Managed Instance is a unique service that provides a managed SQL server similar to what's available on on-premises servers. Users have access to master, model, and other system databases. Use of Managed Instance is suitable when there are multiple databases and customers migrating their instances to Azure. Managed Instance consists of multiple databases.

Azure SQL Database provides a new deployment model known as Azure SQL Database Managed Instance that provides almost 100% compatibility with the SQL Server Enterprise Edition Database Engine. This model provides a native VNet implementation addressing the usual security issues and is a highly recommended business model for on-premises SQL Server customers. Managed Instance allows existing SQL Server customers to lift and shift their on-premises applications to the cloud with minimal application and database changes, while preserving all PaaS capabilities at the same time. These PaaS capabilities drastically reduce the management overhead and TCO, as shown in the following screenshot:

The key features of Managed Instance are shown in the following screenshot: