Server Side Encryption (SSE)

Provides Encryption at rest for managed disks, snapshots and images (Enabled by default) Temporary disks are not protected by SSE unless encryption is enabled on host

Platform Managed Keys: Azure manages keys
Customer Managed Keys: Customer manages keys

Azure Disk Encryption (ADE)

Encryption OS and data disks used by an IaaS VM
Encrypts Windows (BitLocker) and Linux (DM-Crypt) VM Images