| Feature/Aspect |
SQL Server on Azure VM |
Azure SQL Managed Instance |
Azure SQL Database |
| Logo |
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| Overview |
Full control over SQL Server instance and OS |
Managed service with near 100% compatibility with SQL Server |
Fully managed platform-as-a-service (PaaS) |
| Type of cloud service |
IaaS |
PaaS |
PaaS |
| Control |
Full administrative control over OS, SQL Server, and networking |
Limited OS access, full SQL Server control |
Limited control, focus on database management |
| Availability |
99.99% |
99.99% |
99.995% |
| SQL Server compatibility |
Fully compatible with on-premises physical and virtualized installations. Applications and databases can easily be "lift and shift" migrated without change. |
Near-100% compatibility with SQL Server. Most on-premises databases can be migrated with minimal code changes by using the Azure Database Migration Service |
Supports most core database-level capabilities of SQL Server. Some features depended on by an on-premises application may not be available. |
| Customization |
Customizable hardware (CPU, memory, storage |
Less customization, predefined service tiers |
Service tiers with various performance levels |
| Administration |
Self-managed backups, patching, high availability |
Automated backups, patching, and high availability |
Automated backups, patching, and high availability |
| Scaling |
Manual scaling by resizing VM |
Automatic scaling within managed instance tier |
Elastic pools, auto-scaling within service tiers |
| Security |
Full control over security settings |
Integrated with Azure AD, VNET support |
Integrated with Azure AD, advanced security features |
| Compatibility |
Supports all SQL Server features |
Near 100% compatibility with on-premises SQL Server |
Some feature limitations, newer features may differ |
| Use Cases |
Legacy applications, third-party software, lift-and-shift
Use this option when you need to migrate or extend an on-premises SQL Server solution and retain full control over all aspects of server and database configuration.
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Modernization with minimal changes, hybrid environments
Use this option for most cloud migration scenarios, particularly when you need minimal changes to existing applications.
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New cloud-native applications, simple databases, microservices
Use this option for new cloud solutions or to migrate applications that have minimal instance-level dependencies.
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| Cost |
Pay for VM size, SQL Server license, storage |
Pay for managed instance tier, includes licensing |
Pay for database size, DTU/vCore-based pricing |
| SSRS/SSAS Support |
SSRS/SSAS Support |
Limited support (workarounds needed) |
Not supported |
| Key Identifiers |
Need OS-level control, third-party apps, specific configurations |
Need near full SQL Server compatibility with managed service |
Need fully managed PaaS, cost-effective, simplified management |