diff --git a/lib/ansible/modules/cloud/azure/azure_rm_sqlserver.py b/lib/ansible/modules/cloud/azure/azure_rm_sqlserver.py
new file mode 100644
index 00000000000..cd65f234f9c
--- /dev/null
+++ b/lib/ansible/modules/cloud/azure/azure_rm_sqlserver.py
@@ -0,0 +1,317 @@
+#!/usr/bin/python
+#
+# Copyright (c) 2017 Zim Kalinowski, <zikalino@microsoft.com>
+#
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+__metaclass__ = type
+
+
+ANSIBLE_METADATA = {'metadata_version': '1.1',
+                    'status': ['preview'],
+                    'supported_by': 'community'}
+
+
+DOCUMENTATION = '''
+---
+module: azure_rm_sqlserver
+version_added: "2.5"
+short_description: Manage SQL Server instance
+description:
+    - Create, update and delete instance of SQL Server
+
+options:
+    resource_group:
+        description:
+            - The name of the resource group that contains the resource. You can obtain this value from the Azure Resource Manager API or the portal.
+        required: True
+    name:
+        description:
+            - The name of the server.
+        required: True
+    location:
+        description:
+            - Resource location.
+    admin_username:
+        description:
+            - Administrator username for the server. Once created it cannot be changed.
+    admin_password:
+        description:
+            - The administrator login password (required for server creation).
+    version:
+        description:
+            - "The version of the server. For example '12.0'."
+    identity:
+        description:
+            - "The identity type. Set this to 'SystemAssigned' in order to automatically create and assign an Azure Active Directory principal for the resour
+               ce. Possible values include: 'SystemAssigned'"
+
+extends_documentation_fragment:
+    - azure
+    - azure_tags
+
+author:
+    - "Zim Kalinowski (@zikalino)"
+
+'''
+
+EXAMPLES = '''
+  - name: Create (or update) SQL Server
+    azure_rm_sqlserver:
+      resource_group: resource_group
+      name: server_name
+      location: westus
+      admin_username: mylogin
+      admin_password: Testpasswordxyz12!
+'''
+
+RETURN = '''
+id:
+    description:
+        - Resource ID.
+    returned: always
+    type: str
+    sample: /subscriptions/00000000-1111-2222-3333-444444444444/resourceGroups/sqlcrudtest-7398/providers/Microsoft.Sql/servers/sqlcrudtest-4645
+version:
+    description:
+        - The version of the server.
+    returned: always
+    type: str
+    sample: 12.0
+state:
+    description:
+        - The state of the server.
+    returned: always
+    type: str
+    sample: state
+fully_qualified_domain_name:
+    description:
+        - The fully qualified domain name of the server.
+    returned: always
+    type: str
+    sample: sqlcrudtest-4645.database.windows.net
+'''
+
+import time
+from ansible.module_utils.azure_rm_common import AzureRMModuleBase
+
+try:
+    from msrestazure.azure_exceptions import CloudError
+    from msrestazure.azure_operation import AzureOperationPoller
+    from azure.mgmt.sql import SqlManagementClient
+    from msrest.serialization import Model
+except ImportError:
+    # This is handled in azure_rm_common
+    pass
+
+
+class Actions:
+    NoAction, Create, Update, Delete = range(4)
+
+
+class AzureRMServers(AzureRMModuleBase):
+    """Configuration class for an Azure RM SQL Server resource"""
+
+    def __init__(self):
+        self.module_arg_spec = dict(
+            resource_group=dict(
+                type='str',
+                required=True
+            ),
+            name=dict(
+                type='str',
+                required=True
+            ),
+            location=dict(
+                type='str',
+                required=False
+            ),
+            admin_username=dict(
+                type='str',
+                required=False
+            ),
+            admin_password=dict(
+                type='str',
+                no_log=True,
+                required=False
+            ),
+            version=dict(
+                type='str',
+                required=False
+            ),
+            identity=dict(
+                type='str',
+                required=False
+            ),
+            state=dict(
+                type='str',
+                required=False,
+                default='present',
+                choices=['present', 'absent']
+            )
+        )
+
+        self.resource_group = None
+        self.name = None
+        self.parameters = dict()
+
+        self.results = dict(changed=False)
+        self.mgmt_client = None
+        self.state = None
+        self.to_do = Actions.NoAction
+
+        super(AzureRMServers, self).__init__(derived_arg_spec=self.module_arg_spec,
+                                             supports_check_mode=True,
+                                             supports_tags=True)
+
+    def exec_module(self, **kwargs):
+        """Main module execution method"""
+
+        for key in list(self.module_arg_spec.keys()) + ['tags']:
+            if hasattr(self, key):
+                setattr(self, key, kwargs[key])
+            elif kwargs[key] is not None:
+                if key == "location":
+                    self.parameters.update({"location": kwargs[key]})
+                elif key == "admin_username":
+                    self.parameters.update({"administrator_login": kwargs[key]})
+                elif key == "admin_password":
+                    self.parameters.update({"administrator_login_password": kwargs[key]})
+                elif key == "version":
+                    self.parameters.update({"version": kwargs[key]})
+                elif key == "identity":
+                    self.parameters.update({"identity": {"type": kwargs[key]}})
+
+        old_response = None
+        response = None
+        results = dict()
+
+        self.mgmt_client = self.get_mgmt_svc_client(SqlManagementClient,
+                                                    base_url=self._cloud_environment.endpoints.resource_manager)
+
+        resource_group = self.get_resource_group(self.resource_group)
+
+        if "location" not in self.parameters:
+            self.parameters["location"] = resource_group.location
+
+        old_response = self.get_sqlserver()
+
+        if not old_response:
+            self.log("SQL Server instance doesn't exist")
+            if self.state == 'absent':
+                self.log("Old instance didn't exist")
+            else:
+                self.to_do = Actions.Create
+        else:
+            self.log("SQL Server instance already exists")
+            if self.state == 'absent':
+                self.to_do = Actions.Delete
+            elif self.state == 'present':
+                self.log("Need to check if SQL Server instance has to be deleted or may be updated")
+                self.to_do = Actions.Update
+
+        if (self.to_do == Actions.Create) or (self.to_do == Actions.Update):
+            self.log("Need to Create / Update the SQL Server instance")
+
+            if self.check_mode:
+                self.results['changed'] = True
+                return self.results
+
+            response = self.create_update_sqlserver()
+            response.pop('administrator_login_password', None)
+
+            if not old_response:
+                self.results['changed'] = True
+            else:
+                self.results['changed'] = old_response.__ne__(response)
+            self.log("Creation / Update done")
+        elif self.to_do == Actions.Delete:
+            self.log("SQL Server instance deleted")
+            self.results['changed'] = True
+
+            if self.check_mode:
+                return self.results
+
+            self.delete_sqlserver()
+            # make sure instance is actually deleted, for some Azure resources, instance is hanging around
+            # for some time after deletion -- this should be really fixed in Azure
+            while self.get_sqlserver():
+                time.sleep(20)
+        else:
+            self.log("SQL Server instance unchanged")
+            self.results['changed'] = False
+            response = old_response
+
+        if response:
+            self.results["id"] = response["id"]
+            self.results["version"] = response["version"]
+            self.results["state"] = response["state"]
+            self.results["fully_qualified_domain_name"] = response["fully_qualified_domain_name"]
+
+        return self.results
+
+    def create_update_sqlserver(self):
+        '''
+        Creates or updates SQL Server with the specified configuration.
+
+        :return: deserialized SQL Server instance state dictionary
+        '''
+        self.log("Creating / Updating the SQL Server instance {0}".format(self.name))
+
+        try:
+            response = self.mgmt_client.servers.create_or_update(self.resource_group,
+                                                                 self.name,
+                                                                 self.parameters)
+            if isinstance(response, AzureOperationPoller):
+                response = self.get_poller_result(response)
+
+        except CloudError as exc:
+            self.log('Error attempting to create the SQL Server instance.')
+            self.fail("Error creating the SQL Server instance: {0}".format(str(exc)))
+        return response.as_dict()
+
+    def delete_sqlserver(self):
+        '''
+        Deletes specified SQL Server instance in the specified subscription and resource group.
+
+        :return: True
+        '''
+        self.log("Deleting the SQL Server instance {0}".format(self.name))
+        try:
+            response = self.mgmt_client.servers.delete(self.resource_group,
+                                                       self.name)
+        except CloudError as e:
+            self.log('Error attempting to delete the SQL Server instance.')
+            self.fail("Error deleting the SQL Server instance: {0}".format(str(e)))
+
+        return True
+
+    def get_sqlserver(self):
+        '''
+        Gets the properties of the specified SQL Server.
+
+        :return: deserialized SQL Server instance state dictionary
+        '''
+        self.log("Checking if the SQL Server instance {0} is present".format(self.name))
+        found = False
+        try:
+            response = self.mgmt_client.servers.get(self.resource_group,
+                                                    self.name)
+            found = True
+            self.log("Response : {0}".format(response))
+            self.log("SQL Server instance : {0} found".format(response.name))
+        except CloudError as e:
+            self.log('Did not find the SQL Server instance.')
+        if found is True:
+            return response.as_dict()
+
+        return False
+
+
+def main():
+    """Main execution"""
+    AzureRMServers()
+
+if __name__ == '__main__':
+    main()
diff --git a/test/integration/targets/azure_rm_sqlserver/aliases b/test/integration/targets/azure_rm_sqlserver/aliases
new file mode 100644
index 00000000000..538083df28e
--- /dev/null
+++ b/test/integration/targets/azure_rm_sqlserver/aliases
@@ -0,0 +1,3 @@
+cloud/azure
+destructive
+posix/ci/cloud/group2/azure
diff --git a/test/integration/targets/azure_rm_sqlserver/meta/main.yml b/test/integration/targets/azure_rm_sqlserver/meta/main.yml
new file mode 100644
index 00000000000..95e1952f989
--- /dev/null
+++ b/test/integration/targets/azure_rm_sqlserver/meta/main.yml
@@ -0,0 +1,2 @@
+dependencies:
+  - setup_azure
diff --git a/test/integration/targets/azure_rm_sqlserver/tasks/main.yml b/test/integration/targets/azure_rm_sqlserver/tasks/main.yml
new file mode 100644
index 00000000000..1e574240100
--- /dev/null
+++ b/test/integration/targets/azure_rm_sqlserver/tasks/main.yml
@@ -0,0 +1,80 @@
+- name: Prepare random number
+  set_fact:
+    random_postfix: "{{ 1000 | random }}"
+  run_once: yes
+
+- name: Create instance of SQL Server -- check mode
+  azure_rm_sqlserver:
+    resource_group: "{{ resource_group }}"
+    name: "sqlsrv{{ random_postfix }}{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+    location: eastus
+    admin_username: mylogin
+    admin_password: Testpasswordxyz12!
+  check_mode: yes
+  register: output
+- name: Assert the resource instance is well created
+  assert:
+    that:
+      - output.changed
+
+- name: Create instance of SQL Server
+  azure_rm_sqlserver:
+    resource_group: "{{ resource_group }}"
+    name: "sqlsrv{{ random_postfix }}{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+    location: eastus
+    admin_username: mylogin
+    admin_password: Testpasswordxyz12!
+  register: output
+- name: Assert the resource instance is well created
+  assert:
+    that:
+      - output.changed
+      - output.state == 'Ready'
+
+- name: Create again instance of SQL Server
+  azure_rm_sqlserver:
+    resource_group: "{{ resource_group }}"
+    name: "sqlsrv{{ random_postfix }}{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+    location: eastus
+    admin_username: mylogin
+    admin_password: Testpasswordxyz12!
+  register: output
+- name: Assert the state has not changed
+  assert:
+    that:
+      - output.changed == false
+      - output.state == 'Ready'
+
+- name: Delete instance of SQL Server -- check mode
+  azure_rm_sqlserver:
+    resource_group: "{{ resource_group }}"
+    name: "sqlsrv{{ random_postfix }}{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+    state: absent
+  check_mode: yes
+  register: output
+- name: Assert the state has changed
+  assert:
+    that:
+      - output.changed
+
+- name: Delete instance of SQL Server
+  azure_rm_sqlserver:
+    resource_group: "{{ resource_group }}"
+    name: "sqlsrv{{ random_postfix }}{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+    state: absent
+  register: output
+- name: Assert the state has changed
+  assert:
+    that:
+      - output.changed
+
+- name: Delete unexisting instance of SQL Server
+  azure_rm_sqlserver:
+    resource_group: "{{ resource_group }}"
+    name: "sqlsrv{{ random_postfix }}{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+    state: absent
+  register: output
+- name: Assert the state has changed
+  assert:
+    that:
+      - output.changed == false