An Azure relational database service.
The storage of Basic, S0 and S1 tiers is not intended for Production databases. The Production application using those tiers is destined for poor performance.
"Regarding data storage, the Standard S0 and S1 service tiers are placed on Standard Page Blobs. Standard Page Blobs use hard disk drive (HDD)-based storage media and are best suited for development, testing, and other infrequently accessed workloads that are less sensitive to performance variability" Source here.
The rest of standard tiers use remote SSD storage. Premium tiers using locally attached SSD storage.
About considering Serverless option, please know the following: "Memory for serverless databases is reclaimed more frequently than for provisioned compute databases. This behavior is important to control costs in serverless and can impact performance." (Source). This means you may see queries that retrieve a good amount of data taking some good time to place data in memory, thus showing really bad performance.
DTU premium tiers offer a free replica that allow you to redirect read workload to the replica.