November 10, 2025
Analyst ReportAzure Local to Gain Air-Gap Support
Several new features have been added to the Azure Local Roadmap, including the general availability of Software Defined Networking (SDN) and VMWare migrations tools, plus a preview of support for air-gapped deployments. Azure Local (formerly known as Azure Stack HCI) is Microsoft’s primary server host OS for on-premises virtualization and software-defined storage, licensed via subscription as an Azure service, and updated on an annual cadence. The SDN capabilities allow customers to use Azure Local to centrally manage on-premises network capabilities such as load balancing, routing, and switching while the VMWare migration tools assist customers in migrating on-premises VMs from VMWare to Azure Local.
Of the three, the preview of air-gapped deployments is the most significant. Since its introduction, Azure Local has required a persistent connection to an Azure cloud region with limited support for disconnected operations. Although the new preview indicates Microsoft is serious about making Azure Local a complete solution for managing on-premises infrastructure, significant limitations remain. Beyond the fact that it was only recently announced in preview with no target date for generally availability, using Azure Local for disconnected operations of any kind requires special permission from Microsoft, including a documented business need. Microsoft has not spelled out the specific requirements, making it difficult to build long-term plans around disconnected operations.
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