Windows Azure Image Library provides Suse Linux image but it has very basic packages installed on it.
If you want to build a customer Suse Image you can use free SuseStudio tool.
This blog post describes how to build a custom Suse image and upload it to Windows Azure.
Watch this 3 minute video as it shows you a better way to build the image.
Go to http://www.susestudio.com and sign up for an account.
Enable experimental features on your account.
This same blog post also lists all the steps to build an upload an image.
Go to susestudio home page and choose to build a new appliance.
Select Server option for Suse Enterprise Server group.
Make sure the select 64 bit option
Search for any other software you need and add it. Perhaps you can install graphical interface.
Go to the Configuration tab and select “Discover network settings automatically”
Go to the files tab and upload any files you want to be copied in to the image
Go to the build tab and select “Azure Image” from the drop down.
Press the build button and it will take 5-10 minutes to build the image
Press the upload button to upload this image to Azure
On the next page you can download your Azure settings file from the azure management portal
You will have to log into your azure account you will see a screen shown below. You should save your settings file.
Go back to Susestudio and press “Upload settings file” button.
You will have to select the file you previously downloaded.
When you upload the file you will have to select the storage account where you want to save the VHD.
Return to SUSE Studio’s Azure dashboard…
Press the upload button. It is a large file so it will take a little time to upload it. It took less than 10 minutes to upload the image.
It will save this image to your “my images” section of your gallery.
You can select to create New Virtual machine->From Gallery->My Images and the image you just uploaded.