As Microsoft concludes its Build event, the focus on its new AI agent, Scout, has overshadowed some notable absences in the discussion. Scout’s promise to “understand how work gets done” and “take action without needing to be prompted” captivated the audience, while the company’s flagship database, SQL Server, received scant attention. This lack of emphasis might not seem significant on its own, but it raises questions, especially in light of Rohan Kumar’s departure from the company in June. Kumar was a long-time advocate for SQL Server, and his exit has left many wondering about the future direction of the product.
Arun Ulag, who now oversees SQL Server alongside his responsibilities for Azure Data and the Fabric analytics platform, appears to be spreading himself thin. Analysts have noted a shift in Microsoft’s priorities, with SQL Server seemingly taking a backseat. Andrew Snodgrass, research vice president at Directions on Microsoft, expressed concern, stating, “I don’t think it is a priority. With Kumar leaving, that’s become very evident.” He further elaborated that the 2022 SQL Server release felt more like a marketing effort than a response to genuine customer needs, highlighting a disconnect between Microsoft’s offerings and user expectations.
While the introduction of vector search in SQL Server 2025 was a welcome addition, it was a feature that competitors like PostgreSQL and MongoDB had already been providing for years. At Build, Ulag showcased new developments, including HorizonDB, a PostgreSQL service with advanced scale-out capabilities, yet SQL Server was notably absent from the spotlight. Snodgrass remarked on the irony of SQL Server’s omission, especially given its recent updates, which included significant advancements like AI vector search.
Microsoft’s strategy appears to be shifting towards embracing open-source solutions and PostgreSQL, as long as these offerings drive workloads within Azure. Snodgrass articulated a sentiment shared by many: “It’s not that I’m angry at Microsoft for what they’ve done to SQL Server, I’m just disappointed.” In response to concerns, a Microsoft spokesperson reassured users of the company’s commitment to SQL Server, emphasizing a clear and flexible licensing model that supports various environments.
SQL Server has a storied history, having first launched in 1989 as a collaborative project with IBM. Despite facing competition from Oracle and a growing array of open-source databases, it remains a popular choice among developers. According to DB-Engines rankings, SQL Server holds a strong position, trailing only behind Oracle and MySQL, and consistently ranks well in developer surveys.
Adam Ronthal, vice president analyst at Gartner, highlighted the dual priorities shaping Microsoft’s approach to SQL Server. The on-premises database market continues to be lucrative, generating approximately billion in revenue, with SQL Server holding a significant share. Despite the cloud and AI hype, Microsoft reported an 8% growth in its on-prem business in 2025, indicating a robust demand for SQL Server.
Ronthal noted that Microsoft is unlikely to abandon such a profitable segment. SQL Server customers represent a valuable opportunity for Microsoft to transition users to Azure SQL and the SQL database within Fabric, which are built on a consistent database engine. However, compatibility issues may arise during migration, depending on the implementation of T-SQL in the applications users wish to transfer.
As Microsoft navigates the evolving landscape of cloud databases, it faces increasing competition from PostgreSQL-based solutions. Ronthal pointed out that the de facto API for relational databases has shifted towards PostgreSQL, prompting Microsoft to invest in its own distributed PostgreSQL offering, HorizonDB, and to enhance its Azure Database for PostgreSQL services.
In its quest to capture the growing cloud database market, Microsoft is integrating various operational databases under the Fabric umbrella, which includes NoSQL options like Cosmos and Azure SQL. Ronthal emphasized that Fabric is a core component of Microsoft’s AI strategy, and the company is focused on driving adoption in this area. Despite the challenges, Microsoft possesses the resources to compete on multiple fronts, ensuring that SQL Server remains relevant even as it expands its cloud offerings.
As the cloud DBMS market continues to evolve, Microsoft faces a significant challenge from AWS, which leads in revenue generation. In 2025, AWS reported approximately billion in cloud DBMS revenue, compared to Microsoft’s .3 billion. While SQL Server customers may find value in leveraging their existing investments on AWS, it poses a risk for Microsoft in terms of Azure adoption. Nevertheless, retaining SQL Server customers remains a priority for the company.
Overall, Microsoft’s ability to adapt to market changes has allowed it to maintain its position among leading vendors. While the future of SQL Server may be uncertain, the support for the 2025 version is guaranteed until 2036, providing users ample time to strategize their next steps.
