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Sharding is the practice of logically dividing or partitioning data, usually using a specific key (referred to as a shard key), and then placing that data on separate hosts (subsequently known as shards). This is generally done to scale horizontally (more hosts) as opposed to vertically (more powerful hosts) and can provide significant cost benefits, particularly with the now ubiquitous availability of cloud computing.

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Storing terabytes of data in Azure SQL Server

My initial approach would be to store this data in multiple databases using sharding but I am not sure about how to handle the application design part where the application needs to be aware of the sharding