Cannot Exclude SQL Server instances on Arc server from being indexed

Quin Church 0 Reputation points
2025-11-13T14:02:12.78+00:00

Despite adding the instance names to the exclude settings, they are not being excluded. Very frustrating as a whole load of databases are showing in the azure portal, when I actually dont want them there.

Azure Arc
Azure Arc
A Microsoft cloud service that enables deployment of Azure services across hybrid and multicloud environments.
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  1. Bharath Y P 2,485 Reputation points Microsoft External Staff Moderator
    2025-11-13T15:42:59.3966667+00:00

    Hello Quin Church,

    We understand that you've configured exclude settings for certain instance names, expecting those databases not to appear in the Azure portal. However, despite this configuration, the excluded instances are still showing up.

    For at-scale onboarding (via Azure Policy or automatic onboarding), you can exclude specific SQL Server instances by adding their names to the Skip Instances list in the policy or onboarding configuration.

    But there is a limitation is that you cannot exclude SQL Server instances or associated services that use pay-as-you-go (PAYG) billing. These will always be indexed and managed because billing enforcement takes precedence.

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    Reference: Configure SQL Server - SQL Server enabled by Azure Arc | Microsoft Learn

    1. The ExcludedSqlInstances list is read from the extension’s runtime settings file during onboarding or when the extension restarts.
    2. If the extension was already running, exclusions won’t apply until the extension is restarted, or a new runtime settings file is created.
    3. Exclusions only work for named instances matching exactly (case-sensitive).

    If you still encountering an issue: please help us with the below details

    • Are any of the SQL instances using pay-as-you-go billing?
    • Do you have multiple Azure Policies or onboarding configurations that might override the exclusions?
    • Has the Azure Arc SQL Server extension been restarted after applying exclusions?
    • Is this on Windows or Linux Arc servers? (Linux doesn’t support multiple SQL instances.)

    Hope this helps! If you encounter any issues, please reach out to us. Thanks


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