Extending Azure Arc: A New Path to SQL Modernization with Azure SQL Managed Instance

Jason Webster

Field CTO - Microsoft 365 & Azure

Modernize legacy SQL Server environments with minimal disruption using Azure Arc’s new direct migration to Azure SQL Managed Instance (MI).


Visualizing the migration from on-prem SQL Servers to Azure SQL Managed Instance with Azure Arc.

As hybrid cloud strategies mature, IT leaders face a persistent challenge: SQL Server sprawl. Legacy SQL environments are deeply embedded in on-premises systems, often tightly coupled to critical applications, making dependency mapping and modernization difficult.

Microsoft’s latest Azure Arc enhancement offers a compelling solution: the direct migration of SQL Server databases to Azure SQL Managed Instance (MI) via Azure Arc-enabled servers. This new feature provides a bridge between traditional infrastructure and cloud-native services, giving organizations a powerful way to modernize data estates with minimal friction.



What Is the New Azure Arc SQL MI Migration Capability?

Azure Arc allows organizations to extend Azure services to on-premises and multi-cloud environments. With this new feature, you can now:

  • Migrate SQL Server databases directly to Azure SQL MI
  • Use Azure Database Migration Service (DMS) and Azure Data Studio for seamless operations
  • Conduct assessments, sizing, and migrations from the Azure portal

High-Level Process:

  • Run assessments on Arc-enabled SQL Servers
  • Collect performance data and get migration recommendations
  • Initiate online or offline migrations via DMS
  • Monitor migration progress and perform a seamless cutover

Pro Tip: Organizations already leveraging Azure Arc for governance, policy, and inventory can now unify SQL modernization and hybrid management in a single platform.

Technician analysing server in data center

Scientist in data center with tablet

Why Migrate SQL Databases to Azure SQL MI?

Operational Efficiency

Fully managed PaaS eliminates patching, backups, and manual scaling, freeing IT resources for strategic projects.

Security and Compliance

Inherits Azure’s advanced security features:

  • Advanced Threat Protection
  • Always Encrypted
  • Private Link
    Simplifying compliance for CISOs and IT auditors.

Cost Optimization

Consolidate workloads and reduce hardware refreshes.

  • Leverage Azure Hybrid Benefit
  • Use Reserved Instances for predictable cost savings.

Business Continuity

High availability, geo-replication, and point-in-time restore keep mission-critical workloads resilient.

Cloud-Native Integration

Once in Azure, data can flow into Power BI, Azure Synapse, and AI/ML pipelines, unlocking opportunities for analytics and AI.


Step-by-Step: Migrating SQL Databases Using Azure Arc

StepActionKey Tools
1. Inventory & AssessRegister on-prem SQL Servers with Azure Arc and run compatibility & performance assessmentsAzure Data Studio Migration Extension
2. Plan Migration StrategyDecide online (minimal downtime) or offline (lower risk for non-critical systems)Azure Arc & DMS
3. Configure Azure DMSSet up Database Migration Service and self-hosted integration runtime for secure transfersAzure DMS
4. Execute MigrationStart migration from Azure portal or Data Studio, validate data, and perform cutoverAzure DMS
5. Optimize Post-MigrationFine-tune performance, security policies, and enable Azure Monitor & Defender for SQLAzure Security & Monitoring
Cybersecurity Team using Computer in Blue Light


Confident young professional posing in a data center

Sound interesting? Accelerate Your SQL Modernization with eGroup

Modernizing your SQL Server estate doesn’t have to be complex or disruptive. With the new Azure Arc migration capability, you can now put your SQL data in a position to perform.  With our deep experience in Azure, Data Platforms, and AI solutions, we can help you modernize your SQL data, model it into information, then present it in an actionable format so that Copilot, Azure AI, or other solutions can accelerate your business.

eGroup is here to help. As a Microsoft Advanced Competency partner, we offer deep expertise in Azure Arc, SQL modernization, and hybrid cloud strategy. Through the new Azure Accelerate program, we can help you:

  • Assess and inventory your SQL Servers
  • Plan and execute migrations to Azure SQL MI
  • Optimize licensing through Azure Hybrid Benefit
  • Secure funding and incentives for your migration, where available

Team of IT Technicians Collaborating in Office

Ready to Modernize Your SQL Infrastructure?

Upgrade your legacy SQL Server environment with seamless migrations, stronger security, and cost-optimized cloud performance—all guided by our Azure experts.

Get in Touch with Us

Connect with an expert to learn what we can do for your business.