260 votesplanned · AdminAzure IaaS Engineering Team (Azure IaaS Engineering Team, Microsoft, Microsoft Azure) responded
We are planning several improvements in this space that will enable better control over updates which are applied to VMs.Edwin Davidson commented
While this is not WSUS as a service, specifically, Automation Update Management exists in Azure as a service. When combined with a few other dashboards it is better than WSUS IMO. Keep in mind that Windows 10 machines in an Enterprise can peer cache Microsoft updates, thus providing a local cache of updates at each site.
I am replying to a 4 year old post because this post is the very first result when I began searching for WSUS as a service.