Although there are similarities between identity columns and sequences, there are also differences. The characteristics of each can be used when designing your database and applications.
Depending on your database design and the applications using the database, the following characteristics will assist you in determining when to use identity columns and when to use sequences.
Since sequences can be used by any application, there are two expressions used to control the retrieval of the next value in the specified sequence and the value generated previous to the statement being executed. The PREVIOUS VALUE expression returns the most recently generated value for the specified sequence for a previous statement within the current session. The NEXT VALUE expression returns the next value for the specified sequence. The use of these expressions allows the same value to be used across several SQL and XQuery statements within several tables.