SQL Managed Instance is the next giant leap for SQL Server Databases in Azure. SQL Managed Instance almost Providing 99 percent features comparing to SQL Server Instance. Migration from On Premise\IAAS SQl server instance to Azure PAAS would be much easier and flexible or even we can say much possible now after introducing Managed SQL instance in Azure.
SQL Managed Instance is new deployment model of Azure SQL Database, providing nearly 99% compatibility with the latest SQL Server on-premises (Enterprise Edition). Microsoft performs all the patching and updating of the code base and manages the underlying infrastructure for you, so you can save time and resources. With high SQL Server compatibility, you can also migrate your databases to SQL Database Managed Instance without changing your apps.
Managed Instance allows existing SQL Server customers to lift and shift their on-premises applications to the cloud with minimal application and database changes. At the same time, Managed Instance preserves all PaaS capabilities (automatic patching and version updates, automated backups, high-availability ), that drastically reduces management overhead and TCO.

The key features of Managed Instance are shown in the following table:
| Feature | Description |
| SQL Server version / build | SQL Server Database Engine (latest stable) |
| Managed automated backups | Yes |
| Built-in instance and database monitoring and metrics | Yes |
| Automatic software patching | Yes |
| The latest Database Engine features | Yes |
| Number of data files (ROWS) per the database | Multiple |
| Number of log files (LOG) per database | 1 |
| VNet – Azure Resource Manager deployment | Yes |
| Portal support | Yes |
| Built-in Integration Service (SSIS) | No – SSIS is a part of Azure Data Factory PaaS |
| Built-in Analysis Service (SSAS) | No – SSAS is separate PaaS |
| Built-in Reporting Service (SSRS) | No – use Power BI or SSRS IaaS |
| SQL Server Agent | SQL Agent is available with some differences comparing to Normal SQL Agent Service. |
| Resource Governer | Yes |
| SQL Profiler | Yes |
| Replication | Replication is available for public preview on Azure SQL Database Managed Instance. A Managed Instance can host publisher, distributor, and subscriber databases. |
| Database Mail | Database Mail features in available in managed instance. |
| Availability | 99.9% Availblity is acieved using Inbuilt Always on Feature. Any Managed instance build could have 3 synchronous Secondary Replicas. |
Purchase Model:
Only VCore Purchase Model is Supported for Managed Instance and Dtu purchase Model is not Supported.
Service Tiers supported in Managed instance are
- General Purpose: Designed for applications with typical performance and IO latency requirements.
- Business Critical: Designed for applications with low IO latency requirements and minimal impact of underlying maintenance operations on the workload.
Both service tiers guarantee 99.99% availability and enable you to independently select storage size and compute capacity
To understand more about Purchase Model and Service Tiers, check on below links,
Licensing:
If you already procured License for SQL Server Instance you shall use the same license to configure SQL Managed instance in Azure since even the Managed instance are billed based on the Core we use, that is in the vCore Purchasing Model
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