Azure Local: Bridging On-Premises Infrastructure with Azure Cloud

Technical Overview

In today’s hybrid cloud era, organisations are increasingly seeking solutions that allow them to seamlessly integrate their on-premises infrastructure with the scalability and innovation of the cloud. Enter Azure Local, formerly known as Azure Stack HCI. This service is Microsoft’s hybrid cloud platform designed to bring Azure services and capabilities directly to your on-premises data centres. By leveraging Azure Local, businesses can modernise their infrastructure, run virtualised workloads, and integrate with Azure for unified management and advanced services.

At its core, Azure Local is a hyper-converged infrastructure (HCI) solution that combines software-defined compute, storage, and networking. It is built on Windows Server technologies and integrates natively with Azure, enabling organisations to run workloads locally while maintaining a direct connection to Azure for management, monitoring, and additional services.

Architecture

Azure Local operates on a hyper-converged infrastructure model, where compute, storage, and networking resources are tightly integrated into a single, software-defined solution. This architecture eliminates the need for traditional, siloed hardware setups, reducing complexity and improving performance. The solution is deployed on validated hardware from Microsoft’s OEM partners, ensuring compatibility and optimal performance.

Key components of the Azure Local architecture include:

• Hyper-V Virtualisation: Azure Local leverages Hyper-V to run virtualised workloads efficiently, offering high availability and scalability.
• Storage Spaces Direct (S2D): This software-defined storage technology pools local storage across nodes, providing high-performance and resilient storage for workloads.
• Software-Defined Networking (SDN): Azure Local includes SDN capabilities to simplify network management and enhance security.
• Azure Integration: Native integration with Azure services such as Azure Monitor, Azure Backup, and Azure Site Recovery allows for unified management and disaster recovery.

Scalability

Azure Local is designed to scale with your organisation’s needs. Starting with as few as two nodes, the solution can scale out to 16 nodes per cluster, supporting thousands of virtual machines. This scalability ensures that businesses of all sizes, from small enterprises to large corporations, can benefit from Azure Local’s capabilities.

Additionally, Azure Local supports a wide range of workloads, including virtual desktop infrastructure (VDI), database applications, and containerised workloads. Its ability to integrate with Azure Kubernetes Service (AKS) further enhances its scalability, enabling organisations to run modern, cloud-native applications on-premises.

Data Processing

Azure Local excels in processing data locally, making it an ideal solution for scenarios where low latency and data sovereignty are critical. For example, industries such as healthcare, finance, and manufacturing often require data to be processed and stored locally due to regulatory requirements or the need for real-time insights. Azure Local ensures that data remains on-premises while still benefiting from Azure’s advanced analytics and AI capabilities through hybrid integration.

Integration Patterns

One of Azure Local’s standout features is its seamless integration with Azure. This is achieved through Azure Arc, a service that extends Azure management and governance capabilities to on-premises environments. With Azure Arc, organisations can manage their Azure Local infrastructure alongside their Azure resources, using a single pane of glass.

Common integration patterns include:

• Unified Management: Use Azure Arc to manage Azure Local clusters, apply policies, and monitor performance.
• Hybrid Identity: Leverage Entra ID for consistent identity and access management across on-premises and cloud environments.
• Backup and Disaster Recovery: Integrate with Azure Backup and Azure Site Recovery for robust data protection.
• Cloud Bursting: Extend workloads to Azure during peak demand periods, ensuring scalability and cost efficiency.

Advanced Use Cases

Azure Local is not just a replacement for traditional infrastructure; it’s a platform for innovation. Advanced use cases include:

• Edge Computing: Deploy Azure Local in remote or branch offices to process data locally and send aggregated insights to Azure.
• AI and Machine Learning: Run AI models locally for real-time decision-making, while leveraging Azure Machine Learning for training and model updates.
• IoT Integration: Combine Azure Local with Azure IoT Hub to process IoT data at the edge, reducing latency and bandwidth costs.

Business Relevance

For organisations navigating the complexities of digital transformation, Azure Local offers a compelling solution. It bridges the gap between on-premises and cloud environments, enabling businesses to modernise their infrastructure without abandoning existing investments. Key business benefits include:

• Cost Efficiency: Reduce capital expenditures by consolidating infrastructure and leveraging pay-as-you-go Azure services.
• Regulatory Compliance: Meet data sovereignty and compliance requirements by keeping sensitive data on-premises.
• Operational Agility: Quickly adapt to changing business needs with scalable and flexible infrastructure.
• Enhanced Security: Benefit from Azure’s advanced security features, such as Microsoft Defender for Cloud, while maintaining control over local data.

Best Practices

To maximise the value of Azure Local, organisations should follow these best practices:

• Hardware Validation: Use validated hardware from Microsoft’s OEM partners to ensure compatibility and performance. Key vendors include Dell EMC, HPE, Lenovo, and Fujitsu.
• Hybrid Identity: Implement Entra ID for consistent identity management across on-premises and cloud environments.
• Monitoring and Management: Use Azure Monitor and Azure Arc to gain insights into performance and apply consistent policies.
• Disaster Recovery: Integrate with Azure Site Recovery to ensure business continuity in the event of a failure.
• Regular Updates: Keep Azure Local software up to date to benefit from the latest features and security enhancements.

Relevant Industries

Azure Local is particularly well-suited for industries that require a hybrid approach to IT infrastructure. These include:

• Healthcare: Process and store patient data locally to comply with regulations such as HIPAA, while leveraging Azure for advanced analytics.
• Finance: Maintain data sovereignty and ensure low-latency processing for financial transactions.
• Manufacturing: Deploy Azure Local at factory sites to enable real-time monitoring and predictive maintenance.
• Retail: Use Azure Local in stores to process point-of-sale data locally and integrate with Azure for inventory management.

Azure Arc: Bridging Azure Local to the Cloud

Azure Arc plays a pivotal role in extending Azure’s capabilities to Azure Local environments. By enabling Azure Arc, organisations can manage their on-premises infrastructure as if it were part of Azure, simplifying operations and enhancing governance.

Key features of Azure Arc include:

• Centralised Management: Manage Azure Local clusters, virtual machines, and Kubernetes clusters from the Azure portal.
• Policy Enforcement: Apply Azure policies to ensure compliance across on-premises and cloud resources.
• DevOps Integration: Use Azure DevOps and GitHub to automate deployments and manage configurations.
• Advanced Analytics: Leverage Azure Monitor and Log Analytics to gain insights into performance and troubleshoot issues.

By bridging Azure Local with Azure through Azure Arc, organisations can achieve a truly hybrid cloud environment, combining the best of both worlds.

Conclusion

Azure Local is a transformative solution for organisations looking to modernise their infrastructure while maintaining control over their data. With its robust architecture, seamless Azure integration, and support from leading hardware vendors, Azure Local empowers businesses to innovate and adapt in a rapidly changing digital landscape. By leveraging Azure Arc, organisations can further enhance their hybrid cloud strategy, ensuring consistent management and governance across all environments.

Related Azure Services

• ARC
• Entra ID
• Defender for Cloud
• Virtual Network
• Virtual Machine