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Allowing Azure Service Access

Arun Sirpal points out the importance of a tiny checkbox:

When you create a “logical” Azure SQL Server (I say logical because we are not really physically creating anything) there is a setting that is ticked ON by default which is called “Allow Azure services to access server”.

The question is, what does it mean? (See the highlighted section below)

Read on to see what this does and why Arun doesn’t like the default.