By default the packaging process is configured to serve assets (such as images, stylesheets, javascript) from the local webserver, your answer is YES. If you configure your Azure Blob Storage Account you can change this to automatically deploy to Azure Blob.
This offers much better performance (CDN) for your assets and much better conditions for traffic.
To use Azure Blog storage add the following configuration to your config.yml:
windows_azure_distribution:
assets:
type: blob
accountName: acc
accountKey: pw1
During packaging the Azure Distribution bundle will copy all assets onto Azure Blob storage, versioned by the current build number. This way different assets between different versions in staging/production will never affect each other.
Make sure to clean up your storage account and delete those old version containers if you don’t need them anymore.
More information can be found at: http://beberlei.github.com/AzureDistributionBundle/