Forecast Cloudy – Set Up SQL Server Managed Instance via Azure PowerShell


Managed Instance is a new managed database service that represents fully-managed SQL Server Instance in Azure cloud. It shares the same code with the latest version of SQL Server Database Engine and has the latest features, performance improvements, and security patches.

Let’s step back and look at why Azure SQL Managed Instances are being released? Currently there is a gap of functionality between the retail SQL Server and Azure SQL Database. For example: a client that has an application that uses multiple databases and lots of code using three part names. Azure SQL Database doesn’t support three part names, so if you wanted to migrate this instance to Azure, your only choice would be to deploy and manage it as a SQL Server VM on IaaS. And yes, you can enable backup and patching agents, but at the end of the day, the configuration of the VM, maintenance of the OS and all the responsibility for SQL Server is still in your hands.

This is where the Azure SQL Managed Instance comes in. It provides a fully managed, higher feature-compatible instance that is a lot more similar to the SQL Server instance concept that we all know from the retail product. You don’t have to be responsible of every bit like with IaaS, while at the same time, you can continue running as an instance, with the features that are not compatible with the Azure SQL Database single database model. This means migration is straightforward without having to worry about compatibility or features not supported. It’s also easier because you don’t have to build every single piece of IaaS.

If you have experience with Azure SQL Database you might be thinking, how does this compare to the elastic database pools? The difference is that the pools are still created from databases that are single entities and the only thing they share are the elastic resources. On the other hand, Azure SQL Managed Instance will hold the database inside the instance container so they will be able to use three part names, linked servers, and other features that we are accustomed to using on the on-premises SQL Server.

Best of all, because Azure SQL Managed Instance is built on top of the PaaS framework that powers Azure SQL Database, once it’s migrated, it is fully managed in terms of OS, built-in HA, backups, etc.

As we can see in the diagram below, Azure SQL Managed Instance sits between having a full VM running SQL Server and the fully contained individual database paradigm of Azure SQL Database. And just like Azure SQL Db, with a Managed Instance the client can enjoy the continuous improvement and release of features that come with Microsoft’s cloud-first development model.


Managed Instance is a resource in your network hosted by Azure cloud. You need to create Azure VNET and a dedicated subnet where the instance should be deployed. There are some networking constraints for the VNET/subnet that you need to review before you create a managed instance. There is no public IP address dedicated to the Managed Instance. Only applications in customer network can access Managed Instance. In addition, your network administrators have the full control and can configure access to Managed Instance using standard methods such as Network security Groups and firewalls.

Managed Instance enables you to choose how many CPU cores you want to use and how much storage you need. You can create a Managed Instance with 16 cores and 500GB storage, and then increase or decrease these numbers depending on your needs. Changing CPU or storage in instance can be done via Azure portal using simple slider:


Architecture of Managed Instance.

Managed Instance has split compute and storage components. You have compute nodes with 8, 16, or 24 cores, that work with database files stored on Azure Premium disk storage. Every database file is placed on separate Azure premium disk, that guarantees that database files cannot be lost. Although Managed Instance relies on Azure Premium disks, it also has separate backup mechanism that ensures that even if something would happen with the files, platform would still be able to restore files from backups.


There are also redundant passive nodes that are used to fail-over compute instance if needed.

Managed Instance is fully Platform as a Service database offer. High availability, automated backups, point-in-time restore, automatic plan correction, threat detection, vulnerability assessment, and other intelligent features are built-in into service     without any additional charge.

OS patching and database upgrades are handled automatically and do not require any action.

In addition to built-in monitoring and maintenance features, you can use any 3rd-party tool to monitor and manage your instance, because most of the system views are exposed.

Connecting to Managed Instance

Azure SQL Managed Instance is not a service on public endpoint. Azure SQL Managed Instance is placed on private IP address in your VNET. It is just hosted and managed by Azure cloud.


There are several ways to connect to your Managed Instance.

  1. You can create VPN connection between your on-premises network and Azure VNET where Managed Instance is placed. Managed Instance will be seen as any other SQL Server in your network.
  2. You can connect via some Azure VM in your Azure VNET (using standard RDP or via some app that is in your Azure VM). If your VM is placed in some other AzureVNET you need to establish peering between these two networks.
  3. You can Connect your web application to Managed Instance using Azure Apps VNET Integration or by placing your Web App into App Service environment that is placed in VNET. If your Web App or App service Environment is placed in another VNET, you need to establish peering between these two networks.

For more on Connecting see

I want to create Managed Instance and test it out, how do I do it?

Assuming you  have created  Site-To-Site VPN of sorts at least we will need to place Managed Instance in special subnet inside a VNET connected to that VPN so Managed Instance can be seen from on premises.  Here are official docs for network configuration – and . Custom DNS may need to be set in Azure like this – .

I used  Azure PowerShell  below to login to Azure Subscription connected to my on-premises network via Express Route and set up VNET, Subnets and Managed Instance itself, here is example script I run to create Demo instance.  Obviously disregard my subscription, VNET, subnet names, address ranges, etc, instead substitute proper values for you:

$SubscriptionName = ‘Visual Studio Enterprise’
$resourceGroup = ‘SQLMIDemo’
$location = ‘East US’
$vNetName = ‘SQLMIDemoVNET’

#login to azure
Select-AzureRmSubscription $SubscriptionName

#create resource group
New-AzureRmResourceGroup -ResourceGroupName $resourceGroup -Location $location

#create new virtual network
$virtualNetwork = New-AzureRmVirtualNetwork -ResourceGroupName $resourceGroup -Location $location -Name $vNetName -AddressPrefix

#create default subnet
$subnetConfig = Add-AzureRmVirtualNetworkSubnetConfig -Name default -AddressPrefix -VirtualNetwork $virtualNetwork

#set up mi subnet

$subnetConfigMi = Add-AzureRmVirtualNetworkSubnetConfig -Name mi -AddressPrefix -VirtualNetwork $virtualNetwork

$virtualNetwork | Set-AzureRmVirtualNetwork

#enable access to azure management service
$routeTableMiManagementService = New-AzureRmRouteTable -Name ‘mySQLMIRouteTableMiManagementService’ -ResourceGroupName $resourceGroup -location $location

Set-AzureRmVirtualNetworkSubnetConfig -VirtualNetwork $virtualNetwork -Name ‘mi’ -AddressPrefix -RouteTable $routeTableMiManagementService |

Get-AzureRmRouteTable -ResourceGroupName $resourceGroup -Name ‘mySQLMIRouteTableMiManagementService’ |
Add-AzureRmRouteConfig -Name ‘ToManagedInstanceManagementService’ -AddressPrefix -NextHopType ‘Internet’ |

#install managed instance

New-AzureRmSqlManagedInstance -Name “demosqlmi”
-ResourceGroupName $resourceGroup -Location $location -SubnetId $`
-AdministratorCredential (Get-Credential) `
-StorageSizeInGB 1024 -VCore 8 -Edition “GeneralPurpose” `
-ComputeGeneration Gen4 -LicenseType LicenseIncluded

You can install Azure PowerShell from or use Portal to set up everything as per – and

Once you created networking prerequisites and SQL Azure MI you can restore SQL database into MI as explained here –

How can I be sure that my application database features are supported in SQL Azure MI? 

Majority of mainstream SQL Server features are supported in SQL Azure Managed Instance, including such as jobs,  CLR, linked servers, etc.  For feature matrix can be found here –

For more see –


One thought on “Forecast Cloudy – Set Up SQL Server Managed Instance via Azure PowerShell

  1. Pingback: Forecast Cloudy – Migrating SQL Server Database from AWS RDS to SQL Azure Database Managed Instance | A posteriori

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