Microsoft has both software and hardware solutions that help companies operate a hybrid cloud. This makes creating a hybrid cloud infrastructure comparatively easy, combining both the advantages of on-premises and the cloud.

The cloud is now ubiquitous, but there are still many companies that don’t want to, or cannot rely on cloud solutions. The most common reasons include existing hardware in their data center, regulatory conditions, and data management. There are often problems and uncertainties, especially when it comes to handling company or customer data. For example, many companies don’t want to store data in an external data center because of strict data protection regulations or need it in their own data center to enable access with the lowest possible latency.

All of these reasons might make sense from a business perspective, but in the future, it will be increasingly difficult for companies without cloud services to compete in the market. One solution for this is a hybrid cloud architecture. It combines two worlds: the company's data center and the cloud. This article focuses on the possibilities of integrating Azure into your data center and examines how Azure Arc can operate cloud services on your hardware.

Options for operating hardware in your data center

Many companies operating their own hardware buy and install it themselves in the data center and then install the required software. Virtual machines or Kubernetes clusters are often used. This approach worked for many years, but it’s also time-consuming and costly.

Microsoft recognized this and has offered hardware solutions for several years to help support companies create a hybrid cloud architecture. There are several solutions depending on the company’s requirements (for example, if there’s an existing internet connection).

Azure Stack HCI is an operating system for an HCI cluster solution that can operate virtualized Windows and Linux servers and Azure Kubernetes Services (AKS). Figure 1 shows an Azure Stack HCI cluster’s with servers or AKS running Hyper-V and the Azure connection for server management.

Fig. 1: Azure Stack HCI server architecture

The cluster can contain 1 to 16 physical servers and doesn’t need an internet connection, apart from a monthly connection to Azure for billing costs. Azure Stack HCI is often used when there are regular internet connection interruptions, like on airplanes or cruise ships. This lets you install updates or deploy new applications during the stay in the (flight) port using the existing network connections. Guests can use all applications (such as payment terminals or entertainment systems) during the trip, even without an internet connection.

Azure Stack Hub is an extension of Azure. It offers companies a way to operate Azure services in their own data center. In contrast to Azure Stack HCI, Azure Stack Hub is usually used when there is no connection to Azure. Azure Stack Hub is often used by companies that want to use Azure services for IoT analytics or predictive maintenance, but don’t want to upload required data to the cloud. With Azure Stack Hub, the necessary Azure services can be installed locally. Companies can combine the advantages of the cloud with data security in their data center. However, it’s important to note that not all Azure services are available on Azure Stack Hub. You can find a detailed list of the available services on the Microsoft product overview page.

Figure 2 shows a comparison between Azure, Azure Stack Hub, and Azure Stack HCI. It illustrates that Azure Stack Hub runs on-premises and doesn’t offer all Azure services, like storage and network solutions.

Fig. 2: Comparison between Azure, Azure Stack Hub, and Azure Stack HCI

Azure Stack Edge offers four different types of hardware designed for operation in harsh environments like factories or outdoors. The devices can be configured as needed. For example, they can have a battery to bridge power outages or a graphics card used for m machine learning scenarios. The hardware isn’t purchased, but is rented from Microsoft as a HaaS (Hardware-a-Service) solution. The device can be configured from Azure and is mainly used for IoT solutions. You can also install an AKS cluster on an Azure Stack Edge device.

Setting up a hybrid cloud architecture is complex and requires a lot of planning. A more detailed list about all of Azure Stack HCI, Azure Stack Hub, and Azure Stack Edge’s possibilities is beyond the scope of this article. Interested readers are encouraged to to consult Microsoft’s documentation, which will hopefully clear up any ambiguities and provide decision-making aids for choosing the best solution.

Manage on-premises infrastructure with Azure

Azure Arc is probably the most powerful Azure service. It allows infrastructure operated outside of Azure to be managed with Azure. Outside of Azure means "on-premises", in your own data center or with other cloud providers like AWS or Google Cloud. Azure Arc lets you manage physical and virtual (like VMware or Azure Stack HCI) Linux and Windows servers and SQL servers and Kubernetes clusters. The advantage of using Azure Arc is administrators can manage infrastructure outside Azure using the same tools as infrastructure operated in Azure. For example, Azure's update and configuration management can be used to configure all servers (on-premises and in the cloud) with the same settings and roll out updates simultaneously.

You can also use Azure Arc ...