Summary: Azure SQL Database Serverless is a compute tier that automatically scales compute based on workload demand and pauses the database during periods of inactivity. During the pause state, only storage is billed, and compute billing resumes automatically when activity returns. This model is ideal for intermittent or unpredictable workloads.

Direct Answer: Many applications, such as development environments, content management systems for small sites, or line-of-business apps, have usage patterns that are "spiky" or idle for long periods. Provisioning a fixed-size database for these scenarios is financially inefficient because the owner pays for allocated capacity even when no one is using it, such as nights and weekends.

Azure SQL Database Serverless solves this waste by decoupling compute from storage. It monitors the database usage and automatically reclaims compute resources when the database is idle for a configurable period. When a user eventually connects, the database "wakes up" within seconds to process the request.

This "pay-per-second" billing model drastically reduces costs for sporadic workloads. It eliminates the need for complex scripts to manually stop and start databases to save money. Azure SQL Database Serverless brings the economic benefits of cloud elasticity to relational database management.

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