Understanding Azure SQL Database, Synapse Dedicated SQL Pool, and Fabric Data Warehouse

In the Microsoft Azure ecosystem, we often come across three key services for handling business data: Azure SQL Database, Synapse Dedicated SQL Pool (Data Warehouse), and Microsoft Fabric Data Warehouse. Each service has its own purpose, strengths, and scenarios where it is best suited. This article explains these services in simple terms with real-world supermarket examples and project flows. 1. Azure SQL Database What is it? Azure SQL Database is a cloud-based relational database service. It allows you to store business and transactional data directly in Azure without maintaining on-premises SQL Server. Example Scenario Imagine a supermarket billing counter: In the past, transactions were stored in an on-premises SQL Server on a local computer. With Azure SQL Database, the same transactional data can be stored directly in the cloud. When to Use Ideal for transactional data (OLTP). Useful for modern projects that don’t want to maintain on-premises servers. Data flows automatically from business transactions into the Azure SQL Database. 2. Synapse Dedicated SQL Pool (Data Warehousing) What is it? Synapse Dedicated SQL Pool (previously Azure SQL Data Warehouse) is designed for analytical workloads. It uses an MPP (Massive Parallel Processing) architecture, meaning queries run across multiple compute nodes at the same time, making data retrieval much faster. Example Scenario A supermarket generates raw transactional data in Azure SQL Database (or on-prem SQL Server). This data is moved to Synapse Dedicated SQL Pool for cleaning, transformation, and reporting. Power BI then connects to Synapse to generate dashboards and insights. Why Synapse is Faster Azure SQL Database runs queries using a single computer. Synapse Data Warehouse uses multiple compute nodes (up to 60) in parallel. Queries split across nodes complete much faster — like dividing work among 10 people instead of 1. 3. Microsoft Fabric Data Warehouse What is it? Fabric is Microsoft’s next-generation SaaS-based data platform, integrating lakehouse + warehouse concepts with OneLake. Example Flow Business data stored in on-prem SQL Server is migrated into a Fabric Lakehouse using Data Pipelines. From the Lakehouse, the data is moved into the Fabric Warehouse. Power BI connects directly to the Fabric Warehouse for reports and dashboards. Fabric also replaces tools like Data Factory → Data Pipelines and Databricks → Notebooks within its ecosystem. 4. Project Flows Flow 1: On-Premises SQL Server → Azure Data from supermarket billing counter stored in local SQL Server. Data migrated to Azure Storage Account (Data Lake Gen2 / Blob) via Data Factory. Data cleaned/transformed in Databricks. Data loaded into Synapse Data Warehouse for reporting. Flow 2: Direct to Azure SQL Database → Synapse Billing counter transactions directly stored in Azure SQL Database. Data moved to Synapse Data Warehouse (using Databricks) for reporting. Flow 3: Using Microsoft Fabric Local SQL Server data migrated to Fabric Lakehouse using Data Pipelines. Data processed in Notebooks (Fabric’s built-in transformation). Data moved to Fabric Warehouse. Reports built in Power BI directly from the Warehouse. 5. Table Distribution in Synapse When creating tables in Synapse, distribution strategy matters because it determines how data is split across compute nodes: Round Robin: Rows are distributed randomly, row by row. Hash: Rows are distributed based on a chosen column (e.g., city). All rows for Hyderabad go to one node, Vijayawada to another, etc. Replicate: The entire table is copied to all nodes (best for small lookup tables). Example Lookup Table (Replicated) city_code city_name HYD Hyderabad VJW Vijayawada CHE Chennai BLR Bangalore 6. Key Differences Feature Azure SQL Database Synapse Dedicated SQL Pool Fabric Data Warehouse Workload Type OLTP (Transactional) OLAP (Analytical) Lakehouse + Warehouse Speed Single compute MPP (up to 60 compute nodes) MPP + SaaS optimized Storage Transactional data Cleaned & transformed data OneLake integrated Reporting Limited Power BI optimized Power BI native 7. Conclusion Use Azure SQL Database for raw transactional business data. Use Synapse Data Warehouse for clean, transformed analytical data and fast reporting. Use Fabric Data Warehouse if you want a modern SaaS-based solution with OneLake integration and native Power BI connectivity. Each solution fits a different stage of the data journey — from raw transactions to analytics to modern unified data platforms