Figure 2. Successful Azure PowerShell Connection Output. Although this next step might have been set for other reasons, you must have a server firewall rule setup to allow incoming SQL connections ...

Reason: login failed for user 'sa'. Please verify SQL Server is running and check your SQL Server Registration properties (by right-clicking on the SERVER1 node) and try again.</pre> ...

Fix Windows could not start the SQL Server Reporting Services service on Local Computer error by following these working solutions.