Final answer:
Azure SQL Database is a fully managed, scalable database service focused on single or pooled databases for cloud applications, while Azure SQL Managed Instance offers features closer to an on-premises SQL Server, easing migration of existing databases to the cloud.
Step-by-step explanation:
The Azure SQL Database and Azure SQL Managed Instance are both cloud-based database services provided by Azure. However, they offer different levels of control and compatibility for existing SQL Server applications.
Azure SQL Database is a fully managed platform as a service (PaaS) that provides a single or pooled database with automated scaling, patching, and backups, making it suitable for modern cloud applications that want to use the latest stable SQL Server features without worrying about infrastructure.
In contrast, Azure SQL Managed Instance delivers an environment more similar to a SQL Server instance with full VNet support, allowing for cross-database queries and transactions, SQL Server Agent, and additional SQL Server features like Service Broker and Common Language Runtime (CLR), which are not available in Azure SQL Database. It bridges the gap between Azure SQL Database and an on-premises full SQL Server instance, providing an easier migration pathway for existing SQL Server databases to the cloud.