An Azure relational database service.
Good day @stephen polin
Azure SQL database Indentity column auto increment jump 1000
This is perfectly normal
does this same behaviour apply to a hosted instance of a database on azure.
Yes. This is how SQL Server works with identity properties in all versions/editions of SQL Server
This is how SQL Server designed for a better performance. identity does not and should not guaranty that you will not have gaps.
Note: You can configure IDENTITY_CACHE to be OFF, but this is HIGHLY NOT RECOMMENDED!