I have a web role that is used to manage my Azure setup using Management API. The role works fine when running locally on my laptop, calling into Azure through the net. However, when the web role is installed in Azure, the calls returns 'forbidden' as the status code.

I am suspecting that when the call is made inside the Azure network, it actually has to go out of Azure and get back again. May be this is the problem?

https://management.core.windows.net/[subscriptionid]/services/

Do you have the API management certificate installed in your web role? 403 error usually means there's an issue with your management certificate.

Yes, management certificate was installed, that's why my web role would work when calling from outside Azure. The same certificate was also installed in the web role and my code also checks to make sure that it is loaded.