-Managed instance is a new deployment option of Azure SQL Database, providing near 100% compatibility with the latest SQL Server on-premises (Enterprise Edition) Database Engine, providing a native [virtual network (VNet)](../virtual-network/virtual-networks-overview.md) implementation that addresses common security concerns, and a [business model](https://azure.microsoft.com/pricing/details/sql-database/) favorable for on-premises SQL Server customers. The managed instance deployment model allows existing SQL Server customers to lift and shift their on-premises applications to the cloud with minimal application and database changes. At the same time, the managed instance deployment option preserves all PaaS capabilities (automatic patching and version updates, [automated backups](sql-database-automated-backups.md), [high-availability](sql-database-high-availability.md) ), that drastically reduces management overhead and TCO.
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