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Azure SQL Database is a fully managed relational database service with built-in features like automated backups, automatic patching, and automatic scaling. It's a Platform as a Service (PaaS) offering that provides database as a service for applications hosted on Azure.

Azure SQL Managed Instance is a fully managed database service that is designed to support SQL Server workloads. It offers a more comprehensive and robust set of features compared to Azure SQL Database, including support for features like cross-database querying, SQL Server Integration Services (SSIS), and SQL Server Agent.

Some of the key differences between Azure SQL Database and Azure SQL Managed Instance include:

  • Compatibility: Azure SQL Managed Instance is built to be compatible with SQL Server workloads, while Azure SQL Database is designed for more general-purpose database needs.

  • Scalability: Azure SQL Database has a more limited set of scaling options compared to Azure SQL Managed Instance, which offers more granular control over scaling and resources.

  • Performance: Azure SQL Managed Instance offers higher performance, with support for more memory-intensive workloads and faster query processing.

  • Security: Azure SQL Managed Instance offers more robust security features, including support for Active Directory authentication and transparent data encryption.

  • Cost: Azure SQL Managed Instance is generally more expensive than Azure SQL Database, due to its more comprehensive set of features and support for larger workloads.