With VMware licensing changes and rising costs, IT leaders are searching for solutions that deliver enterprise-grade virtualisation without forcing workloads into the public cloud. Azure Local is Microsoftβs answerβa hyperconverged infrastructure (HCI) platform that modernises your on-premises environment while enabling hybrid flexibility.
Azure Local is not a public cloud service. Itβs an on-premises HCI solution that combines compute, storage, and networking into a single, integrated platform. Built for hybrid scenarios, Azure Local offers:
| Feature | Azure Local | VMware |
|---|---|---|
| Deployment Model | On-premises HCI with Azure integration | On-premises virtualisation platform |
| Cloud Integration | Native Azure services (Arc, Backup, Monitor) | Requires additional products for hybrid |
| Hardware Options | Dell, HPE, Lenovo (and other vendor) certified solutions | Broad hardware compatibility |
| Licensing Model | Subscription-based, predictable costs | Perpetual or subscription, recent price hikes |
| Management Tools | Azure Portal, Azure Arc | vCenter, vSphere |
| Migration Support | Azure Migrate for VMware workloads | Native VMware tools |
| Public Cloud Dependency | None β fully local | None, but hybrid requires extra components |
Migrating from VMware doesnβt have to be painful. Azure Migrate is Microsoftβs centralised migration hub, designed to make the process smooth and low-risk.

Why It Matters: Azure Migrate enables fast, low-risk migration without re-architecting applications, helping IT Ops teams modernise infrastructure quickly and confidently.
Azure Local is a future-ready HCI solution that gives you VMware-level capabilities with better cost control, hybrid flexibility, and enterprise hardware options. Combined with Azure Migrate, itβs the easiest way to modernise your data centre without moving to the public cloud.