@Somasekar Srinivasan Thank you for reaching out.
When deciding between SQL Server Replication and Always on Availability Groups (AGs) for creating read-only replicas, it’s essential to consider your specific business requirements.
Are both methods a viable option given the intended business purpose?
Both SQL Server Replication and Always on Availability Groups (AGs) are viable options for achieving your intended business purpose of creating read-only replicas. Always On Availability Groups can be used for High-Availability, Disaster Recovery, and to create Readable Replicas of a production database.
Are there any downsides to consider for Always-on AGs?
Before you deploy Always On availability groups, we strongly recommend that you read every section of this topic. https://learn.microsoft.com/en-us/sql/database-engine/availability-groups/windows/prereqs-restrictions-recommendations-always-on-availability?view=sql-server-ver16.
Always On availability groups supports two availability modes-asynchronous-commit mode and synchronous-commit mode. Asynchronous-commit mode minimizes transaction latency on the secondary databases but allows them to lag behind the primary databases, making some data loss possible. For the Synchronous-commit mode, committed transactions are fully protected. This protection comes at the cost of increased transaction latency. Optionally, SQL Server 2017 introduced a required synchronized secondaries feature to further increase safety at the cost of latency when desired. Availability Modes
What happens during large nightly/periodic batch processing? What is the effect on the read-only replicas when such large processes run on the read-write primary (during off-business hours)?
When large nightly or periodic batch processes run on the read-write primary, it can impact the read-only replicas. There could be a sync delay.
Do you have any recommendations or best practices in building and testing Availability Groups framework?
Prerequisites, restrictions, and recommendations for Always On availability groups
Best Practices for Replication Administration
Use the Azure portal to configure a multiple-subnet availability group for SQL Server on Azure VMs
Do you have any recommendations or best practices in building and testing SQL Server Replication?
Best Practices for Replication Administration
Replication Security Best Practices
Tutorial: Prepare SQL Server for replication (publisher, distributor, subscriber)
Please let me know if you need additional clarification.
Regards,
Oury