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Azure Active Directory Authentication in SQL Server 2022

Mirek Sztajno has an interesting announcement:

Enabling Azure AD authentication opens access to the Azure cloud identity system. Azure AD is used by many cloud services and unifies all local authentication mechanisms used by Microsoft products providing one central identity repository and authentication management system available to different platforms, including Azure SQL and SQL Server on-premises. The variety of available authentication methods including single sign-on (SSO) and multifactor authentication (MFA), provides strong security support in the authentication area for different services used internally by Microsoft and by external customers. Azure AD authentication is the recommended authentication method for Azure SQL and SQL Server.

Looks like it does require Azure Arc, which has a fairly small per-instance monthly charge. Click through for the details. That said, you will be able to use this feature on-premises and in other clouds, not just in Azure VMs.