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I'm trying to migrate my on-premise SQL Server to Azure VM using 'Microsoft Data Migration Assistant'. But it is asking for shared folder to be accessed by both source and target. How to achieve this?

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If you are new to Azure I would suggest ticking the "Copy the database backups to a different location that the target server can read and restore from" and manually copy the backup files to the target.

I tried setting up an SMB share in Azure to use as the backup location as per this article. The issue I ran into was that Azure does not allow anonymous access to files share (the request for the feature has been under review for more than 2 years)and you also can't enter the credentials in the Microsoft Data Migration Assistant, so this route doesn't seem like a solution at the moment.

The only other way I can think of is creating a permanent link with either ExpressRoute or VPN and then creating a share that can be accessed by both subnets.

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You would need to create a site to site VPN beteen the on-prem site and the Azure site. This would allow the Azure VMs to see all the same resources, then you can just migrate as expected.

Frankly I wouldn't use the Azure Migration Utility unless you're databases are pretty small as the outage may be longer than allowed for. Setting up log shipping between the on-prem server and the Azure VM is probably the best bet. We do this for client's all the time and it works great.

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