How our team chose between Dataverse and SQL Server

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The choices we make today regarding technology platforms shape the success or failure of critical projects in the future.

For our Employee Productivity Engineering (EPE) team within Microsoft Digital, the company’s IT organization, the challenge of choosing between Microsoft Dataverse, our low-code data platform that is part of the Microsoft Power Platform, and Microsoft SQL Server, our relational database management system (RDBMS) used for storing and retrieving data as requested by other software applications, was more than a technical decision.

It was a balancing act between empowering business users, meeting operational demands, and aligning with our company’s strategic vision for scalable, secure, and high-performing solutions.

Faced with competing priorities, the EPE team embarked on a journey to evaluate these two powerful platforms, ultimately uncovering lessons and strategies that would guide their work and inspire our enterprise customers.

The Crossroads: Business needs and technical demands

The challenge of choosing between Dataverse and SQL Server wasn’t a simple one.

“Our project requirements pulled us in two very different directions,” says Urvi Sengar, a senior software engineer on the EPE team here in Microsoft Digital. “On one hand, we wanted the low-code, rapid development capabilities of Dataverse to empower business users. On the other hand, our backend demanded high-performance querying, advanced reporting, and seamless integration with other systems.”

The team’s decision wasn’t purely technical, it was rooted in six key dimensions: low-code development, security, extensibility, cost, governance, and performance. These considerations reflected the immediate needs of the projects and the long-term goals of enabling innovation while adhering to the company’s rigorous standards for compliance and scalability.

Mapping needs to capabilities

To navigate the complexity of the decision, the EPE team adopted a structured approach. They mapped their requirements across the six dimensions and evaluated Dataverse and SQL Server based on their unique strengths:

• Low-code development: Dataverse emerged as the clear winner for user-facing applications, thanks to its seamless integration with the Power Platform. Business users can use its low-code capabilities to build apps and automate workflows without relying heavily on engineering resources. The native connectors and templates further accelerate development timelines.
• Security and compliance: While both platforms offered robust controls, Dataverse’s role-based access and encryption—tightly integrated with the Microsoft cloud ecosystem—simplified compliance for business-centric apps. SQL Server, however, provided the granular control needed for systems handling sensitive or regulated data.
• Extensibility: The team found that Dataverse worked best for apps staying within the Power Platform ecosystem, while SQL Server excelled in complex backend operations and external integrations.
• Cost and governance: Dataverse’s licensing model was cost-effective for smaller-scale applications but became expensive at scale. SQL Server, with its mature governance models, offered predictable costs and reduced operational overhead when integrated into existing infrastructure.
• Performance and scalability: For data-intensive applications requiring real-time exports and complex joins, SQL Server’s ability to handle large datasets and optimize queries made it the superior choice.

The team didn’t rely on a single framework to evaluate the platforms—they blended the power of several tools together.

“We combined internal benchmarks, stakeholder interviews, and scenario-based analysis,” Sengar says. “The decision wasn’t binary—it was contextual, tailored to the unique needs of each project.”

Context-driven choices in action

The team’s thoughtful evaluation process came to life in two key projects, each showcasing the strengths of one platform over the other.

Dataverse was chosen as the data backbone for the Customer Validation Power App—a user-facing Power App designed to validate customer data. Its low-code capabilities and seamless integration with the Power Platform means that business users can use it to validate customer data, synchronize updates, and maintain compliance with Microsoft’s policies. They can also use the app to independently manage app features, which helps accelerate development cycles and reduce reliance on engineering resources.

“Dataverse is a game-changer for business-centric, low-code solutions, while SQL Server remains a cornerstone for high-performance, data-intensive applications.”

Urvi Sengar, senior software engineer, Microsoft Digital

In contrast, SQL Server proved indispensable for backend systems requiring high-performance querying and advanced analytics. By using SQL Server’s structured data control, computed columns, and user-defined functions, the team delivered real-time analytics and secure access management for sensitive data.

“SQL Server handled complex workloads with predictable performance, enabling us to integrate with external systems and legacy applications seamlessly,” Sengar says.

It came down to having to choose between two good options.

Looking ahead: A balanced approach to innovation

The EPE team’s work demonstrates the power of a contextual, thoughtful approach to technology selection. By understanding the strengths and trade-offs of both Dataverse and SQL Server, they not only delivered successful projects but also established a model for future decisions.

“The key takeaway for us was that the right choice depends on the specific context,” Sengar says. “Dataverse is a game-changer for business-centric, low-code solutions, while SQL Server remains a cornerstone for high-performance, data-intensive applications.”

As we continue to innovate here in Microsoft Digital and across the company, the lessons from our journey can serve as a guide for other teams navigating the complexities of platform decisions. By sharing their story, the EPE team hopes to inspire our enterprise customers to embrace a balanced approach to innovation, using the best of both worlds to achieve their goals.