Hi,
Yes, that is the recommended way.
SQL Azure transfers data using tabular data stream (TDS) over an SSL connection. SQL Azure doesn’t support unencrypted connections, and has a signed certificate issued by a Certificate Authority. These factors all help ensure secure data transmission and
can help prevent man-in-the-middle attacks
To validate certificates with ADO.NET application code, set Encrypt=True andTrustServerCertificate=False in the database connection
string.
Reference :
http://technet.microsoft.com/en-us/magazine/hh351833.aspx
Regards,
Mekh.