Expanding Azure Arc SQL Migration with a New Target: SQL Server on Azure Virtual Machines
Modernizing a SQL Server estate is rarely a single-step effort. It typically involves multiple phases, from discovery and assessment to migration and optimization, often spanning on-premises, hybrid, and cloud environments. SQL Server enabled by Azure Arc simplifies this process by bringing all migration steps into a single, cohesive experience in the Azure portal. With the March 2026 release, this integrated experience is extended by adding SQL Server on Azure Virtual Machines as a new migration target in Azure Arc. Arc-enabled SQL Server instances can now be migrated not only to Azure SQL Managed Instance, but also to SQL Server running on Azure infrastructure, using the same unified workflow. Expanding Choice Without Adding Complexity By introducing SQL Server on Azure Virtual Machines as a migration target, Azure Arc now supports a broader range of migration strategies while preserving a single operational model. It becomes possible to choose between Azure SQL Managed Instance and SQL Server on Azure VMs without fragmenting migration tooling or processes. The result is a flexible, scalable, and consistent migration experience that supports hybrid environments, reduces operational overhead, and enables modernization at a controlled and predictable pace. One Integrated Migration Journey A core value of SQL Server migration in Azure Arc is that the entire migration lifecycle is managed from one place. Once a SQL Server instance is enabled by Azure Arc, readiness can be assessed, a migration target selected, a migration method chosen, progress monitored, and cutover completed directly in the Azure portal. This approach removes the need for disconnected tools or custom orchestration. The only prerequisite remains unchanged: the source SQL Server needs to be enabled by Azure Arc. From there, migration is fully integrated into the Azure Arc SQL experience. A Consistent Experience Across Migration Targets The migration experience for SQL Server on Azure Virtual Machines follows the same model already available for Azure SQL Managed Instance migrations in Azure Arc. The same guided workflow, migration dashboard, and monitoring capabilities are used regardless of the selected target. This consistency is intentional. It allows teams to choose the destination that best fits their technical, operational, or regulatory requirements without having to learn a new migration process. Whether migrating to a fully managed PaaS service or to SQL Server on Azure infrastructure, the experience remains predictable and familiar. Backup Log Shipping Migration to SQL Server in Azure VM Migration to SQL Server on Azure Virtual Machines is based on backup and restore, specifically using log shipping mechanism. This is a well-established approach for online migrations that minimizes downtime while maintaining control over the cutover window. In this model, database backups need to be uploaded from the source SQL Server to Azure Blob Storage. The migration engine will restore the initial full backup followed by ongoing transaction log and diff. backups. Azure Blob Storage acts as the intermediary staging location between the source and the target. The Azure Blob Storage account and the target SQL Server running on an Azure Virtual Machine must be co-located in the same Azure region. This regional alignment is required to ensure efficient data transfer, reliable restore operations, and predictable migration performance. Within the Azure Arc migration experience, a simple and guided UX is used to select the Azure Blob Storage container that holds the backup files. Both the selected storage account and the Azure VM hosting SQL Server must reside in the same Azure region. Once the migration job is started, Azure Arc automatically restores the backup files to SQL Server on the Azure VM. As new log backups are uploaded to Blob Storage, they are continuously detected and applied to the target database, keeping it closely synchronized with the source. Controlled Cutover on Your Terms This automated restore process continues until the final cutover is initiated. When the cutover command is issued, Azure Arc applies the final backup to the target SQL Server on the Azure Virtual Machine and completes the migration. The target database is then brought online, and applications can be redirected to the new environment. This controlled cutover model allows downtime to be planned precisely, rather than being dictated by long-running restore operations. Getting started To get started, Arc enable you SQL Server. Then, in the Azure portal, navigate to your Arc enabled SQL Server and select Database migration under the Migration menu on the left. For more information, see the SQL Server migration in Azure Arc documentation.Generally Available: Azure SQL Managed Instance Next-gen General Purpose
Overview Next-gen General Purpose is the evolution of General Purpose service tier that brings significantly improved performance and scalability to power up your existing Azure SQL Managed Instance fleet and helps you bring more mission-critical SQL workloads to Azure. We are happy to announce that Next-gen General Purpose is now Generally Available (GA) delivering even more scalability, flexibility, and value for organizations looking to modernize their data platform in a cost-effective way. The new #SQLMINextGen General Purpose tier delivers a built-in performance upgrade available to all customers at no extra cost. If you are an existing SQL MI General Purpose user, you get faster I/O, higher database density, and expanded storage - automatically. Summary Table: Key Improvements Capability Current GP Next-gen GP Improvement Average I/O Latency 5-10 ms 3-4 ms 2x lower Max Data IOPS 30-50k 80k 60% better Max Storage 16 TB 32 TB 2x better Max Databases/Instance 100 500 5x better Max vCores 80 128 40% better But that’s just the beginning. The new configuration sliders for additional IOPS and memory provide enhanced flexibility to tailor performance according to your requirements. Whether you require more resources for your application or seek to optimize resource utilization, you can adjust your instance settings to maximize efficiency and output. This release isn’t just about speed - It’s about giving you improved performance where it matters, and mechanisms to go further when you need them. Customer story - A recent customer case highlights how Hexure reduced processing time by up to 97.2% using Azure SQL Managed Instance on Next-gen General Purpose. What’s new in Next-gen General Purpose (Nov 2025)? 1. Improved baseline performance with the latest storage tech Azure SQL Managed Instance is built on Intel® Xeon® processors, ensuring a strong foundation for enterprise workloads. With the next-generation General Purpose tier, we’ve paired Intel’s proven compute power with advanced storage technology to deliver faster performance, greater scalability, and enhanced flexibility - helping you run more efficiently and adapt to growing business needs. The SQL Managed Instance General Purpose tier is designed with full separation of compute and storage layers. The Classic GP version uses premium page blobs for the storage layer, while the Next-generation GP tier has transitioned to Azure’s latest storage solution, Elastic SAN. Azure Elastic SAN is a cloud-native storage service that offers high performance and excellent scalability, making it a perfect fit for the storage layer of a data-intensive PaaS service like Azure SQL Managed Instance. Simplified Performance Management With ESAN as the storage layer, the performance quotas for the Next-gen General Purpose tier are no longer enforced for each database file. The entire performance quota for the instance is shared across all the database files, making performance management much easier (one fewer thing to worry about). This adjustment brings the General Purpose tier into alignment with the Business Critical service tier experience. 2. Resource flexibility and cost optimization The GA of Next-gen General Purpose comes together with the GA of a transformative memory slider, enabling up to 49 memory configurations per instance. This lets you right-size workloads for both performance and cost. Memory is billed only for the additional amount beyond the default allocation. Users can independently configure vCores, memory, and IOPS for optimal efficiency. To learn more about the new option for configuring additional memory, check the article: Unlocking More Power with Flexible Memory in Azure SQL Managed Instance. 3. Enhanced resource elasticity through decoupled compute and storage scaling operations With Next-gen GP, both storage and IOPS can be resized independently of the compute infrastructure, and these changes now typically finish within five minutes - a process known as an in-place upgrade. There are three distinct types of storage upgrade experiences depending on the kind of storage upgrade performed and whether failover occurs. In-place update: same storage (no data copy), same compute (no failover) Storage re-attach: Same storage (no data copy), changed compute (with failover) Data copy: Changed storage (data copy), changed compute (with failover) The following matrix describes user experience with management operations: Operation Data copying Failover Storage upgrade type IOPS scaling No No In-place Storage scaling* No* No In-place vCores scaling No Yes** Re-attach Memory scaling No Yes** Re-attach Maintenance Window change No Yes** Re-attach Hardware change No Yes** Re-attach Update policy change Yes Yes Data copy * If scale down is >5.5TB, seeding ** In case of update operations that do not require seeding and are not completed in place (examples are scaling vCores, scaling memory, changing hardware or maintenance window), failover duration of databases on the Next-gen General Purpose service tier scales with the number of databases, up to 10 minutes. While the instance becomes available after 2 minutes, some databases might be available after a delay. Failover duration is measured from the moment when the first database goes offline, until the moment when the last database comes online. Furthermore, resizing vCores and memory is now 50% faster following the introduction of the Faster scaling operations release. No matter if you have end-of-month peak periods, or there are ups and downs of usage during the weekdays and the weekend, with fast and reliable management operations, you can run multiple configurations over your instance and respond to peak usage periods in a cost-effective way. 4. Reserved instance (RI) pricing With Azure Reservations, you can commit to using Azure SQL resources for either one or three years, which lets you benefit from substantial discounts on compute costs. When purchasing a reservation, you'll need to choose the Azure region, deployment type, performance tier, and reservation term. Reservations are only available for products that have reached general availability (GA), and with this update, next-generation GP instances now qualify as well. What's even better is that classic and next-gen GP share the same SKU, just with different remote storage types. This means any reservations you've purchased automatically apply to Next-gen GP, whether you're upgrading an existing classic GP instance or creating a new one. What’s Next? The product group has received considerable positive feedback and welcomes continued input. The initial release will not include zonal redundancy; however, efforts are underway to address this limitation. Next-generation General Purpose (GP) represents the future of the service tier, and all existing classic GP instances will be upgraded accordingly. Once upgrade plans are finalized, we will provide timely communication regarding the announcement. Conclusion Now in GA, Next-gen General Purpose sets a new standard for cloud database performance and flexibility. Whether you’re modernizing legacy applications, consolidating workloads, or building for the future, these enhancements put more power, scalability, and control in your hands - without breaking the bank. If you haven’t already, try out the Next-gen General Purpose capabilities for free with Azure SQL Managed Instance free offer. For users operating SQL Managed Instance on the General Purpose tier, it is recommended to consider upgrading existing instances to leverage the advantages of next-gen upgrade – for free. Welcome to #SQLMINextGen. Boosted by default. Tuned by you. Learn more What is Azure SQL Managed Instance Try Azure SQL Managed Instance for free Next-gen General Purpose – official documentation Analyzing the Economic Benefits of Microsoft Azure SQL Managed Instance How 3 customers are driving change with migration to Azure SQL Accelerate SQL Server Migration to Azure with Azure ArcAzure Data Studio Retirement
We’re announcing the upcoming retirement of Azure Data Studio (ADS) on February 6, 2025, as we focus on delivering a modern, streamlined SQL development experience. ADS will remain supported until February 28, 2026, giving developers ample time to transition. This decision aligns with our commitment to simplifying SQL development by consolidating efforts on Visual Studio Code (VS Code) with the MSSQL extension, a powerful and versatile tool designed for modern developers. Why Retire Azure Data Studio? Azure Data Studio has been an essential tool for SQL developers, but evolving developer needs and the rise of more versatile platforms like VS Code have made it the right time to transition. Here’s why: Focus on innovation VS Code, widely adopted across the developer community, provides a robust platform for delivering advanced features like cutting-edge schema management and improved query execution. Streamlined tools Consolidating SQL development on VS Code eliminates duplication, reduces engineering maintenance overhead, and accelerates feature delivery, ensuring developers have access to the latest innovations. Why Transition to Visual Studio Code? VS Code is the #1 developer tool, trusted by millions worldwide. It is a modern, versatile platform that meets the evolving demands of SQL and application developers. By transitioning, you gain access to cutting-edge tools, seamless workflows, and an expansive ecosystem designed to enhance productivity and innovation. We’re committed to meeting developers where they are, providing a modern SQL development experience within VS Code. Here’s how: Modern development environment VS Code is a lightweight, extensible, and community-supported code editor trusted by millions of developers. It provides: Regular updates. An active extension marketplace. A seamless cross-platform experience for Windows, macOS, and Linux. Comprehensive SQL features With the MSSQL extension in VS Code, you can: Execute queries faster with filtering, sorting, and export options for JSON, Excel, and CSV. Manage schemas visually with Table Designer, Object Explorer, and support for keys, indexes, and constraints. Connect to SQL Server, Azure SQL (all offerings), and SQL database in Fabric using an improved Connection Dialog. Streamline development with scripting, object modifications, and a unified SQL experience. Optimize performance with an enhanced Query Results Pane and execution plans. Integrate with DevOps and CI/CD pipelines using SQL Database Projects. Stay tuned for upcoming features—we’re continuously building new experiences based on feedback from the community. Make sure to follow the MSSQL repository on GitHub to stay updated and contribute to the project! Streamlined workflow VS Code supports cloud-native development, real-time collaboration, and thousands of extensions to enhance your workflows. Transitioning to Visual Studio Code: What You Need to Know We understand that transitioning tools can raise concerns, but moving from Azure Data Studio (ADS) to Visual Studio Code (VS Code) with the MSSQL extension is designed to be straightforward and hassle-free. Here’s why you can feel confident about this transition: No Loss of Functionality If you use ADS to connect to Azure SQL databases, SQL Server, or SQL database in Fabric, you’ll find that the MSSQL extension supports these scenarios seamlessly. Your database projects, queries, and scripts created in ADS are fully compatible with VS Code and can be opened without additional migration steps. Familiar features, enhanced experience VS Code provides advanced tools like improved query execution, modern schema management, and CI/CD integration. Additionally, alternative tools and extensions are available to replace ADS capabilities like SQL Server Agent and Schema Compare. Cross-Platform and extensible Like ADS, VS Code runs on Windows, macOS, and Linux, ensuring a consistent experience across operating systems. Its extensibility allows you to adapt it to your workflow with thousands of extensions. If you have further questions or need detailed guidance, visit the ADS Retirement page. The page includes step-by-step instructions, recommended alternatives, and additional resources. Continued Support With the Azure Data Studio retirement, we’re committed to supporting you during this transition: Documentation: Find detailed guides, tutorials, and FAQs on the ADS Retirement page. Community Support: Engage with the active Visual Studio Code community for tips and solutions. You can also explore forums like Stack Overflow. GitHub Issues: If you encounter any issues, submit a request or report bugs on the MSSQL extension’s GitHub repository. Microsoft Support: For critical issues, reach out to Microsoft Support directly through your account. Transitioning to VS Code opens the door to a more modern and versatile SQL development experience. We encourage you to explore the new possibilities and start your journey today! Conclusion Azure Data Studio has served the SQL community well,but the Azure Data Studio retirement marks an opportunity to embrace the modern capabilities of Visual Studio Code. Transitioning now ensures you’re equipped with cutting-edge tools and a future-ready platform to enhance your SQL development experience. For a detailed guide on ADS retirement , visit aka.ms/ads-retirement. To get started with the MSSQL extension, check out the official documentation. We’re excited to see what you build with VS Code!Securing Azure SQL Database with Microsoft Entra Password-less Authentication: Migration Guide
The Secure Future Initiative is Microsoft’s strategic framework for embedding security into every layer of the data platform—from infrastructure to identity. As part of this initiative, Microsoft Entra authentication for Azure SQL Database offers a modern, password less approach to access control that aligns with Zero Trust principles. By leveraging Entra identities, customers benefit from stronger security postures through multifactor authentication, centralized identity governance, and seamless integration with managed identities and service principals. Onboarding Entra authentication enables organizations to reduce reliance on passwords, simplify access management, and improve auditability across hybrid and cloud environments. With broad support across tools and platforms, and growing customer adoption, Entra authentication is a forward-looking investment in secure, scalable data access. Migration Steps Overview Organizations utilizing SQL authentication can strengthen database security by migrating to Entra Id-based authentication. The following steps outline the process. Identify your logins and users – Review the existing SQL databases, along with all related users and logins, to assess what’s needed for migration. Enable Entra auth on Azure SQL logical servers by assigning a Microsoft Entra admin. Identify all permissions associated with the SQL logins & Database users. Recreate SQL logins and users with Microsoft Entra identities. Upgrade application drivers and libraries to min versions & update application connections to SQL Databases to use Entra based managed identities. Update deployments for SQL logical server resources to have Microsoft Entra-only authentication enabled. For all existing Azure SQL Databases, flip to Entra‑only after validation. Enforce Entra-only for all Azure SQL Databases with Azure Policies (deny). Step 1: Identify your logins and users - Use SQL Auditing Consider using SQL Audit to monitor which identities are accessing your databases. Alternatively, you may use other methods or skip this step if you already have full visibility of all your logins. Configure server‑level SQL Auditing. For more information on turning the server level auditing: Configure Auditing for Azure SQL Database series - part1 | Microsoft Community Hub SQL Audit can be enabled on the logical server, which will enable auditing for all existing and new user databases. When you set up auditing, the audit log will be written to your storage account with the SQL Database audit log format. Use sys.fn_get_audit_file_v2 to query the audit logs in SQL. You can join the audit data with sys.server_principals and sys.database_principals to view users and logins connecting to your databases. The following query is an example of how to do this: SELECT (CASE WHEN database_principal_id > 0 THEN dp.type_desc ELSE NULL END) AS db_user_type , (CASE WHEN server_principal_id > 0 THEN sp.type_desc ELSE NULL END) AS srv_login_type , server_principal_name , server_principal_sid , server_principal_id , database_principal_name , database_principal_id , database_name , SUM(CASE WHEN succeeded = 1 THEN 1 ELSE 0 END) AS sucessful_logins , SUM(CASE WHEN succeeded = 0 THEN 1 ELSE 0 END) AS failed_logins FROM sys.fn_get_audit_file_v2( '<Storage_endpoint>/<Container>/<ServerName>', DEFAULT, DEFAULT, '2023-11-17T08:40:40Z', '2023-11-17T09:10:40Z') -- join on database principals (users) metadata LEFT OUTER JOIN sys.database_principals dp ON database_principal_id = dp.principal_id -- join on server principals (logins) metadata LEFT OUTER JOIN sys.server_principals sp ON server_principal_id = sp.principal_id -- filter to actions DBAF (Database Authentication Failed) and DBAS (Database Authentication Succeeded) WHERE (action_id = 'DBAF' OR action_id = 'DBAS') GROUP BY server_principal_name , server_principal_sid , server_principal_id , database_principal_name , database_principal_id , database_name , dp.type_desc , sp.type_desc Step 2: Enable Microsoft Entra authentication (assign admin) Follow this to enable Entra authentication and assign a Microsoft Entra admin at the server. This is mixed mode; existing SQL auth continues to work. WARNING: Do NOT enable Entra‑only (azureADOnlyAuthentications) yet. That comes in Step 7. Entra admin Recommendation: For production environments, it is advisable to utilize an PIM Enabled Entra group as the server administrator for enhanced access control. Step 3: Identity & document existing permissions (SQL Logins & Users) Retrieve a list of all your SQL auth logins. Make sure to run on the master database.: SELECT * FROM sys.sql_logins List all SQL auth users, run the below query on all user Databases. This would list the users per Database. SELECT * FROM sys.database_principals WHERE TYPE = 'S' Note: You may need only the column ‘name’ to identify the users. List permissions per SQL auth user: SELECT database_principals.name , database_principals.principal_id , database_principals.type_desc , database_permissions.permission_name , CASE WHEN class = 0 THEN 'DATABASE' WHEN class = 3 THEN 'SCHEMA: ' + SCHEMA_NAME(major_id) WHEN class = 4 THEN 'Database Principal: ' + USER_NAME(major_id) ELSE OBJECT_SCHEMA_NAME(database_permissions.major_id) + '.' + OBJECT_NAME(database_permissions.major_id) END AS object_name , columns.name AS column_name , database_permissions.state_desc AS permission_type FROM sys.database_principals AS database_principals INNER JOIN sys.database_permissions AS database_permissions ON database_principals.principal_id = database_permissions.grantee_principal_id LEFT JOIN sys.columns AS columns ON database_permissions.major_id = columns.object_id AND database_permissions.minor_id = columns.column_id WHERE type_desc = 'SQL_USER' ORDER BY database_principals.name Step 4: Create SQL users for your Microsoft Entra identities You can create users(preferred) for all Entra identities. Learn more on Create user The "FROM EXTERNAL PROVIDER" clause in TSQL distinguishes Entra users from SQL authentication users. The most straightforward approach to adding Entra users is to use a managed identity for Azure SQL and grant the required three Graph API permissions. These permissions are necessary for Azure SQL to validate Entra users. User.Read.All: Allows access to Microsoft Entra user information. GroupMember.Read.All: Allows access to Microsoft Entra group information. Application.Read.ALL: Allows access to Microsoft Entra service principal (application) information. For creating Entra users with non-unique display names, use Object_Id in the Create User TSQL: -- Retrieve the Object Id from the Entra blade from the Azure portal. CREATE USER [myapp4466e] FROM EXTERNAL PROVIDER WITH OBJECT_ID = 'aaaaaaaa-0000-1111-2222-bbbbbbbbbbbb' For more information on finding the Entra Object ID: Find tenant ID, domain name, user object ID - Partner Center | Microsoft Learn Alternatively, if granting these API permissions to SQL is undesirable, you may add Entra users directly using the T-SQL commands provided below. In these scenarios, Azure SQL will bypass Entra user validation. Create SQL user for managed identity or an application - This T-SQL code snippet establishes a SQL user for an application or managed identity. Please substitute the `MSIname` and `clientId` (note: use the client id, not the object id), variables with the Display Name and Client ID of your managed identity or application. -- Replace the two variables with the managed identity display name and client ID declare @MSIname sysname = '<Managed Identity/App Display Name>' declare @clientId uniqueidentifier = '<Managed Identity/App Client ID>'; -- convert the guid to the right type and create the SQL user declare @castClientId nvarchar(max) = CONVERT(varchar(max), convert (varbinary(16), @clientId), 1); -- Construct command: CREATE USER [@MSIname] WITH SID = @castClientId, TYPE = E; declare nvarchar(max) = N'CREATE USER [' + @MSIname + '] WITH SID = ' + @castClientId + ', TYPE = E;' EXEC (@cmd) For more information on finding the Entra Client ID: Register a client application in Microsoft Entra ID for the Azure Health Data Services | Microsoft Learn Create SQL user for Microsoft Entra user - Use this T-SQL to create a SQL user for a Microsoft Entra account. Enter your username and object Id: -- Replace the two variables with the MS Entra user alias and object ID declare sysname = '<MS Entra user alias>'; -- (e.g., username@contoso.com) declare uniqueidentifier = '<User Object ID>'; -- convert the guid to the right type declare @castObjectId nvarchar(max) = CONVERT(varchar(max), convert (varbinary(16), ), 1); -- Construct command: CREATE USER [@username] WITH SID = @castObjectId, TYPE = E; declare nvarchar(max) = N'CREATE USER [' + + '] WITH SID = ' + @castObjectId + ', TYPE = E;' EXEC (@cmd) Create SQL user for Microsoft Entra group - This T-SQL snippet creates a SQL user for a Microsoft Entra group. Set groupName and object Id to your values. -- Replace the two variables with the MS Entra group display name and object ID declare @groupName sysname = '<MS Entra group display name>'; -- (e.g., ContosoUsersGroup) declare uniqueidentifier = '<Group Object ID>'; -- convert the guid to the right type and create the SQL user declare @castObjectId nvarchar(max) = CONVERT(varchar(max), convert (varbinary(16), ), 1); -- Construct command: CREATE USER [@groupName] WITH SID = @castObjectId, TYPE = X; declare nvarchar(max) = N'CREATE USER [' + @groupName + '] WITH SID = ' + @castObjectId + ', TYPE = X;' EXEC (@cmd) For more information on finding the Entra Object ID: Find tenant ID, domain name, user object ID - Partner Center | Microsoft Learn Validate SQL user creation - When a user is created correctly, the EntraID column in this query shows the user's original MS Entra ID. select CAST(sid as uniqueidentifier) AS EntraID, * from sys.database_principals Assign permissions to Entra based users – After creating Entra users, assign them SQL permissions to read or write by either using GRANT statements or adding them to roles like db_datareader. Refer to your documentation from Step 3, ensuring you include all necessary user permissions for new Entra SQL users and that security policies remain enforced. Step 5: Update Programmatic Connections Change your application connection strings to managed identities for SQL authentication and test each app for Microsoft Entra compatibility. Upgrade your drivers to these versions or newer. JDBC driver version 7.2.0 (Java) ODBC driver version 17.3 (C/C++, COBOL, Perl, PHP, Python) OLE DB driver version 18.3.0 (COM-based applications) Microsoft.Data.SqlClient 5.2.2+ (ADO.NET) Microsoft.EntityFramework.SqlServer 6.5.0 (Entity Framework) System.Data.SqlClient(SDS) doesn't support managed identity; switch to Microsoft.Data.SqlClient(MDS). If you need to port your applications from SDS to MDS the following cheat sheet will be helpful: https://github.com/dotnet/SqlClient/blob/main/porting-cheat-sheet.md. Microsoft.Data.SqlClient also takes a dependency on these packages & most notably the MSAL for .NET (Version 4.56.0+). Here is an example of Azure web application connecting to Azure SQL, using managed identity. Step 6: Validate No Local Auth Traffic Be sure to switch all your connections to managed identity before you redeploy your Azure SQL logical servers with Microsoft Entra-only authentication turned on. Repeat the use of SQL Audit, just as you did in Step 1, but now to confirm that every connection has moved away from SQL authentication. Once your server is up and running with only Entra authentication, any connections still based on SQL authentication will not work, which could disrupt services. Test your systems thoroughly to verify that everything operates correctly. Step 7: Enable Microsoft Entra‑only & disable local auth Once all your connections & applications are built to use managed identity, you can disable the SQL Authentication, by turning the Entra-only authentication via Azure portal, or using the APIs. Step 8: Enforce at scale (Azure Policy) Additionally, after successful migration and validation, it is recommended to deploy the built-in Azure Policy across your subscriptions to ensure that all SQL resources do not use local authentication. During resource creation, Azure SQL instances will be required to have Microsoft Entra-only authentication enabled. This requirement can be enforced through Azure policies. Best Practices for Entra-Enabled Azure SQL Applications Use exponential backoff with decorrelated jitter for retrying transient SQL errors, and set a max retry cap to avoid resource drain. Separate retry logic for connection setup and query execution. Cache and proactively refresh Entra tokens before expiration. Use Microsoft.Data.SqlClient v3.0+ with Azure.Identity for secure token management. Enable connection pooling and use consistent connection strings. Set appropriate timeouts to prevent hanging operations. Handle token/auth failures with targeted remediation, not blanket retries. Apply least-privilege identity principles; avoid global/shared tokens. Monitor retry counts, failures, and token refreshes via telemetry. Maintain auditing for compliance and security. Enforce TLS 1.2+ (Encrypt=True, TrustServerCertificate=False). Prefer pooled over static connections. Log SQL exception codes for precise error handling. Keep libraries and drivers up to date for latest features and resilience. References Use this resource to troubleshoot issues with Entra authentication (previously known as Azure AD Authentication): Troubleshooting problems related to Azure AD authentication with Azure SQL DB and DW | Microsoft Community Hub To add Entra users from an external tenant, invite them as guest users to the Azure SQL Database's Entra administrator tenant. For more information on adding Entra guest users: Quickstart: Add a guest user and send an invitation - Microsoft Entra External ID | Microsoft Learn Conclusion Migrating to Microsoft Entra password-less authentication for Azure SQL Database is a strategic investment in security, compliance, and operational efficiency. By following this guide and adopting best practices, organizations can reduce risk, improve resilience, and future-proof their data platform in alignment with Microsoft’s Secure Future Initiative.Introducing Azure SQL Managed Instance Next-gen GP
The next generation of the general purpose service tier for Azure SQL Managed Instance is a major upgrade that will considerably improve the storage performance of your instances while keeping the same price as current general purpose tier. Key improvements in the next generation of general purpose storage include support for 32 TB of storage, support for 500 DBs, lower storage latency, improved storage performance, and the ability to configure the amount of IOPS (I/O operations per second).
Introducing the Azure SQL hub: A simpler, guided entry into Azure SQL
Choosing the right Azure SQL service can be challenging. To make this easier, we built the Azure SQL hub, a new home for everything related to Azure SQL in the Azure portal. Whether you’re new to Azure SQL or an experienced user, the hub helps you find the right service quickly and decide, without disrupting your existing workflows. For existing users: Your current workflows remain unchanged. The only visible update is a streamlined navigation pane where you access Azure SQL resources. For new users: Start from the Azure SQL hub home page. Get personalized recommendations by answering a few quick questions or chatting with Azure portal Copilot. Or compare services side by side and explore key resources, all without leaving the portal. This is one way to find it: Searching for "azure sql" in main search box or marketplace is also efficient way to get to Azure SQL hub Answer a few questions to get our recommendation and use Copilot to refine your requirements. Get a detailed side-by-side comparison without leaving the hub. Still deciding? Explore a selection of Azure SQL services for free. This option takes you straight to the resource creation page with a pre-applied free offer. Try the Azure SQL hub today in the Azure portal, and share your feedback in the comments!
Windows Authentication for Cloud-Native Identities: Modernizing Azure SQL Managed Instance (Preview)
Organizations moving to the cloud often face a critical challenge: maintaining seamless authentication for legacy applications without compromising security or user experience. Today, we’re excited to announce support for Windows Authentication for Microsoft Entra principals on Azure SQL Managed Instance, enabling cloud-native identities to authenticate using familiar Windows credentials. Why This Matters Traditionally, Windows Authentication relied on on-premises Active Directory, making it difficult for businesses adopting a cloud-only strategy to preserve existing authentication models. With this new capability: Hybrid Identity Support: Users synchronized between on-premises AD DS and Microsoft Entra ID can continue using a single set of credentials for both environments. Cloud-Only Identity (Preview): Identities that exist only in Microsoft Entra ID can now leverage Kerberos-based Windows Authentication for workloads like Azure SQL Managed Instance—without requiring domain controllers. This means organizations can modernize infrastructure while maintaining compatibility with legacy apps, reducing friction during migration. Key Benefits Seamless Migration: Move legacy applications to Azure SQL Managed Instance without rewriting authentication logic. Passwordless Security: Combine Windows Authentication with modern credentials like Windows Hello for Business or FIDO2 keys, enabling MFA and reducing password-related risks. Cloud-Native Integration: Microsoft Entra Kerberos acts as a cloud-based Key Distribution Center (KDC), issuing Kerberos tickets for cloud resources such as Azure SQL Managed Instance and Azure Files Breaking Barriers to Cloud Migration Many enterprises hesitate to migrate legacy apps because they depend on Windows Authentication. By extending this capability to cloud-native identities, we remove a major barrier—allowing customers to modernize at their own pace while leveraging familiar authentication models. Learn More https://learn.microsoft.com/en-us/azure/azure-sql/managed-instance/winauth-azuread-overview?view=azuresql Microsoft Entra Kerberos OverviewConvert geo-replicated databases to Hyperscale
Update: On 22 October 2025 we announced the General Availability for this improvement. We’re excited to introduce the next improvement in Hyperscale conversion: a new feature that allows customers to convert Azure SQL databases to Hyperscale by keeping active geo-replication or failover group configurations intact. This builds on our earlier improvements and directly addresses one of the most requested capabilities from customers. With this improvement, customers can now modernize your database architecture with Hyperscale while maintaining business continuity. Overview We have heard feedback from customers about possible improvements we could make while converting their databases to Hyperscale. Customers complained about the complex steps they needed to perform to convert a database to Hyperscale when the database is geo-replicated by active geo-replication or failover groups. Previously, converting to Hyperscale required tearing down geo-replication links and recreating them after the conversion. Now, that’s no longer necessary. This improvement allows customers to preserve their cross-region disaster recovery or read scale-out configurations and still allows conversion to Hyperscale which helps in minimizing downtime and operational complexity. This feature is especially valuable for applications that rely on failover group endpoints for connectivity. Before this improvement, if application needs to be available during conversion, then connection string needed modifications as a part of conversion because the failover group and its endpoints had to be removed. With this new improvement, the conversion process is optimized for minimal disruption, with telemetry showing majority of cutover times under one minute. Even with a geo-replication configuration in place, you can still choose between automatic and manual cutover modes, offering flexibility in scheduling the transition. Progress tracking is now more granular, giving customers better visibility into each stage of the conversion, including the conversion of the geo-secondary to Hyperscale. Customer feedback Throughout the preview phase, we have received overwhelmingly positive feedback from several customers about this improvement. Viktoriia Kuznetcova, Senior Automation Test Engineer from Nintex says: We needed a low-downtime way to move our databases from the Premium tier to Azure SQL Database Hyperscale, and this new feature delivered perfectly; allowing us to complete the migration in our test environments safely and smoothly, even while the service remained under continuous load, without any issues and without needing to break the failover group. We're looking forward to the public release so we can use it in production, where Hyperscale’s ability to scale storage both up and down will help us manage peak loads without overpaying for unused capacity. Get started The good news is that there are no changes needed to the conversion process. The workflow automatically detects that a geo-secondary is present and converts it to Hyperscale. There are no new parameters, and the method remains the same as the existing conversion process which works for non-geo-replicated databases. All you need is to make sure that: You have only one geo-secondary replica because Hyperscale doesn't support more than one geo-secondary replica. If a chained geo-replication configuration exists, it must be removed before starting the conversion to Hyperscale. Creating a geo-replica of a geo-replica (also known as "geo-replica chaining") isn't supported in Hyperscale. Once the above requirements are satisfied, you can use any of the following methods to initiate the conversion process. Conversion to Hyperscale must be initiated starting from the primary geo-replica. The following table provides sample commands to convert a database named WideWorldImporters on a logical server called contososerver to an 8-vcore Hyperscale database with manual cutover option. Method Command T-SQL ALTER DATABASE WideWorldImporters MODIFY (EDITION = 'Hyperscale', SERVICE_OBJECTIVE = 'HS_Gen5_8') WITH MANUAL_CUTOVER; PowerShell Set-AzSqlDatabase -ResourceGroupName "ResourceGroup01" -ServerName "contososerver" -DatabaseName "WideWorldImporters" -Edition "Hyperscale" -RequestedServiceObjectiveName "HS_Gen5_8" -ManualCutover Azure CLI az sql db update --resource-group ResourceGroup01 --server contososerver --name WideWorldImporters --edition Hyperscale --service-objective HS_Gen5_8 --manual-cutover Here are some notable details of this improvement: The geo-secondary database is automatically converted to Hyperscale with the same service level objective as the primary. All database configurations such as maintenance window, zone-resiliency, backup redundancy etc. remain the same as earlier (i.e., both geo-primary and geo-secondary would inherit from their own earlier configuration). A planned failover isn't possible while the conversion to Hyperscale is in progress. A forced failover is possible. However, depending on the state of the conversion when the forced failover occurs, the new geo-primary after failover might use either the Hyperscale service tier, or its original service tier. If the geo-secondary database is in an elastic pool before conversion, it is taken out of the pool and might need to be added back to a Hyperscale elastic pool separately after the conversion. This feature has been fully deployed across all Azure regions. In case you see error (Update to service objective '<SLO name>' with source DB geo-replicated is not supported for entity '<Database Name>') while converting primary to Hyperscale, we would like to hear from you. Do send us an email to the email ID give in next section. If you don’t want to use this capability, make sure to remove any geo-replication configuration before converting your databases to Hyperscale. Conclusion This update marks a significant step forward in the Hyperscale conversion process, offering simple steps, less downtime and keeping the geo-secondary available during the conversion process. We encourage you to try this capability and provide your valuable feedback and help us refine this feature. You can contact us by commenting on this blog post and we’ll be happy to get back to you. Alternatively, you can also email us at sqlhsfeedback AT microsoft DOT com. We are eager to hear from you all!
