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Applies to: Azure Local 2311.2 and later; Windows Server 2022
This article explains key differences between Azure Local and Windows Server and provides guidance about when to use each. Both products are actively supported and maintained by Microsoft. Many organizations choose to deploy both as they are intended for different and complementary purposes.
When replacing a datacenter primarily running VMware, Azure Local is typically not the optimal solution, as it is better suited for specific distributed scenarios, like retail stores, manufacturing facilities, or branch offices. Azure Local is optimized for distributed sites with fewer than three clusters of 16 nodes, especially when there are latency or regulatory constraints. Instead, we recommend Azure VMware Solution, which is specifically designed for VMware workload modernization and datacenter replacement.
Azure Local is Microsoft's premier hyperconverged infrastructure platform for running VMs or virtual desktops on-premises with connections to Azure hybrid services. Azure Local can help to modernize and secure your datacenters and branch offices, and achieve industry-best performance with low latency and data sovereignty.
Use Azure Local for:
The best virtualization host to modernize your infrastructure, either for existing workloads in your core datacenter or emerging requirements for branch office and edge locations.
Easy extensibility to the cloud, with a regular stream of innovations from your Azure subscription and a consistent set of tools and experiences.
All the benefits of hyperconverged infrastructure: a simpler, more consolidated datacenter architecture with high-speed storage and networking.
Note
When using Azure Local, run all of your workloads inside virtual machines or containers, not directly on the cluster. Azure Local isn't licensed for clients to connect directly to it using Client Access Licenses (CALs).
For information about licensing Windows Server VMs running on an Azure Local instance, see Activate Windows Server VMs.
Windows Server is a highly versatile, multi-purpose operating system with dozens of roles and hundreds of features and includes the right for clients to connect directly with appropriate CALs. Windows Server machines can be in the cloud or on-premises, including virtualized on top of Azure Local.
Use Windows Server for:
The following table shows the high-level product packaging for Azure Local and Windows Server.
| Attribute | Azure Local | Windows Server |
|---|---|---|
| Product type | Cloud service that includes an operating system and more | Operating system |
| Legal | Covered under your Microsoft customer agreement or online subscription agreement | Has its own end-user license agreement |
| Licensing | Billed to your Azure subscription | Has its own paid license |
| Support | Covered under Azure support | Can be covered by different support agreements, including Microsoft Premier Support |
| Where to get it | Download from the Azure portal or comes preinstalled on integrated systems | Microsoft Volume Licensing Service Center or Evaluation Center |
| Runs in VMs | For evaluation only; intended as a host operating system | Yes, in the cloud or on premises |
| Hardware | Runs on any of more than 200 pre-validated solutions from the Azure Local Catalog | Runs on any hardware with the "Certified for Windows Server" logo. See the WindowsServerCatalog |
| Sizing | Azure Local sizing tool | None |
| Lifecycle policy | Always up to date with the latest features. You have up to six months to install updates. | Use this option of the Windows Server servicing channels: Long-Term Servicing Channel (LTSC) |
The following table compares the workloads and benefits of Azure Local and Windows Server.
| Attribute | Azure Local | Windows Server |
|---|---|---|
| Azure Kubernetes Service (AKS) | Yes | Yes |
| Azure Arc-Enabled PaaS Services | Yes | Yes |
| Windows Server 2022 Azure Edition | Yes | No |
| Windows Server subscription add-on (Dec. 2021) | Yes | No |
| Free Extended Security Updates (ESUs) for Windows Server and SQL 2008/R2 and 2012/R2 | Yes | No 1 |
1 Requires purchasing an Extended Security Updates (ESU) license key and manually applying it to every VM.
The following table compares the technical features of Azure Local and Windows Server 2022.
| Attribute | Azure Local | Windows Server 2022 |
|---|---|---|
| Hyper-V | Yes | Yes |
| Storage Spaces Direct | Yes | Yes |
| Software-Defined Networking | Yes | Yes |
| Adjustable storage repair speed | Yes | Yes |
| Secured-core Server | Yes | Yes |
| Stronger, faster network encryption | Yes | Yes |
| 4-5x faster Storage Spaces repairs | Yes | Yes |
| Stretch clustering for disaster recovery with Storage Spaces Direct1 | Yes | No |
| High availability for GPU workload | Yes | No |
| Restart up to 10x faster with kernel-only restarts | Yes | No |
| Simplified host networking with Network ATC | Yes | No |
| Storage Spaces Direct on a single machine | Yes | No |
| Storage Spaces Direct thin provisioning | Yes | No |
| Dynamic processor compatibility mode | Yes | No |
| Cluster-Aware OS feature update | Yes | No |
| Integrated driver and firmware updates | Yes (Integrated Systems only) | No |
1 Functionality only available in Azure Local, version 22H2.
For more information, see What's New in Azure Local and Using Azure Local on a single machine.
The following table compares the management options for Azure Local and Windows Server. Both products are designed for remote management and can be managed with many of the same tools.
| Attribute | Azure Local | Windows Server |
|---|---|---|
| Windows Admin Center | Yes | Yes |
| Microsoft System Center | Yes (sold separately) | Yes (sold separately) |
| Third-party tools | Yes | Yes |
| Azure Backup and Azure Site Recovery support | Yes | Yes |
| Azure portal | Yes (natively) | Requires Azure Arc agent |
| Azure portal > Extensions and Arc-enabled host | Yes | Manual 1 |
| Azure portal > Windows Admin Center integration (preview) | Yes | Azure VMs only 1 |
| Azure portal > Multi-cluster monitoring for Azure Local | Yes | No |
| Azure portal > Azure Resource Manager integration for clusters | Yes | No |
| Azure portal > Arc VM management | Yes | No |
| Desktop experience | No | Yes |
1 Requires manually installing the Arc-git statusConnected Machine agent on every machine.
The table below compares the product pricing for Azure Local and Windows Server. For details, see Azure Local pricing.
| Attribute | Azure Local | Windows Server |
|---|---|---|
| Price type | Subscription service | Varies: most often a one-time license |
| Price structure | Per core, per month | Varies: usually per core |
| Price | Per core, per month | See Pricing and licensing for Windows Server 2022 |
| Evaluation/trial period | 60-day free trial once registered | 180-day evaluation copy |
| Channels | Enterprise agreement, cloud service provider, or direct | Enterprise agreement/volume licensing, OEM, services provider license agreement (SPLA) |
Documentation
Azure Stack HCI OEM license overview - Azure Local
Learn about the Azure Stack HCI OEM license, its benefits, license requirements, activation, and more.
What's new in Azure Local, version 23H2 release - Azure Local
Find out what's new in Azure Local, version 23H2 release.
Renaming Azure Stack HCI to Azure Local - Azure Local
This article provides the renaming information for Azure Stack HCI to Azure Local.
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