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Azure Arc Blog
3 MIN READ

Azure Local expands SAN capabilities with iSCSI support

saniya0307's avatar
saniya0307
Icon for Microsoft rankMicrosoft
Jul 22, 2026
As organizations modernize datacenters and accelerate migration from legacy virtualization platforms, flexibility in storage architecture has become a key requirement. Customers increasingly want to ...
Updated Jul 21, 2026
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adaptive cloud
hybrid
SteveBNZ's avatar
SteveBNZ
Copper Contributor
Jul 23, 2026

And just a reminder that Azure Local deployments using external storage (FC or iSCSI) aren't eligible for Azure Hybrid Benefit so you will need to pay the Azure Local monthly service fee to run it.

And the Azure Local monthly service fee for external storage deployments is priced at double that of hyperconverged deployments, the physical core/month cost being only a tad lower than current VMware VVF core costs.

This means cost is not a compelling reason to switch from VMware to Azure Local if using external storage.

😔