Both offerings are considered Platform-as-a-Service (PaaS) implementations, which by nature imposes certain limitations that we will cover. This article does not review the Infrastructure-as-a-Service (IaaS) implementation of SQL Server. I will compare the services at a high level, providing an overview of their implementation and architecture, T-SQL limitations summary and licensing models.
Please note that cloud-based services evolve rapidly; the information provided in this article is valid as of September 2019.
A stark contrast in approach to delivering services between the two cloud service giants begins with how they both deliver their SQL Server database services. Microsoft uses the latest binaries available for SQL Server (SQL Server 2019), ensuring that your application always runs on the latest binaries available. On the other end, Amazon offers a mostly fixed versioning model (from 2012 to 2017 at the time of this writing) that requires you to choose which version to use. There are pros/cons to each approach however since some legacy applications cannot always run on more modern database engines, the AWS RDS service gives organizations more flexibility by offering various database engine versions; however this is a departure from a pure Platform as a Service (PaaS) model that helps your organization run on the latest platform, which helps you avoid complex and expensive migrations in the long run, and automatically gives you additional features over time. The Microsoft Azure model drives you into a Virtual Machine implementation if you need to use earlier versions of SQL Server.
Availability
Conceptually both RDS SQL and Azure SQL DB offer a SQL Server-based hosted service that can be accessed via traditional management tools and applications.
From an availability standpoint, the Azure SQL Database provides 99.99% uptime (calculated monthly). Two high availability models are available depending on the service tier you select standard availability and premium availability. The standard availability model separates storage from compute by using blob storage to store data; the actual server running SQL Server simply mounts the blob storage files for the database and log files. The premium availability model implements Always On Availability Groups in which each node (up to four nodes are provisioned) in the cluster contains a local copy of the data, and ensuring that two of the nodes implement a two-phase commit to avoid data loss. It is worth noting that the Azure SQL Database service provides a secondary read replica for the premium availability tier, allowing applications to access a read-only version of a database without impacting the primary read/write database.
The AWS RDS SQL Server service offers a tier without availability (with no SLA) and another with a single standby server that AWS RDS can use to failover automatically with a 99.95% availability (calculated monthly). The high availability mechanism used depends on the version of SQL Server selected. The AWS RDS service also does not offer a secondary read replica at this time; reports that need access to real-time or near-time data sets will need to connect to the primary read/write instance. The ability to choose an AWS RDS SQL Server without an SLA seems to provide an interesting cost advantage for development and testing scenarios since pricing for a single instance is about half the price according to the public Amazon pricing page. The Microsoft Azure platform also offers a dev/test pricing model that provides up to 55% savings on license for Visual Studio subscribers. For critical applications requiring high availability and a read replica, the Azure SQL Database offering seems to be providing the best option at this time, both in terms of availability and secondary read replica.
Licensing
From a licensing standpoint, both cloud offerings provide a license-included fee model, so that you do not have to purchase a SQL Server license separately. Generally speaking, it is best to use a license-included model since you can easily create and destroy database instances whenever needed; so you only pay to license for the amount of time you have a running database. However, for certain companies, it may be beneficial to leverage a BYOL (bring your own license) model. Only the Azure SQL Database service offers both a license-included model for both offerings and a BYOL model for managed instances if desired. Amazon RDS SQL Server currently does not offer a BYOL licensing model due to restrictions imposed by Microsoft. You should note that the BYOL model offered by Microsoft can provide some significant savings.
(*) BYOL is only available for vCore pricing
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License included model
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BYOL
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AWS RDS SQL Server
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Yes
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Yes (*)
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Azure SQL – Single Database
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Yes
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Yes (*)
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Azure SQL – Managed Instance
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Yes
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Yes
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Limitations
There are specific limitations for both AWS RDS SQL Server and Azure SQL DB. Some of the limitations are inherent to the database version being considered while other features are simply unavailable due to management or security concerns on each platform. It is worth noting that initially, the AWS RDS SQL Server implementation offered the closest compatibility to an on-premise implementation, while Microsoft was offering a pure PaaS implementation specifically designed for cloud-born applications. However, Microsoft also released a version of its PaaS SQL Server offering called Managed Instances, which is designed to compete on feature parity with AWS RDS and offers near 100% compatibility.
For a complete list of T-SQL features that aren’t supported by database offering on Microsoft Azure, please see here for Managed Instances and here for Single Databases. And the equivalent documentation (significantly less detailed however) for AWS RDS SQL Server is here.
Here is a partial and high level synopsis of the key feature differences in the various offerings for both AWS RDS and Azure SQL Database.
(*) Provided by the service; access with T-SQL may be restricted or unavailable
(**) Limited support or depends on service tier selected


Sourav Kumar DasPosted Sep 27, 2019, 11:20 PM
Awesome Article Sir.
Mahesh ChandPosted Sep 27, 2019, 9:59 AM
Thank you, Harve. Appreciate it.