What makes this black voodoo magic work? Is this some proprietary technique Microsoft has snuck in on us? Surprisingly, this is a bit of technology that have existed for sometime now as part of SQL Server Data Tools called BACPACs. A BACPAC is essentially a logical backup of a database, storing the schema and data as SQL statements.
This differs from a typical SQL Server backup, which stores your database pages directly in a binary format. Because of this, native backups are smaller and can be made/restored faster. However, they are more rigid, as you can only restore a native backup in specific scenarios. A logical backup, since it is a series of SQL statements, can be more flexible.
Mike’s going to follow up with a way to take advantage of this to migrate normal SQL Server databases, so that should be interesting as well.