Azure SQL Managed Instance

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Our visitors often compare Azure SQL Managed Instance with AWS RDS for SQL Server and Azure SQL Database

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Azure SQL Managed Instance

Deployment and Management

Deployment

Created via Azure portal in a VNet; a few hours to provision fully, but minimal user config (Azure sets up SQL).

Management

Fully managed by Azure – patching, updates, backups handled by service.

Customization

Restricted – cannot access OS or certain features; limited to options Azure exposes (instance size, certain settings).

Use Case

Best for migrating on-prem apps to Azure with minimal changes, needing instance-level features (Agent, cross-DB) but wanting a managed service.

Maintenance and Operations

Maintenance Responsibility

Microsoft – Azure automatically patches OS and SQL engine (with almost no downtime).

Operational Control

Partial – you have instance-level admin in SQL, but no OS access and some server-level permissions are restricted by Azure.

Backups

Automated: Azure performs continuous backups (point-in-time restore up to 35 days); user can initiate extra backups to storage for long-term.

Scalability and Performance

Scalability

Vertical: change vCore count (online resize with brief disruption); Horizontal: limited – one primary instance, can add geo-replicas for read/DR (no multiple writable instances).

Performance

Very good for most cases: GP tier ~ “disk over network” latency (~5-10ms) and up to ~80k IOPS at max vCores, BC tier ~ “local SSD” latency (1-2ms) and up to ~320k IOPS at max size; Azure manages performance, but you might not reach extreme on-prem levels for edge cases.

Elasticity

No auto-scale of vCores on-the-fly; you must manually scale up/down. However, you can add/remove Managed Instances in a pool (instance pools) if using that model for multi-instance elasticity, but that’s more static allocation of multiple MIs.

Features and Capabilities

SQL Server Version

Azure handles the version – effectively it’s the latest SQL Server engine (currently equivalent to 2019/2022). You can’t choose an older engine version, but you can set database compatibility level down to 100 (SQL 2008) for legacy T-SQL compatibility.

SQL Feature Support

Yes, one of MI’s advantages over Azure SQL DB – you can do three-part naming queries across databases on the instance, and even cross-instance via linked servers (within some constraints of managed env).

Cross-Database Queries

Custom Software

No – you cannot RDP into the instance or install anything. CLR assemblies are allowed in SAFE mode within SQL (no external access), but you can’t install a custom extensibility framework or third-party utility on the server. Integration with other services must be done externally over network.

Network and Security

Network Configuration

Deployed into your VNet (requires a dedicated subnet)– it gets a private IP. You manage NSGs for that subnet. By default no public endpoint (optionally can enable one). It’s like a managed appliance sitting in your network.

Security

Platform-managed security: TDE on by default, backups encrypted. Azure manages OS security patches. You can use Azure AD authentication for tighter identity control. MI is deployed in your private network, adding an extra layer of isolation. It meets Azure’s compliance standards out-of-the-box (you just focus on DB-level security like user permissions).

Authentication

SQL Auth and Azure Active Directory Auth supported. You set an AAD admin and then you can use AAD users/groups as logins. No direct Windows AD integration (would need to sync AD to AAD). This gives centralized cloud identity management for the MI.

High Availability and Disaster Recovery

High Availability

Built-in: MI (Business Critical) has HA with automatic failover of the primary replica to a secondary if something happens (Azure handles it). General Purpose has Azure Service Fabric-based failover using remote storage. Either way, you get an SLA for HA without configuring clustering yourself.

Disaster Recovery

Easy DR: you can configure a geo-replica MI in another region (Auto-failover Group). This will asynchronously replicate all databases. Failover can be automatic (for groups) or manual. If you choose not to have a second MI, you still have geo-redundant backups which you could restore in another region (slower recovery).

Pricing and Licensing

Pricing

Azure SQL MI pricing is per vCore, per hour, plus storage and backup costs. An 8 vCore General Purpose instance with 4TB follows an hourly compute + per-GB-month storage model. Business Critical costs 2-3× more per vCore due to faster hardware and extra replicas. SQL licensing is included.

Licensing Model

Azure SQL MI supports License-Included or Azure Hybrid Benefit, which lowers costs if you bring SQL Server licenses with Software Assurance. Reserved Capacity (1-3 years) offers discounts over pay-as-you-go.

Pricing Comparison of Database Configuration

8vCore + 4TB Data size + Backup,  Single Instance

An 8 vCore, 4TB General Purpose Azure SQL MI in East US costs $1,700–$2,000/month ($1,300 compute + $400 storage). Hybrid Benefit can reduce compute costs by 30-40%.

8vCore + 4TB Data size + Backup + DR/HA

A second 8-vCore MI (Auto-Failover Group) doubles the cost to $3,500–$4,000/month. If using Business Critical, an 8 vCore, 4TB instance costs $5,000+ per month, including 3 built-in replicas (no extra VM needed for HA).