SQL Server on Azure VM

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Our visitors often compare SQL Server on Azure VM with SQL Server On-Premises and SQL Server on AWS EC2

AWS RDS for SQL Server Azure SQL Database Azure SQL Managed Instance SQL Server On-Premises SQL Server on AWS EC2

SQL Server on Azure VM

Deployment and Management

Deployment

User deploys an Azure VM (with a SQL image if desired) – similar to EC2, quick to create but you manage SQL setup.

Management

Self-managed, though Azure offers a VM extension for automating SQL patching/backups.

Customization

Maximum – complete OS and SQL control, legacy versions supported.

Use Case

When full control is needed in Azure (legacy apps, custom integrations, SSRS/SSAS); a bridge between on-prem and cloud with control.

Maintenance and Operations

Maintenance Responsibility

You/your team – unless using Azure’s IaaS Agent to auto-patch, you handle updates.

Operational Control

Full control – you can even remote desktop to OS and change anything.

Backups

User-managed (can use Azure Backup or SQL Agent jobs, or enable the SQL VM backup extension for Azure-managed backups)

Scalability and Performance

Scalability

Vertical: change VM size (reboot required); Horizontal: add more VMs (e.g., Always On AG for read scale) – manual setup.

Performance

High (depends on chosen VM and disks): you can use Premium SSD/Ultra Disk on Azure VMs and optimize like on-prem – performance is as good as the hardware allows, with full control.

Elasticity

No native auto-scale – you set a VM size; possible to script something with Azure Automation to scale VMs on a schedule or metric, but it’s user-implemented.

Features and Capabilities

SQL Server Version

Any version (since you control the install media). Azure marketplace images cover currently supported versions (2012+), but you could bring older versions on a custom image if absolutely needed.

SQL Feature Support

All on-box features supported – you can install SSRS on the VM, use SSIS, enable ML Services, etc., just as on a normal server. No limitations beyond what SQL Server normally has.

Cross-Database Queries

Yes, within the SQL instance on that VM you can do cross-database joins/transactions.

Custom Software

Yes – you can treat it like any Windows server: for example, install Splunk forwarders, custom performance collectors, or even run other apps on the same VM (if resources allow).

Network and Security

Network Configuration

Runs in Azure VNet – full control over IP address, subnet, NSGs, etc., like any VM. You can even place multiple VMs in the same subnet for cluster setups. Connect via ExpressRoute/VPN to on-prem easily.

Security

Similar to EC2: you manage OS hardening, patches, SQL security config. Azure can encrypt disks by default, and you can use Azure Key Vault for TDE keys. Azure VM itself is an isolated environment you control. Compliance again is on how you set it up (Azure just provides infrastructure that can be compliant if you configure it so).

Authentication

Windows Auth and SQL Auth supported – join the VM to a domain (on-prem AD or Azure AD Domain Services) and you get integrated security. You can also use contained database users, etc., just like on-prem.

High Availability and Disaster Recovery

High Availability

Must be configured by user – e.g., Always On AG across VMs or a Failover Cluster with Azure Shared Disks or Azure FSx for SMB. Azure provides multi-AZ (multi-zone) VM placement for resilience, but SQL HA is your responsibility.

Disaster Recovery

User-defined: e.g., use Azure Site Recovery to replicate the VM to another region, or set up an AG with a replica in a secondary region for DR. Azure won’t auto-handle cross-region failover for VMs – your DR plan executes it.

Pricing and Licensing

Pricing

Pay for Azure VM + storage. E.g., ~$1.5-2k/month for 8 vCPU VM with SQL Std included. Using Hybrid Benefit (BYOL) might drop that to ~$1k (just VM). Azure RIs can save ~30%. Network egress (if any) is extra.

Licensing Model

License-Included or BYOL. Azure Hybrid Benefit lets you apply existing licenses; or pay-as-you-go includes SQL license. Per-second billing. Enterprise Agreement customers can also get dev/test pricing without SQL costs on Azure for non-prod.

Pricing Comparison of Database Configuration

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

~$1,700/month for 8 vCore GP Azure MI or SQL DB (license included);
~$1,500/month for Azure VM (license included) or ~$1,000 with BYOL.
On-prem ~$1k (Std) as above.

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

HA requires a secondary VM (8 vCore + 4TB) but incurs no extra SQL Server license cost if using Azure Hybrid Benefit.
For DR, a geo-replicated secondary adds ~$1,800/month, bringing total costs to ~$3,400/month (excluding SQL license).
Backup adds ~$120/month. Without Azure Hybrid Benefit, SQL Server licensing adds ~$2,500/month, pushing total cost to ~$5,900/month.
DR and HA both require paying for full VM resources; SQL license charges apply to all nodes unless covered by Hybrid Benefit.