What is Azure Local?
Azure Local (formerly Azure Stack HCI) is Microsoft’s distributed infrastructure solution that extends Azure capabilities into customer-owned environments. It enables running modern and existing applications locally at distributed or sovereign locations, using Azure Arc as the unifying control plane between cloud and edge.
Azure Local provides the familiar Azure management tooling (Azure Portal, Azure CLI, ARM templates) for on-premises infrastructure and lets you add further Azure services such as Azure Policy, Microsoft Defender for Cloud, Azure Monitor, or Copilot for Azure. Deployments can run either continuously connected to the cloud or temporarily disconnected from the internet.
Unlike pure cloud computing, data and workloads remain entirely in your own data center, while management is handled from Azure.
Core Features
- Running Azure services on certified partner hardware in your own data center
- Unified management via Azure Portal, CLI, and ARM templates, just like cloud resources
- Azure Arc as the control plane for unified hybrid management
- Support for VMs, containers (AKS), and Azure Virtual Desktop
- Operation possible even during temporary cloud disconnection
- Windows Server and Linux workloads
Typical Use Cases
Data Sovereignty and Regulation: Organizations with strict compliance requirements (e.g. defense, energy sector) keep data in their own data center while using Azure management and tools.
Edge Computing and Local AI Inferencing: Production sites or branch offices run local Azure workloads with low latency, for example for self-checkout or quality-assurance systems, with connection to the central cloud.
Business Continuity: Mission-critical systems such as production-line or access-control systems continue running locally even during network outages.
Benefits
- Complete control over data location
- Consistent Azure experience for hybrid teams
- Leverage existing data center investments
- Can operate through temporary internet disconnection
Frequently Asked Questions
What is Azure Local?
Azure Local is Microsoft’s on-premises variant of Azure, running on certified hardware in your own data center and managed from the cloud via Azure Arc.
What is the difference from Azure Stack Hub?
Azure Stack Hub is an isolated Azure data center with its own subscription. Azure Local is an extension of your existing Azure subscription with local hardware, managed from the cloud via Azure Arc.
What hardware is required?
Azure Local runs on certified hardware from partners such as Dell, HPE, or Lenovo, following Microsoft-defined bill-of-materials configurations for CPU, RAM, storage, and networking.
How are costs calculated?
Billing is based on the number of physical CPU cores on the local hardware, plus usage-based charges for any additional Azure services used. All charges roll up into your existing Azure subscription.
Can I run AKS on Azure Local?
Yes, AKS can be deployed on Azure Local and offers a Kubernetes experience comparable to the cloud.
Integration with innFactory
As a Microsoft Solutions Partner, innFactory supports you in planning and implementing Azure Local. We help with hardware selection, architecture, and migration.
Contact us for a non-binding consultation on Azure Local.
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.
