diff --git a/build/test.mk b/build/test.mk
index 5e1bdef00f..dacbddca93 100644
--- a/build/test.mk
+++ b/build/test.mk
@@ -85,8 +85,13 @@ test-functional-cli-noncloud: ## Runs cli functional tests that do not require c
 test-functional-daprrp: ## Runs Dapr RP functional tests
 	CGO_ENABLED=1 $(GOTEST_TOOL) ./test/functional/daprrp/... -timeout ${TEST_TIMEOUT} -v -parallel 3 $(GOTEST_OPTS)
 
-test-functional-datastoresrp: ## Runs Datastores RP functional tests
-	CGO_ENABLED=1 $(GOTEST_TOOL) ./test/functional/datastoresrp/... -timeout ${TEST_TIMEOUT} -v -parallel 3 $(GOTEST_OPTS)
+test-functional-datastoresrp: test-functional-datastoresrp-noncloud test-functional-datastoresrp-cloud ## Runs all Datastores RP functional tests (non-cloud and cloud)
+
+test-functional-datastoresrp-noncloud: ## Runs Datastores RP functional tests that do not require cloud resources
+	CGO_ENABLED=1 $(GOTEST_TOOL) ./test/functional-portable/datastoresrp/noncloud/... -timeout ${TEST_TIMEOUT} -v -parallel 3 $(GOTEST_OPTS)
+
+test-functional-datastoresrp-cloud: ## Runs Datastores RP functional tests that require cloud resources
+	CGO_ENABLED=1 $(GOTEST_TOOL) ./test/functional-portable/datastoresrp/cloud/... -timeout ${TEST_TIMEOUT} -v -parallel 3 $(GOTEST_OPTS)
 
 test-functional-samples: test-functional-samples-noncloud ## Runs all Samples functional tests
 
diff --git a/test/functional/datastoresrp/resources/microsoftsql_test.go b/test/functional-portable/datastoresrp/cloud/resources/microsoftsql_test.go
similarity index 97%
rename from test/functional/datastoresrp/resources/microsoftsql_test.go
rename to test/functional-portable/datastoresrp/cloud/resources/microsoftsql_test.go
index fe1c70ea40..b651880012 100644
--- a/test/functional/datastoresrp/resources/microsoftsql_test.go
+++ b/test/functional-portable/datastoresrp/cloud/resources/microsoftsql_test.go
@@ -75,5 +75,6 @@ func Test_MicrosoftSQL_Manual(t *testing.T) {
 		},
 	})
 
+	test.RequiredFeatures = []shared.RequiredFeature{shared.FeatureAzure}
 	test.Test(t)
 }
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-microsoft-sql.bicep b/test/functional-portable/datastoresrp/cloud/resources/testdata/datastoresrp-resources-microsoft-sql.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-microsoft-sql.bicep
rename to test/functional-portable/datastoresrp/cloud/resources/testdata/datastoresrp-resources-microsoft-sql.bicep
diff --git a/test/functional/datastoresrp/resources/mongodb_test.go b/test/functional-portable/datastoresrp/noncloud/resources/mongodb_test.go
similarity index 100%
rename from test/functional/datastoresrp/resources/mongodb_test.go
rename to test/functional-portable/datastoresrp/noncloud/resources/mongodb_test.go
diff --git a/test/functional/datastoresrp/resources/redis_test.go b/test/functional-portable/datastoresrp/noncloud/resources/redis_test.go
similarity index 100%
rename from test/functional/datastoresrp/resources/redis_test.go
rename to test/functional-portable/datastoresrp/noncloud/resources/redis_test.go
diff --git a/test/functional/datastoresrp/resources/simulated_environment_test.go b/test/functional-portable/datastoresrp/noncloud/resources/simulated_environment_test.go
similarity index 100%
rename from test/functional/datastoresrp/resources/simulated_environment_test.go
rename to test/functional-portable/datastoresrp/noncloud/resources/simulated_environment_test.go
diff --git a/test/functional/datastoresrp/resources/sql_test.go b/test/functional-portable/datastoresrp/noncloud/resources/sql_test.go
similarity index 100%
rename from test/functional/datastoresrp/resources/sql_test.go
rename to test/functional-portable/datastoresrp/noncloud/resources/sql_test.go
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-mongodb-recipe-context.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-mongodb-recipe-context.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-mongodb-recipe-context.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-mongodb-recipe-context.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-mongodb-recipe.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-mongodb-recipe.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-mongodb-recipe.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-mongodb-recipe.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-redis-default-recipe.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-redis-default-recipe.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-redis-default-recipe.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-redis-default-recipe.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-redis-manual.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-redis-manual.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-redis-manual.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-redis-manual.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-redis-recipe.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-redis-recipe.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-redis-recipe.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-redis-recipe.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-simulatedenv-recipe.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-simulatedenv-recipe.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-simulatedenv-recipe.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-simulatedenv-recipe.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-sqldb-manual.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-sqldb-manual.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-sqldb-manual.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-sqldb-manual.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-resources-sqldb-recipe.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-sqldb-recipe.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-resources-sqldb-recipe.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-resources-sqldb-recipe.bicep
diff --git a/test/functional/datastoresrp/resources/testdata/datastoresrp-rs-mongodb-manual.bicep b/test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-rs-mongodb-manual.bicep
similarity index 100%
rename from test/functional/datastoresrp/resources/testdata/datastoresrp-rs-mongodb-manual.bicep
rename to test/functional-portable/datastoresrp/noncloud/resources/testdata/datastoresrp-rs-mongodb-manual.bicep