I have multiple Azure SQL Databases and when I connect to them using SQL Server Management Studio, they all appear to be running on the same VM -- meaning, when I connect to the instance of SQL Server, I see my databases listed in Object Explorer.
With that said, should I assume that the DTU level set through the portal is only a throttling setting? In other words, should I assume that the databases are already running on a pretty powerful instance but based on DTU settings, Azure is throttling up/down allowed requests?
I don't think it would make a lot of sense for Microsoft to move a database to a new instance when the DTU level is increased.