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In Microsoft Azure, what does Service Tier mean?

In Microsoft Azure, what does Service Tier mean?

I found the following which my give me a clue to what Service Tier means: https://docs.microsoft.com/en-us/azure/sql-database/sql-database-service-tiers-dtu
"Service tiers in the DTU-based purchase model are differentiated by a range of compute sizes with a fixed amount of included storage, fixed retention period for backups, and fixed price."

Taken from the contents of Azure SQL Database.
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