"Azure File Storage exposes file shares using the Server Message Block 3.0 (SMB) protocol, the predominantly used file share protocol for existing on-premises applications... Azure File Storage also implements REST API protocol, which enables you to develop modern applications that integrate with existing applications... New features:
- SMB 3.0 support, includes encryption and persistent handles
- A new browser-based file explorer in the Azure Preview portal
- Azure Storage Metrics for Azure File storage
- The ability to mount Azure File Storage file shares from outside of Azure datacenters
(this implies the data are not stored encrypted)