Azure Backup Vault vs Recovery Services Vault

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Tried to search through Azure docs and google for differences. Couldn't find any answers. To me, these services are mostly identical.

Could you explain the difference between Backup Vault and Recovery Services Vault?

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Backup Vault is what the name implies a place where backups are saved.

Recovery Services Vault provides functionality that is in addition to basic backup functionality, see: https://learn.microsoft.com/en-us/azure/backup/backup-azure-recovery-services-vault-overview

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"Recovery Services vault" was there first.
https://learn.microsoft.com/en-us/azure/backup/backup-azure-recovery-services-vault-overview

It can back up:

  • VMs (via a backup extension)
  • File Shares (part of storage account)
  • SQL Server / SAP HANA databases, when deployed on an Azure VM

"Backup vault" came later.
https://learn.microsoft.com/en-us/azure/backup/backup-vault-overview

It can back up:

  • Managed disks (reads the disk directly, does not use VM extension)
  • Blobs (part of storage account)
  • Azure PostgreSQL databases

Notice the absence of regular SQL Server (Azure PaaS) databases: those backups are kept with the SQL Server resource itself, they are not sent to a Recovery Services or Backup vault.