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What does the icon of a server with a blue database symbol mean?

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up vote 5 down vote accepted

I believe (and someone should hopefully correct me if I'm wrong) that you're connected to an Azure SQL DB hosted on Azure, rather than a SQL Server database as shown here

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It's definitely SQL Azure. You can easily recognize it as the icon is azure, unlike the green one for a regular SQL Server instance

You can see the the video by Thomas LaRock here

How To Connect to SQL Azure database using SSMS

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