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Azure Stack Hub - Azure Services On-Premises

Azure Stack Hub enables running Azure services in your own data center for hybrid cloud scenarios and data residency requirements.

hybrid-multicloud
Pricing Model Usage-based (connected) or capacity-based (disconnected)
Availability On-premises deployment as an integrated hardware system
Data Sovereignty Full data sovereignty possible, especially in disconnected operation
Reliability Depends on hardware and operator, no blanket Azure SLA SLA

What is Azure Stack Hub?

Azure Stack Hub is an integrated hardware platform (a scale unit of 4 to 16 servers) that delivers Azure IaaS and PaaS services in your own data center. Organizations run virtual machines, storage, App Service, and SQL or MySQL databases locally while using the same APIs, tools, and DevOps processes (ARM, CLI, PowerShell) as in the public Azure cloud.

The platform targets organizations with strict requirements for data residency, regulatory compliance, or network latency. Azure Stack Hub can operate both with an existing Azure cloud connection (connected, using Microsoft Entra ID for identity) and fully isolated (disconnected, using AD FS for identity). In disconnected operation, no data leaves the appliance toward Microsoft.

Azure Stack Hub is delivered as a validated hardware system from partners such as Dell, HPE, Lenovo, and Cisco and follows Microsoft’s Modern Lifecycle Policy with regular updates.

Core Features

  • Foundational resource providers for compute (VMs), networking (SDN/NFV), and storage (blob, queue, table, Key Vault)
  • Optional PaaS resource providers: App Service (web, API, Functions), SQL Server, and MySQL Server
  • Identical APIs and tools as Azure Public Cloud (ARM, CLI, PowerShell)
  • Connected and disconnected operating modes
  • Self-service portal for tenants with plans, offers, and quotas, plus role-based access control

Typical Use Cases

Regulated industries: Financial services, government agencies, and healthcare organizations that want to use Azure services but cannot allow their data to leave their own data center.

Edge locations: Factories, ships, or remote locations with limited or no internet connectivity that still need a cloud application model.

Hybrid architectures: Distributing workloads between Azure Public Cloud and local infrastructure based on latency, cost, or compliance requirements, with local processing followed by aggregation in Azure.

Benefits

  • Consistent development and operations model across cloud and on-premises, without code changes
  • Full control over data and access, especially in disconnected operation
  • Flexible billing: usage-based (connected) or capacity-based (disconnected)
  • Regular updates from Microsoft for security and new features

Frequently Asked Questions

What is the difference between Azure Stack Hub and Azure Local (formerly Azure Stack HCI)?

Azure Stack Hub is a complete Azure extension for your own data center with its own self-service portal, resource model, and optional PaaS services such as App Service or SQL Server. Azure Local (formerly Azure Stack HCI), by contrast, is primarily a hyperconverged infrastructure solution for virtualization and containers, without a standalone PaaS marketplace.

Can Azure Stack Hub operate without internet connectivity?

Yes. In disconnected mode, Azure Stack Hub functions fully offline, with identity handled via AD FS instead of Microsoft Entra ID. Updates are then applied manually and billing is capacity-based rather than usage-based.

Which Azure services are available on Azure Stack Hub?

Available services include the foundational IaaS services compute, networking, and storage, plus optional App Service (including Azure Functions), SQL Server, and MySQL Server as resource providers. Not all Azure public cloud services are available on Stack Hub; the exact feature set depends on the installed version.

Integration with innFactory

As a Microsoft Solutions Partner, innFactory supports you with Azure Stack Hub: from evaluation and capacity planning to setup and configuration, ongoing operations, and integration with Azure Public Cloud.

Note: All product information on this page has been compiled with care, but is provided without guarantee and may be outdated or incomplete. Cloud services evolve rapidly — features, pricing, SLAs, and availability change frequently. Authoritative and up-to-date information can only be found on the official product page of Azure (official documentation). This page does not represent an offer by Azure.

Microsoft Solutions Partner

innFactory is a Microsoft Solutions Partner. We provide expert consulting, implementation, and managed services for Azure.

Microsoft Solutions Partner Microsoft Data & AI

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