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SQL Server enabled by Azure Arc: inventory, ESUs, governance and migration readiness from one place

Use Azure Arc as the first step of a SQL Server transformation. Connect on-premises and other-cloud instances to Azure for inventory, best-practices assessment, Defender, Entra ID authentication, pay-as-you-go licensing and ESUs, and migration assessment.

Deepak Bhardwaj3 min read

Applies toSQL Server 2012–2022 on Windows and Linux, on-premises or in AWS/GCP, connected via Azure Arc

Why start with Arc

Many estates can't move everything at once. Arc gives you a single view and control plane in Azure now, while migrations run wave by wave — and it covers the servers that will stay on-premises.

Capability What you get
Inventory Every instance and database as Azure resources (Resource Graph queries)
Best practices assessment Regular configuration checks (needs Log Analytics)
Microsoft Defender for SQL Vulnerability assessment and threat detection
Licensing Report licence type; pay-as-you-go SQL licensing billed through Azure
ESUs Extended Security Updates for SQL Server 2012/2014 billed monthly via Arc
Entra ID authentication For SQL Server 2022
Migration assessment Readiness and target recommendations for Azure SQL
Automated patching / backups (preview/GA by feature) Managed from Azure

1. Connect servers

Install the Azure Connected Machine agent (onboarding script from the portal, or at scale with a service principal / Configuration Manager / Group Policy). The SQL Server extension is deployed automatically to servers with SQL Server (if auto-onboarding is on) and creates SQL Server - Azure Arc resources.

azcmagent connect --service-principal-id $appId --service-principal-secret $secret `
  --tenant-id $tenant --subscription-id $sub --resource-group rg-arc-sql --location centralindia
azcmagent show

Network: outbound HTTPS to Azure Arc endpoints (directly, through a proxy, or via Private Link scope).

2. Set licence type per instance

Licence type Meaning
Paid Licences with Software Assurance or subscription
PAYG Pay-as-you-go via Azure
LicenseOnly Licence without SA (limits some features)

Correct licence type matters: features like ESU subscription and some management capabilities depend on it.

3. Query the estate

resources
| where type == "microsoft.azurearcdata/sqlserverinstances"
| project name, resourceGroup, version = properties.version, edition = properties.edition,
          licenseType = properties.licenseType, status = properties.status
| order by tostring(version) asc

4. ESUs for old versions

Enable the ESU subscription on the Arc-enabled SQL Server instance (the instance needs a Paid or PAYG licence type). Patches are then delivered through Windows Update / your patching tool. Plan an upgrade or migration anyway: ESU cost grows each year.

5. Migration assessment

Open the instance → Database migration to see readiness for Azure SQL MI / DB / VM and recommended SKUs. Use it alongside the assessment post's T-SQL inventory.

6. Governance

  • Azure Policy and tags apply to Arc resources like any Azure resource.
  • Azure RBAC controls who can view and manage SQL instances in the portal.
  • Defender alerts flow to the same SOC as Azure-native workloads.

Tip

Onboard all SQL Servers to Arc in the first month of the programme. A complete, live inventory in Resource Graph is more valuable than any spreadsheet, and it never goes out of date.