I would like to know what extra benefits one get by choosing Azure SQL Managed Instance compared to Azure SQL DB PaaS. I know SQL Managed Instance is offered as a vCore based purchasing model only. Apart from this what is the extra add on and benefits that one gets over the other. Any reply would be appreciated.
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Azure SQL database host on Azure directly, Azure SQL managed instance is mostly like SQL Server which hosted on the Azure VM. The most difference between SQL database and Managed instance is the SQL difference, such as USE statemen is not supported in SQL database. – Leon Yue Sep 26 '20 at 14:48
3 Answers
With Azure SQL Managed Instance, you essentially get a full fledged SQL Server that you can control any way you want, just like you would control a locally configured SQL Server. All the power and access and customization you want.
With, Azure SQL DB PaaS, you are essentially getting a database service, so, you give up a lot of control.
For example, take server collation. With the database service, SQL_Latin1_General_CP1_CI_AS , is all you get. With the Managed Instance, its your server. So, go ahead and select whatever collation you want, just like how you would select the collation at the time of creatoin.
Another issue is with auditing, if that is something that is important to your setup. with SQL Managed Instance, auditing happens at server level, because, you are getting the full database server. With the database service, it only database, because, you are only getting a database.
These are just the main details that I found. more details here at this Azure doc - https://learn.microsoft.com/en-us/azure/azure-sql/database/features-comparison
Of course, Managed is going to cost you more because you are paying for the license of the SQL server too.
Lastly, for me, this is the almost (not the exact same thing) like you running your own File Server on a Windows VM on Azure (Managed Instance) versus, just using Blob Storage. In both cases, you are just trying to store some files, but its how much control you have.

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I might be missing something but the pricing seems comparable between Single Database and Managed Instance. Choosing 4 vCore, General Purpose, UK South, Gen 5, and pay as you go comes to around 840$ for both at time of writing. – Gunnar Már Óttarsson May 13 '21 at 23:26
I would say think about Azure SQL DB vs Azure SQL Managed Instance (MI) as
Azure SQL DB = Resources dedicated to individual DBs like a container. They are grouped under a Azure SQL Server but that SQL Server is just for grouping.
Azure SQL MI = Almost same as on-prem SQL Server except you don't have to worry about OS, backups, high availability.
Here is a good comparison. https://learn.microsoft.com/en-us/azure/azure-sql/database/features-comparison
Hopefully this will help

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- Azure SQL Database - The usual PaaS way. You have vCore, DTU, and Serverless billing mode. And Elastic pool support.
- Azure SQL Managed Instance - Similar as below. When you want to use instance-scoped features of Azure SQL Managed Instance like Service Broker, CLR, SQL Server Agent, and Linked servers. As if you have an SQL Server on premise, Azure is responsible for patching, upgrading version etc.
- SQL Server on Azure Virtual Machines - Similar as above. But you are responsible for OS and SQL server upgrade.

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