Azure. On Your Hardware. Managed from the Cloud.
Microsoft Azure Stack HCI (now Azure Local) extends Azure services to on-premises hardware — run VMs, AKS containers, and Azure Arc workloads on validated nodes with cloud-connected management, billing, and security from the Azure portal.
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Azure Stack HCI clusters register with Azure and are managed through the Azure portal — updates, monitoring, billing, and security policies flow from the cloud without requiring manual on-premises management infrastructure.
S2D pools the local NVMe, SSD, and HDD drives of every node into a single highly-available storage pool. Automatic tiering places hot data on NVMe, warm data on SSD, and cold data on HDD — no manual storage configuration required.
The Arc Resource Bridge runs as a Linux VM on the cluster, bridging on-premises compute to Azure Arc. This enables Azure-native VM management, Azure Policy enforcement, Microsoft Defender for Cloud, and Azure Monitor — all applied to on-premises workloads.
AKS enabled by Azure Arc deploys Kubernetes worker nodes as VMs on the cluster, managed through Azure Kubernetes Service. Run containerised workloads on-premises with the same AKS management experience as Azure cloud — essential for data-sovereign AI/ML and app modernisation.
Azure Stack HCI nodes can be Secured-Core Server certified — enabling Virtualisation-Based Security (VBS), Hypervisor-Protected Code Integrity (HVCI), and Trusted Platform Module (TPM) 2.0 protections for VM workloads and the OS layer.
Azure Stack HCI includes Network Controller for SDN — enabling VXLAN-based overlay networks, microsegmentation with distributed ACLs, Software Load Balancer, and RAS Gateway for site-to-site VPN and BGP routing, all managed through Windows Admin Center or Azure portal.
Azure Stack HCI — now branded Azure Local for the latest releases — is Microsoft's hyperconverged infrastructure platform designed to run Azure services on customer-owned hardware. Unlike traditional HCI products, Azure Stack HCI is cloud-native by design: it registers with Azure on day one, is billed like an Azure service, and is managed through the Azure portal alongside cloud resources. This positions it as a compelling choice for organisations that want Azure-consistent operations but must keep workloads on-premises for data residency, latency, or compliance reasons.
Beneath the cloud management layer, Azure Stack HCI uses Storage Spaces Direct (S2D) — Microsoft's proven software-defined storage engine — to pool local drives from every node into a highly available distributed storage pool. S2D supports NVMe, SSD, and HDD drives in all-flash or hybrid configurations, with automatic performance tiering. Clusters scale from a single node (for edge deployments) up to 16 nodes per cluster, supporting up to 4 PB of storage and 1,024 VMs per host. Memory per host scales to 24 TB, making it viable for the largest in-memory database workloads.
Azure Stack HCI 23H2 (now called Azure Local) introduced the Arc Resource Bridge as a mandatory component — a Linux VM that runs on the cluster and provides deep Azure Arc integration for VM management, Azure Policy, Defender for Cloud, and Azure Monitor. AKS enabled by Azure Arc allows Kubernetes workloads to be deployed and managed from Azure, running containerised applications on-premises with the same management experience as Azure public cloud Kubernetes. The latest Azure Local releases (2503, 2505, 2603) add GPU support for NVIDIA RTX PRO 6000 Blackwell, simplified machine provisioning, and improved lifecycle management.
Run Azure-consistent workloads on-premises — same APIs, same management tools, same security policies as Azure public cloud — ideal for organisations with data residency or latency requirements preventing full cloud migration.
Deploy AKS clusters at remote sites from Azure, running AI/ML inference, retail applications, or IoT processing locally with centralised Azure management — no local Kubernetes expertise required at the edge.
Azure Stack HCI is increasingly positioned as a VMware alternative post-Broadcom acquisition — live migration tools, Azure Migrate support, and similar Hyper-V virtualisation capabilities make it a viable in-place replacement.
Financial services, healthcare, and government workloads requiring data sovereignty can access Azure-native services (AKS, Arc, Defender) while keeping data on-premises under full customer control.
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