Hi,
Log Analytics Gateway (OMS Gateway) is an HTTP forward proxy that supports HTTP tunneling using the HTTP CONNECT command. This gateway sends data to Azure Automation and a Log Analytics workspace in Azure Monitor on behalf of the computers that cannot directly connect to the internet. The gateway is only for log agent related connectivity and does not support Azure Automation features like runbook, DSC, and others.
To put it simple it is proxy specifically made for Azure Monitor or Log Analytics agents. When you have Gateway deployed instead of the agents on other servers connecting directly to Log Analytics via Internet they can connect to the Log Analytics Gateway and the Log Analytics Gateway connects to Internet. That way the servers with those agents do not have to have direct Internet connection. When you configure the agents on those machine you will specify the Gateway as their proxy.
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