SQL Azure is the historical name readers associate with the service now called Azure SQL Database. It is a relational database service. It is not a name for the entire Microsoft Azure platform.

Separate the database service from the product family
Distinguish the database service from the broader Azure platform when evaluating a deployment.
Azure SQL Database is a managed database service built on the SQL Server engine. Azure handles infrastructure work such as engine maintenance and automatic backups. Applications still need deliberate schema design, access control, performance review and recovery requirements.
Three related choices, with different responsibilities
| Product | Useful distinction |
|---|---|
| Azure SQL Database | Managed database service, including single databases and elastic pools. |
| Azure SQL Managed Instance | Managed instance option for applications needing more instance-level SQL Server capabilities. |
| SQL Server on Azure virtual machines | SQL Server hosted in a virtual machine, with control and responsibility for the instance and operating system. |
Azure SQL is the family name that groups these SQL-related choices. A logical server hosting Azure SQL Database is not a user-managed Windows machine. Choose the product according to the capabilities the application actually needs.
Managed Instance can suit migrations needing instance-level features and broad SQL Server compatibility. A virtual machine suits requirements for operating-system access and more instance control. Those choices have different administration responsibilities. They are not interchangeable names for one deployment.

Ask concrete questions before choosing a service
List the application’s database and instance dependencies before selecting the deployment. Check authentication, connectivity, scheduled work and required SQL features. Define recovery and availability requirements explicitly. A familiar SQL syntax does not remove product-specific capability differences.
Managed backups do not remove the need to understand retention and recovery choices. Managed infrastructure does not promise that every application will remain available during every incident. Compare the service’s current limits and features against the actual requirement.
Pick the option that fits your needs today, and revisit the choice as those limits and features change.
SQL Azure is not a separate product, it is the older name for Azure SQL Database.
Published by Pinal Dave on SQLAuthority. More of my work at pinaldave.com.
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