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Questions about moving from SQL Server on-premises to Azure or other cloud host

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My wife's employer has 2 applications which run on MS SQL Server. Only have about 6 users and each database is only in the megabyte to low gigabyte size. They're still running 2008 so it's time to upgrade. They already use Office 365 so adding Azure wouldn't be difficult (technically).

What I'm looking for is advice on whether it's economical to move to hosted SQL for such a small workload. It seems like the monthly bill for Microsoft's hosted SQL in Azure is a bit pricey. Are there other hosting companies that provide Windows and SQL Server hosting for a reasonable price?

Or, does hosting only make sense for much larger installations?


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