Can't delete azure database
Databases with the name format system-SOME GUID
may be federations.
Deletion (Dropping) of a federation must be done within the database Management Portal for the main database.
Caution: I don't know the ramifications of dropping a federation, so make sure you have backups of data you don't want to loose or research this further.
- From https://manage.windowsazure.com/#Workspaces/SqlAzureExtension/Databases
- Select the main database
- Select "Design your SQL database"
- Log on
- At the top you see "server > [DB] > Tables", Click [DB]
- Federations are shown on this page and you can select them and "Drop Federation"