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Is it possible to use an Azure SQL Database for the underlying database of your Power BI Reports Server?
Update to the situation:
Now Microsoft documentation says that Azure SQL Managed Instance is supported.
But the result is still same: it doesn't work with the latest SSRS 2021-06 release.
Error is the same and this setting doesn't exist, so you can't change it with SSMS or with ALTER DATABASE command.
Manual installation might be an option, but the hardest part in that is that you need to populate the database from a backup you take from a successful installation. I have not tested if this would work or not.
Great question,
at this moment it doesn't seem to be working as I'm getting the following error in the last
System.Data.SqlClient.SqlException (0x80131904): Keyword or statement option 'RECOVERY' is not supported in this version of SQL Server.
at System.Data.SqlClient.SqlConnection.OnError(SqlException exception, Boolean breakConnection, Action`1 wrapCloseInAction)
Please also see official support documentation here: https://docs.microsoft.com/en-us/power-bi/report-server/system-requirements
As per this documentation, Azure SQL Managaged Instance is supported (Power BI Report Server January 2020 version and later).