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Can somebody share some resources for given task? We need to setup our application in Azure and the best way i can think of is to setup the deployer itself in azure. Please advice if this is the best approach. What could be the challenges? what are the changes (if any) i need to make in templating side?

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If you're in Web 8+ and use a framework like the DXA or DD4T, you could host your Services somewhere else than Azure - if you launch the sample DXA App in Azure, it is actually talking to webservices hosted in AWS.

Other than that, setting up a deployer on Azure is no different from setting it up anywhere else. You need a host, you need Java, and probably you need a database. Again, if you're on 8+, you could use SQL Azure as your database.

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