Yes it's possible but do not use the azure database. It's not supported by Atlassian:
I think support for azure database will eventually be there. But I wonder how Confluence can be hosted in Azure App Services. Confluence can of course be hosted on a Azure VM. But looks like Azure App Services is for deploying apps and not for hosting vendor products.
If you think Conflunce can be deployed/hosted in Azure App Services, Could you please provide some detials/links if any.
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