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BLOG: Explaining Azure Local additions to licensing and hardware ecosystem - June 2026
Changelog: 1.2 - improved readability in licensing comparison section, adding sources. 1.1 - corrections for S2D + SAN / or SAN only, added link for solution comparison. 1.0 - initial version In this blog I will inform you about noteable additions and changes in terms of Azure Local Licensing and changes to the qualified, certified hardware required. Some of these changes also making it much easier re-using existing hardware with Azure Local, such as SANs. As this blog uses a couple of acronyms, please make yourself familiar with these in the terminology section at the end of this post, as it differs a bit from what is used with Windows Server. ๐Change 1 - Licensing updates: Microsoft has released an addition to their all-known Azure Local pricelist and licensing conditions. What's new? Host Servicing Fee and revoked Azure Hybrid Benefits for Azure Local have been clarified based on its deployment decisions, when used with S2D + SAN or SAN and ALDO. Formerly revoked for M365 Local through product terms changes. With this Microsoft has introduced a new tier model for Azure Local Host fees based on the specific assignment of the deployed instance. Tier 1: Azure Local using Storage Spaces Direct (default) Tier 2: Azure Local for disaggregated deployments or hyperconverged deployments with external storage. Tier 3: Azure Local with disconnected operations, locally hosted control plane. Learn more about the the new Azure Local pricing tiers. Important note: Please always consult Microsoft Product Terms preferably over other pages, slides etc., understanding the definitive terms that apply. Any licensing statements written or displayed outside Product Terms - including this blogpost - are considered complementary. They might be incomplete or outdated given the context and respective licensing program that applies. ๐Change 2 - Azure Local Solutions - hardware and ecosystem changes: Microsoft Azure Local Solutions page, formerly Azure Local Solution catalog, has seen a subtle but major overhaul some time ago. I would like to elaborate on these. The previously well-known "pyramid" of hardware certification and defined feature and support set for Azure Local has been revised. Tier 1: Premier Solutions Tier 2: Integrated Systems Tier 3: Validated Nodes The new hardware certification and defined feature and support sets: Tier 1: Premier Solutions Tier 2: Integrated Systems ๐ช๐ต๐ฎ๐ ๐ต๐ฎ๐ฝ๐ฝ๐ฒ๐ป๐ฒ๐ฑ ๐ผ๐ฟ ๐๐ถ๐น๐น ๐ต๐ฎ๐ฝ๐ฝ๐ฒ๐ป ๐๐ผ ๐๐ผ๐๐ฟ ๐ฉ๐ฎ๐น๐ถ๐ฑ๐ฎ๐๐ฒ๐ฑ ๐ก๐ผ๐ฑ๐ฒ๐? First, Validated Systems not to confuse with Azure Local validated hardware - have been entirely removed from the Azure Local Solutions | Microsoft, as a selectable solution category. Given the indications and filtering options - to my understanding - it is very unlikely that future hardware refreshes will be provided by the OEMs based on the Validated Systems. Thus I consider Validated Systems phased out / deprecated based on the readings on the Solution page, while there is no official announcement I am aware of. ๐๐ผ๐ฒ๐ ๐๐ต๐ถ๐ ๐๐ผ๐ถ๐ฑ ๐๐ผ๐๐ฟ validated solution ๐๐ผ๐ ๐ต๐ฎ๐๐ฒ ๐ฑ๐ฒ๐ฝ๐น๐ผ๐๐ฒ๐ฑ ๐ฎ๐ป๐ฑ ๐ฟ๐๐ป๐ป๐ถ๐ป๐ด? I'd say no in most cases based on the age of the hardware and would like to advise the following: Brace and keep calm. ๐๐ป Please consult the Azure Local Catalog for changes at your pace, identifying your deployed hardware. Checking for supportability (limited support or end of support statements). Validated Nodes are still visible in the Azure Catalog when choosing the filter options as shown in the picture, while the category filter itself has been removed. Please check with your Microsoft Partner and OEM, if deployed and still supported Validated Solutions actually got upgraded / or are upgradeable to Premier Nodes. I have been informed some are upgradeable from Validated Solution directly to Premier Nodes but this requires a redeployment of the nodes. How can I find my running Validated Nodes, when not listed (upgraded) in Premier Solutions or Integrated Systems? There is a selector in the Azure Local Solutions overview, call qualification generation. Wait, is that a kind of upselling? Speaking about the hardware for Azure Local, in my understanding this consolidation from a 3-tier model to a 2-tier model was long overdue and in my personal opinion I welcome it based on the technical changes and requirements Azure Local 23H2 and 24H2 implied. I wouldn't describe it as upselling and here is a pointer why: Some time ago, most Integrated Systems (Nodes) have been upgraded to Premier Solutions at no additional cost to partners and customers by Dell Technologies. While Dell took the lead, many OEMs followed suit. This also means that all fully supported deployed Azure Local nodes consistently support Quick Reboot, skipping lenghty BIOS POST time, when no UEFI firmware is pending for installation. Thankfully though, the inital Azure Local 23H2 approach by Dell, which involved pairing Premier Nodes with a mandantory layer of OEM provided software, has been dismissed. This approach required customers accepting the benefits of Premier Solutions while getting charged , storage capacity, CPU and RAM in return for a OEM specific management software and other OEM provided benefits. Vae victis, early adopters. While these remain supported, this is no longer the case for Premier Solutions of neither OEM offering these. What are your benefits when after the change potential upgrade? Please find this verbose comparison and also check the tabs on the top of the linked page: Comparison of Azure Local solutions. The benefits are huge, beneficial and practical for everyday operation, troubleshooting and support. Why the change? Microsoft has drastically improved the servicing workflow by using Azure Update Manager, Cluster Aware Update mechanisms and healthchecks, with the goal to near one-click automate the download, deployment and installation of SBE while also maintaining the Azure Local solution and keeping it up-to-date, with a friction-less and production-safe upgrade mechanism. This means monthly patching for Azure Local, since version 12.x builds based on Windows Server 2025 kernel were introduced, upgrade and monthly update reliability has finally met and exceeded expectations. Note that 11.x builds starting from 23H2 had some 'first release issues', but all teams at Microsoft worked extremely hard to overcome these. Learn more about the Azure Local releases and their update, upgrade and supportability terms. Azure Local Licensing Changes - Azure Hybrid Benefits for Windows Server Datacenter Tier / Scenario CSP Subscription (MCA) EA with SA MCAโE with SA or Subscription Other Programs with SA ๐ฉ Tier 1 โ Azure Local w. S2D Full AHB benefits Host fee pricing: 10$ per active core per month, unless exempted. ๐ฅ๏ธ No Azure Local fees or Windows Server Guest OS fees ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ No Azure Local fees or Guest OS fees ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ No Azure Local fees or Guest OS fees ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ Azure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ง Tier 2 โ Azure Local w. S2D + SAN or Azure w. SAN Azure Local host fees apply Host fee pricing: 20.1 $ per active core per month. No exemption. ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐๏ธS2D + SAN or SAN only ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐๏ธS2D + SAN or SAN only ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐๏ธS2D + SAN or SAN only ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐๏ธS2D + SAN or SAN only ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ Tier 3 โ Azure Local ALDO Offline, no Azure Arc access Host fee pricing: Contact Microsoft or eligible Microsoft partner ๐ฅ๏ธ๐ฒ Azure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐โ fully disconnected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐โ fully disconnected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐โ fully disconnected ๐ฅ๏ธ๐ฒ Azure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐โ fully disconnected ๐ฆ M365 Local on Azure Azure Local host fees apply Host fee pricing: Contact Microsoft or eligible Microsoft partner ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐ Connected ๐ฅ๏ธ ๐ฒAzure Host and Guest OS fees apply - you might license Guest OS with Windows Server Azure Subscription or through volume licensing. ๐ชช WS Arc Management benefits elibigle ๐ Connected sources: https://www.microsoft.com/licensing/terms/productoffering/MicrosoftAzure/MCA#clause-2250-h3-1 (primary) https://learn.microsoft.com/en-us/azure/azure-arc/servers/windows-server-management-overview (complementary) https://azure.microsoft.com/en-us/pricing/details/azure-local/ (complementary) https://learn.microsoft.com/en-us/windows-server/get-started/azure-hybrid-benefit?tabs=azure-local (complementary) Azure Local Terminology Term / Category Definition Nodes Physical servers participating in an Azure Local deployment. Instance A cluster of Azure Local nodes forming a single logical deployment. AzL S2D Azure Local using highestโperformance, highly available local SoftwareโDefined Storage (S2D). System Builder Extension (SBE) packages Fully tested and supported driver + firmware recipes for the current Azure Local release, provided by OEMs in partnership with Microsoft for Premier Solutions. Solution Categories Defines ease of deployment, support boundaries, and feature availability across Azure Local solution types. Azure Local hyperconverged deployments with external storage (Azure Local S2D + SAN) Azure Local S2D combined with qualified SANโattached storage. Azure Local for disaggregated deployments (Azure Local with SAN) Azure Local without S2D, using qualified SANโattached storage. Azure Local Disconnected Operations (ALDO) Fully disconnected, locally hosted control plane mimicking Azure Portal functionality, ensuring fullโstack data locality for strict governance requirements. Azure Local M365 Azure Local configuration enabling Microsoft 365โlike services onโpremises using a specialized node and instance setup. Azure Local The onโpremises Azureโconsistent platform for compute, storage, and hybrid management. CSP (Cloud Solution Provider) Sales motion/program. Not related to Intune CSP policies. MCA (Microsoft Customer Agreement) Licensing framework underlying CSP purchases. Microsoft Product Terms (PT) Official licensing terms โ the single authoritative source for Microsoft licensing information. Windows Server / Azure (Local) Hybrid Benefits (AHB) Licensing benefits for applicable programs, especially valuable for Arcโenabled servers with active Software Assurance. Particularly beneficial for customers licensing Windows Server Datacenter hardware cores via Enterprise Agreement with SA or CSP Subscription. AHB varies by product and program; Product Terms remain the authoritative source. Software Assurance (SA) Term based or compulsory in Subscriptions, bundle of licensing and usage benefits compared to perpetual licensing. Since Arc and Azure Local ROI goes far beyond "running the latest". Missed anything, spotted wrong? Let me know in the comments below.Solved457Views3likes4CommentsARC for Kubernetes Extensions
When will defender for Kubernetes and Azure Policy Extension be available in the South African North Region. We have been waiting for these extensions for some time now whilst other regions it's been available. I don't understand how you can announce GA for Kubernetes for ARC without the defender and policy extensions being available. This is a constant finding on the security recommendations, but you can't action the fix.SailCorpseJun 19, 2026Copper Contributor289Views0likes1CommentAzure Arc Private link scope regions
Hi, I am creating a following architecture: I am new to this so please forgive me. But what this picture says is that i have two ExpressRoute connection from my on-premise AD to the gateway in West Europe Region and North Europe Region. I am trying to create a fully private connection to the Azure Arc. I succeded by adding one Azure Arc Private Link scope per region and private endpoint. But when i deploy azure Arc using the script I can explicitly choose a region for this machine to belong. Since in Azure you pay per data transfer and you pay extra per trans-region transfer, will this create any extra costs if i deploy all my machines as North europe machines, given that data will be flowing through AAPLS from West Europe. And what about Azure monitor Agent? If I use the same architecture but using Azure Monitor Private Link scope: This is my architecture now, because machines going through West Europe ExpressRoute had been deployed into West Europe Region using Azure Arc. But if they were deployed inside North Europe region using the logic above, would I pay extra for trans-region transfer? I am having a trouble with this region architecture. But even if i deploy my machines in azure Arc in North Europe, the physical connection via ExpressRoute is still attached to West Europe so if I deploy AMA using Data Collection rule the logs will physically flow through west europe anyway. The only difference will be a logical belonging of machines going through west europe ExpressRoute to North Europe region. Maybe its absolutely impossible to do that and if i have azure arc private link scope in West europe i cannot assign antoher region to the arc enabled machine. Can you please help me with that?kmajchrzakJun 19, 2026Copper Contributor969Views0likes1Comment- hassanahtashamMar 18, 2026Copper Contributor628Views0likes1Comment
Can't install Azure ARC on multiple Server 2025 devices
I have multiple Server 2025 devices that when I click "Launch Azure Arc Setup" button on taskbar icon or "Azure Arc Setup" on start menu nothing happens. I then tried to download arcsetup.exe and it never advanced beyond the initializing Windows Installer screen. I got it to work on one server and 4-5 all have the same problem. Both physical and VM. Below are errors in the event log.hoyty76Jan 28, 2026Steel Contributor843Views1like6CommentsAzure ARC and Software Deployment
Hello all, We currently have SCCM in our landscape. Looking to trial Azure Arc as a replacement for Software Updates deployment. For those that already use Azure Arc for Software update deployments. What do you use for Software/Application deployments ? JTJTheseiraOct 17, 2025Copper Contributor5KViews1like6CommentsData Sink From Dataverse to Azure SQL database using azure data factory is taking really long time
Hi Everyone, Actually I'm new to the azure data factory, we are facing 2 problem while sinking data verse to azure SQL database for reporting purpose. Problem 1: We have created a azure synapse link to push the data to the azure data lake from there we are pushing data to Azure SQL DB using Azure Data Factory pipelines and data flows, Using source data as Data lake data from Dataverse and Sink as dataset from the Azure SQL Database but this process is taking time. More than 9mins to sink 32 tables. Each table contains less than 2000 rows on average. and One table contains 250k rows is there a way to reduce the time of this process? Problem 2: We are have an issue with triggering the pipelines. Is there any way to trigger on data change? If any data is changed in the data verse then the pipe line should trigger and update the respective record or table in the Azure SQL DB. Please help me in this.bharath_janjanamAug 28, 2025Copper Contributor1.2KViews1like1CommentAzure Local - Design the infrastructure - some bad design choices I have stumbled on
Hi. I wanted to share my lasted blog article where I touch on some of the bad design choices I have stumbled on when working with customers existing Azure Local deployments that broke down or in other ways behaved with poor performance or disruptions. https://www.chkja.dk/2025/07/16/azure-local-design-the-infrastructure/ I hope to inspire and feel free to share your knowledge here in the thread :)Chris_toffer0707Aug 07, 2025Iron Contributor345Views2likes1Comment
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