At the end of 2014, Microsoft released a new Windows Azure SDK v2.5 that has significant impact on monitoring of Azure Cloud Services (web and worker roles) with Azure Diagnostics. In a nutshell, Azure SDK 2.5 has obsoleted the way Azure Diagnostics was instrumented and collected via their Diagnostics module and switched over to a new Extension-based model utilized for monitoring of Virtual Machines.
From AzureWatch perspective, this means that users who depend on AzureWatch to monitor and auto-scale their Cloud Web and Worker roles should wait before upgrading to Azure SDK v2.5. AzureWatch is currently not compatible with Azure SDK 2.5 when monitoring Cloud Services. Monitoring of SQL Azure, Storage, VMs, and other assets is not impacted. We are working on handling this situation and hope to have more news in the coming weeks ahead.