Hybrid Infrastructure
Azure Arc & Azure Local
Azure Arc and Azure Local are Microsoft's hybrid infrastructure solutions, extending Azure's management, security, and services to systems running outside of Azure — whether on-premises, at the edge, or in other clouds. Azure Arc connects an organization's existing infrastructure to Azure, while Azure Local provides a purpose-built, cloud-connected infrastructure platform for organizations building or refreshing on-premises systems. Together, they give organizations a consistent way to manage and secure infrastructure wherever it resides. Below is an overview of what each includes and the value it delivers.

Azure Arc
Designed for: Organizations that already have existing servers, virtual machines, or Kubernetes clusters running outside of Azure and want to manage them consistently through Azure.
What's Included
- A centralized control plane that extends Azure management to infrastructure running anywhere
- Support for physical servers, virtual machines, and Kubernetes clusters, whether on-premises, at the edge, or in other public clouds
- The ability to bring existing SQL Server instances under Azure-based management
- Consistent governance, policy enforcement, and role-based access control across all connected resources
- Access to Azure services such as Azure Monitor and Microsoft Defender extended to non-Azure infrastructure
Why It Matters for Your Business
Azure Arc allows a business to bring its existing infrastructure — including systems running in other clouds or in its own data center — under one consistent set of management tools, security policies, and visibility, without needing to physically move or replace that infrastructure. This is particularly valuable for organizations with a mix of on-premises systems, multiple cloud providers, and edge locations, since it eliminates the need to manage each environment separately using different tools. The core Azure Arc control plane itself comes at no additional cost, with optional add-on services available for organizations that want deeper monitoring, security, or update management extended to their connected infrastructure.
Azure Local
Designed for: Organizations building new or refreshed on-premises infrastructure that want the Azure experience delivered locally — for data privacy, low latency, or local control requirements.
What's Included
- A hyperconverged infrastructure (HCI) platform running on validated hardware, deployed in an organization's own data center or edge locations
- Azure Arc built in from day one, providing unified management directly through the Azure portal
- Support for virtual machines, containerized workloads, and select Azure services running locally, including Azure Kubernetes Service and Azure Virtual Desktop
- A consistent management experience using familiar tools such as the Azure portal and PowerShell
- The ability to operate in a disconnected or fully air-gapped mode where required
Why It Matters for Your Business
Azure Local is designed for organizations that need infrastructure physically located on their own premises — often due to data residency requirements, latency-sensitive applications, or regulatory obligations — while still wanting the modern management experience and cloud integration that Azure provides. Running Azure Virtual Desktop locally on Azure Local, for example, can deliver faster, more secure virtual desktops for regulated or remote sites than a fully cloud-hosted deployment. Because Azure Arc is built directly into Azure Local, organizations get the benefits of unified, Azure-based governance and monitoring from the very first day of deployment, without additional configuration.
Summary
- Azure Arc — connects existing infrastructure, wherever it runs, to Azure's management, governance, and security tools.
- Azure Local — a purpose-built, cloud-connected infrastructure platform for organizations deploying new or refreshed infrastructure on-premises or at the edge.
Azure Arc and Azure Local are designed to work together: Azure Local comes with Azure Arc built in for organizations standing up new infrastructure, while Azure Arc alone extends the same consistent management experience to infrastructure organizations already own. Many organizations use both as part of a broader hybrid infrastructure strategy.
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