsoft Azure.
Azure Files allows VMs in an Azure Data Center to mount a shared file system using the SMB protocol. These VMs will then be able to access the file system using standard Windows file APIs (CreateFile, ReadFile, WriteFile, etc). Many VMs (or PaaS roles) can attach to these file systems concurrently, allowing you to share persistent data easily between various roles and instances. In addition to accessing your files through the Windows file APIs, you can access your data using the file REST API, which is similar to the familiar blob interface.
Basically blob storage can now be accessed over SMB just like being served from a Windows VM. With Azure files no requirement for a VM to serve files. Untill now files stored in Azure Storage could only be accessed using REST API over http.
It can be compared to a traditional storage array being able to present files using SMB.
Files served out by Azure files seem to be only accesible from VM’s running in Azure.
much more information here.