Azure IaaS and Azure Local: announcements and updates (October 2026 – Weeks: 39 and 40)
This blog post series highlights the key announcements and major updates related to Azure Infrastructure as a Service (IaaS) and Azure Local, as officially released by Microsoft in the past two weeks.
Azure
General
Azure Arc-enabled SQL Server now available in Italy North
Azure Arc-enabled SQL Server is now available in the Italy North Azure region, allowing organizations to connect SQL Server instances to Azure Arc and manage them through Azure-based services while keeping the databases in their existing environments. This enables customers to use centralized inventory, governance, security, assessment, and license-management capabilities for SQL Server deployments from the Italy North region, helping organizations align hybrid SQL Server management with local regional requirements.
SQL Migration Agent Skills for assessment, migration, and validation
SQL Migration Agent Skills introduce reusable AI-powered capabilities designed to streamline the end-to-end migration journey from SQL Server to Azure. The skills maintain migration context across supported Microsoft experiences while assisting administrators through workload assessment, target selection, migration execution, and post-migration validation. They can analyze SQL Server environments to identify compatibility issues, risks, and potential migration blockers; recommend suitable destinations across Azure SQL Database, Azure SQL Managed Instance, and SQL Server on Azure Virtual Machines with sizing and suitability guidance; help automate migration workflows for supported Azure SQL scenarios; and provide post-cutover verification and remediation guidance. The objective is to reduce repetitive manual analysis while keeping customers in control of architectural and migration decisions.
Compute
Storage-optimized Lasv5 and Laosv5 Azure Virtual Machines
The Lasv5 and Laosv5 storage-optimized Azure Virtual Machine series are now Generally Available (GA), powered by 5th Generation AMD EPYC™ processors (Turin) and designed for distributed, scale-out workloads that require high local storage capacity and high-throughput data movement. VM sizes range from 2 to 160 vCPUs, with 8 GiB of memory and 720 GB of local NVMe capacity per vCPU, while both families support up to 200 Gbps of network bandwidth and deliver up to 35% higher average CPU performance. Lasv5 VMs provide up to 30.7 TB of local storage and 9.6 million read IOPS, while Laosv5 VMs scale to as much as 138 TB of local storage and 20.7 million read IOPS. Both series use Azure Boost and Azure Boost SSDs, enable local NVMe SSD encryption by default, and provide an NVMe interface for remote storage with Premium Storage caching support. Compared with Lasv4, Lasv5 increases maximum local storage capacity by 33% and temp-disk random read IOPS per vCPU by 9%, while adding new 128- and 160-vCPU sizes. Compared with Laosv4, Laosv5 delivers up to 500% more maximum local storage capacity and 619% higher maximum read IOPS, while introducing new 48-, 64-, 96-, 128-, and 160-vCPU sizes.
Storage
Azure NetApp Files large volume breakthrough mode
Large volume breakthrough mode for Azure NetApp Files provides an enhanced performance and scalability option for demanding high-performance computing (HPC) and electronic design automation (EDA) workloads. Breakthrough mode supports large volumes of up to 2 PiB and can deliver throughput of up to 80 GiB/s, depending on workload characteristics. Each breakthrough-mode large volume uses six storage endpoints, while the underlying storage systems are reserved for the individual customer to reduce resource contention and provide more predictable performance. This architecture combines very high-capacity scaling with multiple storage endpoints and dedicated capacity, making it suitable for large-scale, latency-sensitive workloads that require both substantial storage capacity and sustained throughput. The capability is supported in regions where the required dedicated capacity has been ordered and provisioned for the customer.
Microsoft Entra Kerberos authentication for Azure NetApp Files (preview)
Microsoft Entra Kerberos authentication for Azure NetApp Files SMB volumes is now available in Public Preview, enabling both hybrid and cloud-only identities to authenticate using Kerberos tickets issued through Microsoft Entra ID. The capability removes the requirement for SMB clients to maintain network line-of-sight to Active Directory Domain Services (AD DS) domain controllers as part of the authentication path. This can simplify identity and network architectures, reduce dependencies on traditional domain-controller connectivity, and provide a more cloud-oriented authentication model for organizations modernizing SMB-based workloads across hybrid and cloud environments.
Azure Local
SQL Server on Azure Local
SQL Server on Azure Local is now Generally Available (GA) for both connected and disconnected deployment scenarios, enabling organizations to run mission-critical database workloads on customer-owned infrastructure while maintaining greater control over connectivity, data location, and operations. In connected environments, SQL Server can run locally on Azure Local while Azure Arc provides Azure-based management and governance. For environments with restricted, intermittent, or unavailable external connectivity, Azure Local Disconnected Operations (ALDO) allows SQL Server workloads to continue operating locally without depending on public cloud connectivity.
The release is particularly relevant for sovereign, regulated, industrial, and edge scenarios where sensitive data must remain within defined operational boundaries. Customers can also place SQL Server alongside Foundry Local on Azure Local, enabling AI inference close to enterprise data and supporting scenarios where models, processing, and sensitive information need to remain within the local environment.
SQL Server licensing remains separate from the Azure Local infrastructure service. For connected deployments, customers can use eligible existing SQL Server licenses—including licenses with Software Assurance or qualifying subscriptions—or adopt pay-as-you-go licensing through Azure Arc. For fully disconnected deployments, eligible existing SQL Server licenses can be used through Azure Hybrid Benefit. This provides organizations with additional flexibility to modernize SQL Server estates across datacenter, edge, and sovereign environments while continuing to use qualifying licensing investments.
Conclusion
Over the past two weeks, Microsoft has introduced a slew of updates and announcements pertaining to Azure Infrastructure as a Service (IaaS) and Azure Local. These developments underscore the tech giant’s unwavering commitment to enhancing its cloud offerings and adapting to the ever-evolving needs of businesses and developers. Users of Azure can anticipate improved functionalities, streamlined services, and enriched features as a result of these changes. Stay tuned for more insights as I continue to monitor and report on Azure’s progression in the cloud sphere.