Understanding Azure Arc: A Technical Discussion

Arc extends the Azure Resource Manager (ARM) management framework to enable the creation of ARM resources for servers and Kubernetes clusters hosted outside of Azure so that they can be managed in the Azure portal and other Azure management tools. This enables non-Azure deployments to be managed alongside Azure deployments using the same UIs and services, such as tags and policies, rather than using service-specific connectors (which are still required by some Azure services like Azure Backup). Arc offerings are primarily focused on Windows Server, SQL Server, and Kubernetes management, as well as some additional application service offerings. However, it is increasingly being used by Microsoft to manage and bill on-premises subscription servers like Azure Stack HCI, SQL Server pay-as-you go (PAYG), and Windows Server and SQL Server Extended Security Updates (ESUs).

Most Arc services depend on locally deployed agent software (for tasks done within the OS environment) and, in some cases, a virtual appliance (for tasks done in the host environment, such as creating new VMs):