SQL Database
Azure SQL — Product Overview
Azure SQL is Microsoft's family of fully managed database services built on the Microsoft SQL Server engine, giving organizations a secure, familiar, cloud-based home for their relational data. Rather than a single product, Azure SQL spans a few deployment options designed for different needs — from a single, self-contained database to a fully compatible, near-identical replica of an on-premises SQL Server environment. Below is an overview of what each offers and the value it delivers.
Azure SQL Database
Designed for: Organizations building new, cloud-native applications that need a fully managed, individual database without server management.
What's Included
- A fully managed, single database or elastic pool of databases, with patching, backups, and infrastructure handled automatically
- Built-in high availability and automatic backups
- Flexible compute options, including a provisioned tier for steady, predictable workloads and a serverless tier that automatically scales and pauses based on activity
- Built-in intelligent performance tuning and threat detection
- Elastic pools, allowing multiple databases with variable usage patterns to share a pool of resources efficiently
Why It Matters for Your Business
Azure SQL Database removes the operational burden of managing a database server entirely — there's no server to patch, back up, or maintain, letting development teams focus on the application itself. The serverless compute option is particularly valuable for applications with unpredictable or intermittent usage, since the database automatically scales down and pauses during inactivity, so a business isn't paying for capacity it isn't using. For organizations running many smaller databases, such as a separate database per customer in a multi-tenant application, elastic pools allow those databases to share resources efficiently rather than each requiring its own fully provisioned capacity.
Billing Structure
Azure SQL Database offers two ways to pay. The vCore model lets an organization choose compute, memory, and storage independently, and offers a choice between a provisioned tier — a fixed amount of compute reserved continuously — and a serverless tier, which is billed per second for compute actually used and automatically pauses (and stops billing for compute) during periods of inactivity. Storage is billed separately based on the amount of data stored. An older, simpler DTU-based model bundles compute and storage into a single bundled unit, and remains available for straightforward, predictable workloads.
Azure SQL Managed Instance
Designed for: Organizations migrating an existing on-premises SQL Server environment to the cloud with minimal changes to their applications.
What's Included
- Near-complete compatibility with on-premises SQL Server, supporting most existing features and functionality
- A fully managed instance, with patching, backups, and infrastructure handled automatically
- Support for multiple databases within a single managed instance, similar to a traditional SQL Server instance
- Built-in high availability and automated backups
- Network isolation within a private virtual network for enhanced security
Why It Matters for Your Business
Azure SQL Managed Instance is designed specifically for organizations that already run SQL Server on their own hardware and want to move to the cloud without rewriting or re-architecting their applications. Because it closely matches the behavior and feature set of on-premises SQL Server, most existing applications can be migrated with little to no code changes, significantly reducing the time, risk, and cost typically associated with a database migration. Organizations still get the operational benefits of a fully managed cloud database — automatic patching, backups, and high availability — without giving up the compatibility their existing applications depend on.
Billing Structure
Azure SQL Managed Instance is billed using the same vCore model available for Azure SQL Database, allowing an organization to select the exact combination of compute, memory, and storage its workload requires. Because a Managed Instance can host multiple databases, compute and storage costs are calculated for the instance as a whole rather than per individual database. As with Azure SQL Database, storage is billed separately from compute.
Summary
- Azure SQL Database — a fully managed, individual database best suited to new, cloud-native applications, with a serverless option for variable workloads.
- Azure SQL Managed Instance — a fully managed environment closely matching on-premises SQL Server, best suited to migrating existing applications to the cloud with minimal changes.
Both options are built on the same trusted SQL Server database engine and share the same flexible vCore billing model, allowing an organization to choose the deployment option that best matches whether it's building something new or migrating something existing.
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