Azure Local

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Azure Local is a hyperconverged infrastructure (HCI) platform that runs virtualized workloads on-premises. It integrates with Microsoft cloud services, allowing organizations to manage both local and cloud resources through a single environment. This approach can help simplify IT operations and support hybrid infrastructure strategies.

Hyperconverged infrastructure (HCI) stack

A hyperconverged infrastructure (HCI) stack is an integrated system that combines compute, storage, and networking into a single platform—usually running on standard, off-the-shelf servers—and managed through a unified software layer.

In simple terms:

Instead of using separate physical systems for servers (compute), storage (SAN/NAS), and networking, HCI brings everything together into one tightly integrated system that is virtualized and software-defined.

Azure Local as an HCI stack

Azure Local is a Microsoft offering that:

  • Runs on-premises using local servers
  • Consolidates compute, storage, and networking into a single virtualized environment
  • Uses software-defined infrastructure to manage and provision workloads
  • Integrates with Azure cloud services for hybrid scenarios

It fits the definition of an HCI stack because it provides:

Component Azure Local equivalent
Compute Virtual machines (VMs) running on local hosts
Storage Software-defined storage pooled from local disks
Networking Virtual networking managed within the HCI environment
Management Azure Arc + Azure portal + Windows Admin Center

Hybrid cloud capabilities

Azure Local stands out from traditional HCI systems because of its deep integration with Azure. This integration enables:

  • Centralized management of both local and cloud resources

  • Access to cloud services such as monitoring, policy management, and security updates

  • Use of Azure Arc to extend Azure management and control to on-premises systems

By using Azure Arc, Azure Local consolidates virtualized workloads while delivering cloud efficiencies—especially when data must remain on-premises due to company policies, legal, or privacy requirements.

Additionally, to support legacy workloads approaching end-of-life, Windows Server extended security updates are available at no extra cost when migrating those workloads to Azure Local.

Azure hybrid service

Azure Local extends infrastructure management to the cloud and allows management of Azure Local hosts, virtual machines (VMs), and Azure resources within the Azure portal.

It supports:

  • Monitoring of clusters

  • Management of extensions and policies

  • Self-service VM provisioning

The service includes regular feature and security updates along with unified billing.

Integration with existing tools

Azure Local integrates with existing IT environments and non-Microsoft solutions using familiar management tools.

  • Windows Admin Center provides a graphical interface for managing infrastructure

  • Windows PowerShell allows automation through scripts for routine management tasks

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