Contributed by Kevin Van Mondfrans & Steve Harris
In a recent post, we explored the rising cost concerns surrounding Broadcom’s acquisition of VMware and what that means for IT leaders evaluating modernization options. Since then, we’ve seen a clear shift: organizations already invested in Microsoft Azure Cloud are now actively exploring Azure Local as a credible, future-proof replacement for their on-prem VMware environments.
This growing momentum is no coincidence.
Why Azure Local Is Gaining Traction
As CIOs and infrastructure leaders weigh their options, the appeal of Azure Local is simple: it offers a path away from VMware that doesn’t involve a full re-architecture or sacrifice of control. And if you’re already using Azure Cloud? The case becomes even stronger.
Azure Local delivers a distributed cloud model, extending Azure-native management and governance to on-premises workloads. Built on Microsoft-validated hardware and managed through Azure Arc, it creates a consistent operating environment across both cloud and data center—without vendor lock-in.
We’re seeing real market energy behind this solution. Azure Local is no longer just a niche experiment—it’s a viable, strategic platform for organizations seeking to simplify operations and reduce VMware dependency.
What Is Azure Local?
Azure Local is Microsoft’s distributed infrastructure solution that brings public cloud control and consistency to your on-prem environment. It’s deployed on validated OEM hardware (e.g., DataOn, Dell, HPE), managed via Azure Arc, and supports both VM-based and Kubernetes-based workloads, Azure Virtual Desktop, Azure IoT, Operations, Azure Backup and Azure Site Recovery.
Importantly, Azure Local is optimized for distributed sites or smaller environments—ideal for branch locations, regional data centers, or mid-sized organizations. It supports up to three clusters with a maximum of 16 nodes each, which may limit its applicability for large-scale enterprise data centers. But for many hybrid organizations, especially those already running workloads in Azure, Azure Local hits the sweet spot between simplicity and control.
Top Benefits of Replacing VMware with Azure Local
1. Unified Cloud & On-Prem Management
Azure Local uses the same Azure control plane used in the public cloud—enabling a single, integrated view of your environment via Azure Arc and Resource Bridge.
2. Cost Predictability and Licensing Relief
Azure Local offers flexible, core-based licensing. You can:
- Leverage your existing Windows Server Datacenter and Software Assurance licenses
- Or use a consumption-based model for on-prem
- Avoid the aggressive bundling and subscription lock-in now standard with VMware under Broadcom
3. Run Existing VMs Without Rebuilding
Azure Local is powered by Microsoft Hyper-V, making it simple to migrate workloads without app reengineering. Continue running VMs as-is, while modernizing at your own pace.
4. Future-Proof Infrastructure
Designed for hybrid and edge computing, Azure Local also includes a disconnected mode (in preview) for sovereign cloud, air-gapped, or remote operations. Microsoft continues to expand service capabilities to support growing hybrid and regulatory demands.
How It Works
Azure Local deployments are connected to your Azure subscription using Azure Arc, which extends the Azure control plane to your on-prem environment. Through Azure Resource Bridge, on-premises virtual machines are projected as Azure-native resources—allowing you to manage them within the Azure portal alongside your cloud infrastructure. For those who prefer traditional tools, Azure Local also supports local administration using Windows Admin Center, PowerShell, and SCVMM. In its standard configuration, Azure Local must sync with the Azure cloud at least once every 30 days. However, Microsoft also offers a disconnected operations model for specialized use cases, which is currently in preview.
Key Considerations Before You Move
Before transitioning to Azure Local, organizations should carefully evaluate a few critical factors. First, Microsoft requires that all Azure Local deployments run on validated hardware sourced from certified OEM partners. You cannot reuse unsupported infrastructure. Second, while Azure Local integrates well with Azure’s control plane, it doesn’t provide full parity with the Azure public cloud—meaning services like App Service, Azure Functions, or Azure SQL Database aren’t available locally. Lastly, connectivity planning is essential. Unless you are deploying the disconnected mode, your cluster must regularly connect to Azure to remain in compliance and maintain full functionality.
Is Azure Local Right for You?
If your organization:
- Has VMware on-prem and is already standardized on Azure Cloud
- Wants to escape Broadcom’s aggressive VMware licensing model
- Needs a cloud-consistent management experience across hybrid environments
- Operates in distributed sites or smaller data centers
Then Azure Local is more than viable—it’s strategic.
InterVision Can Help You Navigate the Move
InterVision has deep expertise in Azure architecture, hybrid cloud operations, and VMware migration strategies. We help clients:
- Evaluate their current VMware footprint
- Plan and execute a transition to Azure Local
- Maximize licensing benefits and reduce long-term TCO
Closing Thought: A Strategic Fit, Not a One-Size-Fits-All
Azure Local represents a thoughtful option for organizations already invested in Microsoft Azure who are looking to reduce their dependency on VMware. It offers operational consistency, simplified management, and licensing flexibility—especially for distributed environments that don’t require large-scale clustering.
That said, it’s not the right fit for every enterprise. Organizations with highly complex, large-scale virtualization footprints may find Azure Local’s scale limitations or feature gaps to be constraints. As with any infrastructure transition, success depends on aligning the platform’s strengths with your organization’s goals, technical requirements, and operational model.
