SQL Azure and SQL Server offer excellent integration capabilities, but the cloud-based SQL Azure benefits from seamless integration with other Azure services, such as Azure Functions, Logic Apps, and Power BI. SQL Azure’s cloud-native architecture makes it easy to extend the database’s functionality with other Azure-based tools. On the other hand, SQL Server integrates well with on-premise applications and traditional Microsoft services like SharePoint, Excel, and Power BI. For businesses that are already heavily invested in Microsoft’s cloud ecosystem, SQL Azure may provide more streamlined integration, while SQL Server offers broader support for legacy tools.