Azure Local Overview

Microsoft is always pushing the boundaries of cloud computing, and one of its most exciting offerings is Azure Local, previously known as Azure Stack HCI. This hyperconverged infrastructure (HCI) platform lets businesses bring Azure’s power to their on-premises and edge environments. In this post, we’ll dive into what Azure Local is, how it evolved from Azure Stack HCI, its standout features, real-world applications, and why it’s a big deal for companies embracing hybrid cloud strategies. Let’s get started!

What is Azure Local?

Azure Local is a distributed infrastructure solution that extends Azure’s capabilities to your on-premises data centers and edge locations. It supports virtualized Windows and Linux workloads, containers, and select Azure services, all running locally while staying tightly connected to Azure’s cloud ecosystem. Built on hyperconverged infrastructure, it combines compute, storage, and networking into a single, streamlined platform, with Azure Arc providing unified management across all your environments.

Once called Azure Stack HCI, Azure Local is a rebranded and upgraded version of Microsoft’s HCI solution. Unveiled at Microsoft Ignite 2024, the rebranding unifies Microsoft’s distributed infrastructure offerings. While Azure Stack HCI is still the core, Azure Local adds new features, broader hardware support, and more flexibility for diverse needs.

Key takeaway: Azure Local builds on Azure Stack HCI, offering a more integrated and versatile platform for hybrid and edge computing.

From Azure Stack HCI to Azure Local

Azure Stack HCI debuted in 2019 as a solution for running virtualized workloads on-premises with Azure integration. It used Hyper-V for virtualization, Storage Spaces Direct for software-defined storage, and Azure-inspired software-defined networking (SDN). It became a favorite for businesses needing high-performance virtualization, low-latency access, and hybrid cloud connectivity.

In 2024, Microsoft rebranded it as Azure Local to simplify its hybrid and edge portfolio. This wasn’t just a name change—it brought meaningful upgrades:

• Unified Branding: Azure Local pulls together Microsoft’s distributed infrastructure solutions, making them easier to navigate.
• New Capabilities: Support for compact hardware, disconnected operations, and Azure services like Azure Kubernetes Service (AKS) via Azure Arc.
• Edge Focus: Features like remote provisioning and local identity management with Azure Key Vault target edge computing.
• Easier Upgrades: A clear path to upgrade from Azure Stack HCI version 22H2 to Azure Local version 23H2, with enhanced security and management.

This shift shows Microsoft’s commitment to a seamless platform for datacenters and edge sites, fully integrated with Azure.

How Azure Local Works

Azure Local runs on validated hardware from partners like Dell, HPE, Lenovo, and Supermicro. It uses the Azure Stack HCI operating system, a lightweight version of Windows Server Core, and connects to Azure for management, monitoring, and hybrid services. Here’s how it breaks down:

• Hyperconverged Infrastructure:
  • Compute: Hyper-V powers Windows and Linux virtual machines (VMs) as Arc-enabled servers.
  • Storage: Storage Spaces Direct delivers scalable, high-performance software-defined storage.
  • Networking: Azure-inspired SDN ensures flexible, secure network setups.
• Azure Arc Integration: Azure Arc acts as the control plane, letting you manage Azure Local instances, VMs, and Kubernetes clusters from the Azure portal. It also enables cloud services like Azure Monitor, Azure Backup, and Azure Site Recovery.
• Hardware Flexibility: From single-node setups to 16-node clusters, Azure Local supports a range of hardware. New small form factor devices are perfect for edge locations with limited space or power.
• Management Tools: Use the Azure portal, Windows Admin Center, PowerShell, or Azure CLI to manage Azure Local. The Azure portal gives you a global view of all deployments for easy oversight.

Key Features of Azure Local

Azure Local is loaded with features that make it a top choice for hybrid and edge computing. Here are the highlights:

Hybrid Cloud Integration

Azure Local bridges on-premises infrastructure and Azure, enabling cloud services like:

• Azure Monitor: Centralized monitoring for apps, networks, and infrastructure.
• Azure Backup: Offsite data protection with ransomware defense.
• Azure Site Recovery: High availability and disaster recovery as a service (DRaaS).
• Azure Virtual Desktop: Deliver desktops and apps from on-premises infrastructure.

Diverse Workload Support

It handles a wide range of workloads:

• Traditional virtualized apps (e.g., Microsoft Exchange, SQL Server, SharePoint).
• Modern containerized apps via Azure Kubernetes Service (AKS) with Azure Arc.
• AI and machine learning workloads, using local compute for low-latency processing.

Edge-Optimized Features

Azure Local version 23H2 shines at the edge with:

• Small Form Factor Support: Compact, cost-effective devices for tight spaces.
• Disconnected Operations: Run Azure services locally without constant cloud access.
• Remote Provisioning: Set up hardware remotely via the Azure portal.

Enhanced Security

Security is a priority, with:

• Windows Defender Application Control and BitLocker for hardened VMs.
• Trusted Launch: Protection against malware-based rootkits and bootkits.
• Immutable File System (via Rubrik integration) for tamper-proof backups.

Flexible Pricing

• Pay per core through an Azure subscription.
• OEM licensing includes Windows Server 2025 guest VMs for cost savings.
• Try it free for 60 days.

Easy Upgrades

Upgrading from Azure Stack HCI version 22H2 to Azure Local version 23H2 is a two-step process: update the OS, then enable Azure Arc solutions via the Azure portal. Note that stretched clusters aren’t supported in version 23H2, but existing ones can upgrade and stay supported until May 2025.

Real-World Use Cases

Azure Local excels in scenarios needing low latency, data sovereignty, or offline capabilities. Here are some examples:

• Retail and Branch Offices: Run point-of-sale systems, inventory tools, and IoT apps locally with cloud monitoring. Coles Group uses Azure Local for cost-effective AI workloads.
• Manufacturing: Deploy high-performance databases like SQL Server for real-time analytics. Emirates Global Aluminum saw cost savings and agility with Azure Local.
• Healthcare: Protect sensitive patient data while using Azure Backup for compliance. Compact devices support mobile clinics and remote facilities.
• Edge Computing: Run containerized apps and Azure PaaS services (e.g., Azure SQL MI) at remote sites, with GitOps for easy deployment.
• Disaster Recovery: Use Azure Site Recovery for high availability and DRaaS to minimize downtime.

Why Choose Azure Local?

Azure Local stands out for several reasons:

• Performance: Top-tier virtualization with Hyper-V and Storage Spaces Direct.
• Flexibility: Works with a wide range of hardware and familiar tools.
• Cost Savings: Pay-as-you-go pricing with no upfront software costs.
• Scalability: Scales from single nodes to large clusters.
• Ease of Use: Builds on existing Hyper-V and server admin skills.
• Partner Ecosystem: Backed by trusted vendors like Dell, HPE, and Lenovo.

Getting Started with Azure Local

Ready to try Azure Local? Here’s how to begin:

1. Assess Hardware: Check the Azure Local Catalog for validated hardware and use the Azure Stack HCI Sizer tool.
2. Download and Install: Get the Azure Stack HCI OS from the Azure portal (free 60-day trial). Many solutions come pre-installed, or you can install manually.
3. Connect to Azure: Register your cluster with Azure Arc for management and hybrid services using the Azure portal, Windows Admin Center, or PowerShell.
4. Explore Resources: Visit the Azure Local documentation and read the Introducing Azure Local blog post.
5. Upgrade Existing Systems: Follow the two-step upgrade from Azure Stack HCI version 22H2 to Azure Local version 23H2. Version 22H2 support ends in May 2025.

Challenges to Consider

Azure Local is powerful, but there are a few things to keep in mind:

• Hardware Requirements: Version 23H2 requires ECC RAM, which may limit hardware options.
• Network Needs: SDN setup requires a virtual hard disk for Network Controller VMs and specific network configurations.
• Learning Curve: New features like Azure Arc and AKS may require training, even for Hyper-V pros.
• Stretched Clusters: Not supported in version 23H2, so multi-site deployments need alternatives.

Wrapping Up

Azure Local, the next evolution of Azure Stack HCI, is a robust platform for bridging on-premises, edge, and cloud environments. With its rich features, flexible hardware options, and deep Azure integration, it’s perfect for modern hybrid and edge computing needs. Whether you’re running traditional VMs, containerized apps, or AI workloads, Azure Local delivers the performance, security, and scalability to fuel innovation.

As hybrid cloud strategies become the norm, Azure Local offers a unified, future-ready solution. Check out the Azure Local website to learn more, and start your free trial to experience Azure at the edge.

Got questions about Azure Local or want to share your experience? Drop a comment below and let’s keep the conversation going!