Introducing Azure Local: cloud infrastructure for distributed locations enabled by Azure Arc
Today at Microsoft Ignite 2024 we're introducing Azure Local, cloud-connected infrastructure that can be deployed at your physical locations and under your operational control. With Azure Local, you can run the foundational Azure compute, networking, storage, and application services locally on hardware from your preferred vendor, providing flexibility to meet your requirements and budget.Evolving Stretch Clustering for Azure Local
Stretched clusters in Azure Local, version 22H2 (formerly Azure Stack HCI, version 22H2) entail a specific technical implementation of storage replication that spans a cluster across two sites. Azure Local, version 23H2 has evolved from a cloud-connected operating system to an Arc-enabled solution with Arc Resource Bridge, Arc VM, and AKS enabled by Azure Arc. Azure Local, version 23H2 expands the requirements for multi-site scenarios beyond the OS layer, while Stretched clusters do not encompass the entire solution stack. Based on customer feedback, the new Azure Local release will replace the Stretched clusters defined in version 22H2 with new high availability and disaster recovery options. For Short Distance Rack Aware Cluster is a new cluster option which spans two separate racks or rooms within the same Layer-2 network at a single location, such as a manufacturing plant or a campus. Each rack functions as a local availability zone across layers from OS to Arc management including Arc VMs and AKS enabled by Azure Arc, providing fault isolation and workload placement within the cluster. The solution is configured with one storage pool to reduce additional storage replication and enhance storage efficiency. This solution delivers the same Azure deployment and management experience as a standard cluster. This setup is suitable for edge locations and can scale up to 8 nodes, with 4 nodes in each rack. Rack Aware Cluster is currently in private preview and is slated to public preview and general release in 2025. For Long Distance Azure Site Recovery can be used to replicate on-premises Azure Local virtual machines into Azure and protect business-critical workloads. This allows Azure cloud to serve as a disaster recovery site, enabling critical VMs to be failed over to Azure in case of a local cluster disaster, and then failed back to the on-premises cluster when it becomes operational again. If you cannot fail over certain workloads to cloud and require long distance of disaster recovery, like in two different cities, you can leverage Hyper-V Replica to replicate Arc VMs to the secondary site. Those VMs will become Hyper-V VMs on the secondary site, they will become Arc VMs once they fail back to the original cluster on the first site. Additional Options beyond Azure Local If the above solutions in Azure Local do not cover your needs, you can fully customize your solution with Windows Server 2025 which introduces several advanced hybrid cloud capabilities designed to enhance operational flexibility and connectivity across various environments. Additionally, it offers various replication technologies like Hyper-V Replica, Storage Replica and external SAN replication that enable the development of tailored datacenter disaster recovery solutions. Learn more from the Windows Server 2025 now generally available, with advanced security, improved performance, and cloud agility - Microsoft Windows Server Blog What to do with existing Stretched clusters on version 22H2 Stretched clusters and Storage Replica are not supported in Azure Local, version 23H2 and beyond. However, version 22H2 stretched clusters can stay in supported state in version 23H2 by performing the first step of operating system upgrade as shown in the following diagram to 23H2 OS. The second step of the solution upgrade to Azure Local is not applicable to stretched clusters. This provides extra time to assess the most suitable future solution for your needs. Please refer to the About Azure Local upgrade to version 23H2 - Azure Local | Microsoft Learn for more information on the 23H2 upgrade. Refer the blog on Upgrade from Azure Stack HCI, version 22H2 to Azure Local | Microsoft Community Hub. Conclusion We are excited to be bringing Rack Aware Clusters and Azure Site Recovery to Azure Local. These high availability and disaster recovery options allow customers to address various scenarios with a modern cloud experience and simplified management.Announcing General Availability: Windows Server Management enabled by Azure Arc
Windows Server Management enabled by Azure Arc offers customers with Windows Server licenses that have active Software Assurances or Windows Server licenses that are active subscription licenses the following key benefits: Azure Update Manager Azure Change Tracking and Inventory Azure Machine Configuration Windows Admin Center in Azure for Arc Remote Support Network HUD Best Practices Assessment Azure Site Recovery (Configuration Only) Upon attestation, customers receive access to the following at no additional cost beyond associated networking, compute, storage, and log ingestion charges. These same capabilities are also available for customers enrolled in Windows Server 2025 Pay as you Go licensing enabled by Azure Arc. Learn more at Windows Server Management enabled by Azure Arc - Azure Arc | Microsoft Learn or watch Video: Free Azure Services for Non-Azure Windows Servers Covered by SA Powered by Azure Arc! To get started, connect your servers to Azure Arc, attest for these benefits, and deploy management services as you modernize to Azure's AI-enabled set of server management capabilities across your hybrid, multi-cloud, and edge infrastructure!Announcing Preview of Run Command on Arc-enabled servers
We are excited to announce the Public Preview of Run Command on Azure Arc-enabled servers. This feature is a game-changer for remotely and securely managing your Azure Arc-enabled servers. You can start using Azure CLI or API for Run Command today, without requiring any additional extensions or configurations, and at no additional cost.Announcing Jumpstart ArcBox 2.0
Since launched 18 months ago, the Azure Arc Jumpstart project has grown tremendously. With more than 90 automated scenarios, thousands of visitors a month, and a vivid community, the project has become the de-facto standard when it comes to where people go for learning the goodness that is Azure Arc.Simplify certificate management of on-prem IIS server with Azure Arc & Azure Key Vault VM extension
One common question which I’ve come across is certificate management for web servers. Usually when servers are hosted on Azure there are ways like storing certificates and secrets in Azure Key vault is a viable solution. I’ve come across customers who’re running servers in hybrid and few servers would still remain on-premises because of dependencies. For these web servers managing certificates is a costly affair. Common practice which I’ve seen is admin sharing the certificate with application team on some file share. This has few disadvantages. Storing the certificate in file share or on email. Based on the number of application team a lot of team gets access to certificates. Manually applying updated certificates once the expiry is near also finding which all servers this certificate is being used is a pain if you’ve a big environment with lots of web service. One better way to handle this scenario is to Store certificate in Azure Key vault centrally and Arc Enable the web server. One last step which will do the magic is Azure Key vault VM Extension. Which can be enabled on Arc Server as extension. This setup provides the advantages below. All the certificates are stored centrally in Azure Key Vault which is protected. No application team has got manual access to certificates, on-prem server will pull the certificate based on the managed identity assigned via Azure Arc. Once the cert expiry is near Admin/app team need to just goto Azure Key Vault and update the certificate with the latest version. Azure Key vault VM Extension will pull the latest certificate and apply the same to the website. $Settings = @{ secretsManagementSettings = @{ observedCertificates = @( "https://keyvaultname.vault.azure.net/secrets/certificatename" # Add more here in a comma separated list ) certificateStoreLocation = "LocalMachine" certificateStoreName = "My" pollingIntervalInS = "3600" # every hour } authenticationSettings = @{ # Don't change this line, it's required for Arc enabled servers msiEndpoint = "http://localhost:40342/metadata/identity" } } $ResourceGroup = "ARC_SERVER_RG_NAME" $ArcMachineName = "ARC_SERVER_NAME" $Location = "ARC_SERVER_LOCATION (e.g. eastus2)" New-AzConnectedMachineExtension -ResourceGroupName $ResourceGroup -MachineName $ArcMachineName -Name "KeyVaultForWindows" -Location $Location -Publisher "Microsoft.Azure.KeyVault" -ExtensionType "KeyVaultForWindows" -Setting (ConvertTo-Json $Settings) For auto renewal of certificate, we’ll need to enable IIS Rebind. This is how Arc VM Extension looks like when it’s enabled. Assigning permission to Arc server to fetch the certificate from keyvault. You can use access policy on Keyvault as well, it’s supported. Versions of the certificate/new certificate can be uploaded from key vault certificate blade and looks like below. If you’re renewing certificates and wanted to see if certificates are getting pulled down properly or not you can check error logs located here. C:\ProgramData\Guestconfig\extension_logs\Microsoft.Azure.Keyvault.keyvaultforwindows If you’re running Azure VM similar thing can be achieved : https://learn.microsoft.com/en-us/azure/virtual-machines/extensions/key-vault-windows Cert Rebind in IIS: https://learn.microsoft.com/en-us/iis/get-started/whats-new-in-iis-85/certificate-rebind-in-iis85 Visit my Blog: https://www.azuredoctor.com/ Public blogpost: https://www.azuredoctor.com/posts/arc-keyvault/Microsoft 365 Local is Generally Available
In today’s digital landscape, organizations and governments are prioritizing data sovereignty to comply with local regulations, protect sensitive information, and safeguard national security. This growing demand for robust jurisdictional controls makes the Microsoft Sovereign Cloud offering especially compelling, providing flexibility and assurance for complex requirements. For those with the most stringent needs, Azure Local enables data and workloads to remain within jurisdictional borders, supporting mission-critical workloads and now expanding to include Microsoft’s productivity solutions—so customers can securely collaborate and communicate within a sovereign private cloud environment. Today, we’re excited to announce the general availability of Microsoft 365 Local. Microsoft 365 Local is a deployment framework for enabling core collaboration and communication tools—including Exchange Server, SharePoint Server, and Skype for Business Server—on Azure Local. Built on a validated reference architecture using Azure Local Premier Solutions , it provides compatibility and support for sovereign deployments. Partner-led services provide guidance on sizing and configuration, ensuring a full-stack deployment including best practices for networking and security. Managing infrastructure across a wide range of workloads is simplified with Azure as your control plane, offering cloud-consistent, at-scale management capabilities. In the Azure portal, you get full visibility into your Microsoft 365 Local deployment across the servers and clusters. All hosts and virtual machines (VMs) are Arc-enabled out of the box, providing built-in visibility into connectivity, health, updates, and security alerts and recommendations. Microsoft 365 Local leverages Azure Local’s best-in-class sovereign and security controls, including Network Security Groups managed with Software Defined Networking enabled by Azure Arc, to isolate networks and secure access to infrastructure and workloads. Azure Local also uses a secure by default strategy by applying a security baseline of over 300 settings on both the host infrastructure and the VMs running the productivity workloads. These security baselines incorporate best practices for network security, identity management, privileged access, data protection, and more—helping organizations maintain compliance and reduce risk. Customers who want to take advantage of Azure as the control plane for Microsoft 365 Local can now benefit from a seamless cloud-based infrastructure management experience, including Azure services like Azure Monitor and Microsoft Defender for Cloud—available today with Microsoft 365 Local connected to Azure. For organizations with the most stringent jurisdictional requirements that need to operate Microsoft 365 Local in a fully disconnected environment, support for Azure Local disconnected operations will be available in early 2026. To learn more about Microsoft 365 Local, visit https://aka.ms/M365LocalDocs. If you’d like to connect with an authorized partner for consultation and deployment support, reach out to your Microsoft account team or visit https://aka.ms/M365LocalSignup.Cloud infrastructure for disconnected environments enabled by Azure Arc
Organizations in highly regulated industries such as government, defense, financial services, healthcare, and energy often operate under strict security and compliance requirements and across distributed locations, some with limited or no connectivity to public cloud. Leveraging advanced capabilities, including AI, in the face of this complexity can be time-consuming and resource intensive. Azure Local, enabled by Azure Arc, offers simplicity. Azure Local’s distributed infrastructure extends cloud services and security across distributed locations, including customer-owned on-premises environments. Through Azure Arc, customers benefit from a single management experience and full operational control that is consistent from cloud to edge. Available in preview to pre-qualified customers, Azure Local with disconnected operations extends these capabilities even further – enabling organizations to deploy, manage, and operate cloud-native infrastructure and services in completely disconnected or air-gapped networks. What is disconnected operations? Disconnected operations is an add-on capability of Azure Local, delivered as a virtual appliance, that enables the deployment and lifecycle management of your Azure Local infrastructure and Arc-enabled services, without any dependency on a continuous cloud connection. Key Benefits Consistent Azure Experience: You can operate your disconnected environment using the same tools you already know - Azure Portal, Azure CLI and ARM Templates extended through a local control plane. Built-in Azure Services: Through Azure Arc, you can deploy, update, and manage Azure services such as Azure Local VMs, Azure Kubernetes Service (AKS), etc. Data Residency and Control: You can govern and keep data within your organization's physical and legal jurisdiction to meet data residency, operational autonomy, and technological isolation requirements. Key Use Cases Azure Local with disconnected operations unlocks a range of impactful use cases for regulated industries: Government and Defense: Running sensitive government workloads and classified data more securely in air-gapped and tactical environments with familiar Azure management and operations. Manufacturing: Deploying and managing mission-critical applications like industrial process automation and control systems for real-time optimizations in more highly secure environments with zero connectivity. Financial Services: Enhanced protection of sensitive financial data with real time data analytics and decision making, while ensuring compliance with strict regulations in isolated networks. Healthcare: Running critical workloads with a need for real-time processing, storing and managing sensitive patient data with the increased levels of privacy and security in disconnected environments Energy: Operating critical infrastructure in isolated environments, such as electrical production and distribution facilities, oil rigs, or remote pipelines. Here is an example of how disconnected operations for Azure Local can provide mission critical emergency response and recovery efforts by providing essential services when critical infrastructure and networks are unavailable. Core Features and capabilities Simplified Deployment and Management Download and deploy the disconnected operations virtual appliance on Azure Local Premier Solutions through a streamlined user interface. Create and manage Azure Local instances using the local control plane, with the same tooling experience as Azure. Offline Updates The monthly update package includes all the essential components: the appliance, Azure Local software, AKS, and Arc-enabled service agents. You can update and manage the entire Azure Local instance using the local control plane without an internet connection. Monitoring Integration You can monitor your Azure Local instances and VMs using external monitoring solutions like SCOM by installing custom management packs and monitor AKS Clusters through 3 rd party open-source solutions like Prometheus and Grafana. Run Mission-Critical Workloads – Anytime, Anywhere Azure Local VMs You can run VMs with flexible sizing, support for custom VM images, and high availability through storage replication and automatic failover – all managed through the local Azure interface. AI & Containers with AKS You can use disconnected AI containers with Azure Kubernetes Service (AKS) on Azure Local to deploy and manage AI applications in disconnected scenarios where data residency and operational autonomy is required. AKS enables the deployment and management of containerized applications such as AI agents and models, deep learning frameworks, and related tools, which can be leveraged for inferencing, fine-tuning, and training in isolated networks. AKS also automates resource scaling, allowing for the dynamic addition and removal of container instances to more efficiently utilize hardware resources, including GPUs, which are critical for AI workloads. This provides consistent Azure experience in managing Kubernetes clusters and AI workloads with the same tooling and processes in connected environments. Get Started: Resources and Next Steps Microsoft is excited to announce the upcoming preview of Disconnected Operations for Azure Local in Q3 ‘CY25 for both Commercial and Government Cloud customers. To Learn more, please visit Disconnected operations for Azure Local overview (preview) - Azure Local Ready to participate? Get Qualified! or contact your Microsoft account team. Please also check out this session at Microsoft Build https://build.microsoft.com/en-US/sessions/BRK195 by Mark Russinovich, one of the most influential minds in cloud computing. His insights into the latest Azure innovations, the future of cloud architecture and computing, is a must-watch event!
