What’s the difference between Azure SQL Database and Azure SQL Managed Instance? Your choice will change the direction of your business’s operations. We’ll explain when you should use each of these options in our guide below.
We’ll explain:
- Strengths of each
- Shortfalls
- Feature comparisons
Why the Azure SQL Database vs Managed Instance Choice Matters
The choice between Azure SQL Database and Managed Instance (MI) is critical because it dictates your:
- Level of control
- Migration effort
- Feature compatibility
- Total cost of ownership (TCO)
This decision is about choosing the right platform for your workload.
While we’ll discuss Azure SQL Managed Instance vs Azure SQL Database pricing later on, it’s important to consider:
- Migration effort
- Compatibility
- TCO
- Security and network isolation
Your unique needs dictate which solution is the best strategic choice for you.
What Azure SQL Database Actually Is
Microsoft’s flagship solutions are those that companies use as a database-as-a-service. When considering Azure SQL Database vs Managed Instance, scaling is only one reason to choose the former.
You must consider:
Key Characteristics
SQL MI vs Azure SQL is clear when you realize Database is a platform-as-a-service. You benefit from:
- Microsoft manages 100% of the infrastructure
- Scoped databases rather than instances
- High availability and redundancy
- Elastic scalability and cost optimization
- Built-in intelligence and security
Intelligent query performance
Strengths of Azure SQL Database
Why choose this PaaS? Azure SQL vs managed instance should consider the strength of the Database:
- Zero infrastructure overhead
- Lower TCO
- High availability and disaster recovery
- Faster time-to-market
- Provisioning is effortless
- Advanced security measures
All of these strengths push businesses to this product, but there are also weaknesses to consider.
Where Azure SQL Database Falls Short
A fully managed solution also comes with shortfalls. Azure SQL vs Managed Instance often comes down to the Database’s limitations:
- No access to server-level operations
- Support for built-in job schedulers doesn’t exist
- Querying external servers or instances is not possible
- Integration with Windows/Active Directory logins isn’t available
Your team doesn’t have OS-level access to the Database. Microsoft also manages all patches and updates, which might not align with the best times for your business.
When you reach enterprise needs, the cost savings of Azure SQL Database vs Managed Instance lean towards the latter.
What Azure SQL Managed Instance Brings to the Table
MI is a Platform-as-a-Service (PaaS) offering that provides near 100% compatibility with the latest stable SQL Server Enterprise Edition database engine. It acts as a perfect middle ground between a fully controlled but maintenance-heavy Azure VM options and the high-abstraction, limited-control Database.
Built for Near-Full SQL Server Compatibility
Compatible options are always good for business. Azure SQL Database vs Azure SQL Managed Instance must consider that MI allows you to:
- Manage full instances
- Host multiple databases
- Access instance-level features
- Deploy on Virtual Network
- Support Linked Services
- Grant access to native commands for Azure Storage
Managed Instance Benefits
Additional perks of MI include:
- Update and package automation
- High availability
- Disaster recovery
- License costs included
- Security integration
Where Managed Instance May Not Be Ideal
SQL MI vs Azure SQL is an easy choice for some and not others. MIs do not fit every use case because:
- Costs are often higher
- Provisioning is time-consuming
- Scaling takes longer than the Database
- Network complexity is high
Feature Comparison: Azure SQL Database vs Managed Instance
A brief overview of the features to consider is:
Compatibility Levels and SQL Server Features
Azure SQL Database vs Azure SQL Managed Instance must consider:
- Deployment scope: Database is Scoped; MI is instance-based.
- Compatibility: Database is compatible with the SQL language
- Cross-database queries: Database doesn’t support it; MI does natively
- Linked servers: Database doesn’t offer support; MI offers linked servers in some use cases
Networking, VNET Integration, and Isolation
Deployment and data isolation must also be considered:
- Database offers a multi-tenant environment, public IP address, firewall rules, service endpoints and more.
- MI offers deployment to VNet, private IP address, network isolation and more.
Performance and Scaling Models
Azure SQL Database offers the greatest variety and flexibility when it comes to scaling individual databases.
This is thanks to:
- Provisioned vCore Model
- Serverless vCore Model
- DTU Model
- Hyperscale Tier
MI is focused on the concept of a dedicated instance, which defines its scaling behavior. It offers the provisioned vCore Model only.
Cost Differences Between Azure SQL Database and Managed Instance
Both SQL Managed Instance vs SQL Database are PaaS offerings. But they differ in price structure and total cost of ownership.
- Baseline cost: SQL DB is the lowest entry point and most cost-effective. MI has a higher cost and is not optimal for single database deployments.
- Billing models: DB offers flexibility with the DTU model and vCore model. MI exclusively uses the vCore model.
- Network and infrastructure overhead: DB’s associated networking costs are minimal. MI is deployed in a dedicated virtual network that introduces additional costs.
Migration Considerations: Picking the Model That Minimizes Headaches
In a SQL Managed Instance vs SQL Database comparison, the best choice depends on your current SQL Server workload and whether you need minimal code changes.
MI:
- Is optimal for lift-and-shift migrations. It ensures minimal database or application changes.
- Supports native backup and restore to URL as well as Managed Instance link or Log Replay Service for virtually no downtime.
- Ideal for apps that rely on instance-scoped features.
Database:
- Works best for cloud-native apps. Migration is possible, but it gets messy.
- Has a migration tool, but it involves higher effort for legacy applications.
- Requires the most work for traditional SQL Server applications because of the feature differences.
When Azure SQL Database Is the Better Choice
The database is the most cost-effective and streamlined option. It’s best suited for:
- New cloud applications
- Minimal administrative overhead requirements
- Elastic or intermittent workloads
- Small or budget-constrained databases
- Multi-tenant SaaS applications
When Managed Instance Fits Better
MI is the optimal choice when you need to harness the full power of SQL Server and the benefits of PaaS.
It’s the better fit for:
- Lift and shift migrations – moving current on-premises SQL Server apps to the cloud with minimal code change.
- When your app relies heavily on features that Azure SQL Database doesn’t offer. This includes things like cross-database queries, SQL Server Agent, linked servers and CLR integration.
- When it’s a mandatory security requirement to have a private endpoint within a virtual network.
- Large and demanding enterprise workloads that need consistent resources and predictable performance.
Final Decision Framework: How to Choose the Right SQL Option
The ultimate decision boils down to a few key questions:
- Do you rely on instance-scoped features? Choose Managed Instance to minimize re-architecture.
- Is your app a new cloud-native build or a database with intermittent usage? Database offers the lowest TCO and best PaaS experience.
- Do you need a high level of security isolation or manage multiple databases that need to be grouped together for cost predictability? The better fit is Managed Instance.
Picking the Azure SQL Flavor That Actually Works for You
How do you choose between Azure SQL Server vs Managed Instance? It ultimately comes down to compatibility and cost efficiency.
- A database is optimal for new projects and modernization efforts. Offers the lowest administrative overhead and is the most cloud-native option.
- Managed Instance is ideal for migrations where legacy compatibility is essential and you need a high degree of feature parity with your on-premises server.
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