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
Networking
ICMP support for Azure StandardV2 NAT Gateway
Azure StandardV2 NAT Gateway now supports outbound Internet Control Message Protocol (ICMP) Echo Request and Echo Reply traffic. With this capability, customers can use tools such as ping from workloads behind a StandardV2 NAT Gateway to quickly validate outbound connectivity and troubleshoot network issues. ICMP support applies to both IPv4 and IPv6 traffic and is available for both existing and newly created StandardV2 SKU NAT Gateways, improving day-to-day network diagnostics for environments using the newer NAT Gateway SKU.
Application Gateway for Containers inference gateway (preview)
Application Gateway for Containers is extending its ingress gateway capabilities with a new inference gateway feature in Public Preview, bringing Kubernetes Gateway API Inference Extension support to Azure application delivery scenarios. This capability is designed for self-hosted generative Artificial Intelligence (AI) workloads on Azure Kubernetes Service (AKS), enabling load-aware and model-aware routing for Large Language Models (LLMs) and other inference workloads. Unlike traditional load balancing, the inference gateway can route requests based on model server signals, helping improve Time to First Token (TTFT), reduce timeouts under load, and improve Graphics Processing Unit (GPU) utilization. The preview introduces a managed Body-Based Router (BBR) that can inspect the request body, such as the model field in OpenAI-compatible APIs, to drive model-aware routing without requiring customers to deploy and operate a custom proxy tier. It also supports a bring-your-own Endpoint Picker (EPP) model, allowing organizations to choose the endpoint selection logic that best fits their workload and metrics requirements across an InferencePool. In addition, the inference gateway integrates with the existing Web Application Firewall (WAF) capabilities in Application Gateway for Containers, enabling OWASP-aligned protections to be applied to AI traffic before requests reach model servers.
Storage
Azure NetApp Files migration assistant
Azure NetApp Files migration assistant with SnapMirror is now Generally Available (GA), providing an efficient and cost-effective way to migrate data from on-premises environments, Cloud Volumes ONTAP (CVO), or other cloud providers to Azure NetApp Files (ANF). The capability uses ONTAP’s built-in replication engine to support seamless migration of business-critical applications and data to Azure, and it is available through both Azure portal and API experiences in all regions. The migration assistant helps reduce network transfer costs through storage-efficient data replication for both initial baseline transfers and incremental updates. It also supports low cutover and downtime windows by enabling faster final synchronization before migration completion, helping minimize disruption to customer operations. Volume migration includes source volume snapshots for primary data protection and preserves directory and file metadata, including security attributes, making it especially useful for enterprise file workloads that require continuity, consistency, and controlled migration execution.
Azure Local
Azure Local host service fee changes for hyperconverged, disaggregated, and disconnected deployments
Microsoft has updated the Azure Local host service fee model, moving from a single flat price to a tiered pricing structure based on the deployment architecture. Hyperconverged deployments with no external storage remain at the original price of $10 per physical core/month. However, disaggregated deployments, or hyperconverged deployments that use external storage, are now priced at $20.10 per physical core/month. Deployments with disconnected operations and a locally hosted control plane are placed in a separate pricing category, where customers are required to contact their Microsoft account representative.
This change is particularly relevant when designing Azure Local architectures, because the choice between a purely hyperconverged model, external SAN storage, or a disaggregated architecture now has a direct impact on licensing and operating costs. Another important consideration is Azure Hybrid Benefit (AHB): based on the published pricing note, customers with Windows Server Datacenter licenses and active Software Assurance can use Azure Hybrid Benefit to waive the Azure Local host service fee only for hyperconverged deployments with cloud-connected management and no external storage. This means that scenarios involving external storage, disaggregated deployments, or disconnected operations may not benefit from the same host service fee waiver.
As a result, the storage architecture decision becomes more than a technical choice. While SAN reuse and disaggregated designs can provide important benefits in terms of scalability, performance, and modernization of existing storage investments, they now need to be evaluated together with the higher per-core Azure Local service fee and the potential loss of Azure Hybrid Benefit coverage. For customers planning Azure Local projects, this makes it essential to model the total cost impact early in the design phase, especially for large clusters, multi-rack environments, sovereign deployments, or scenarios where external storage is being considered.
Azure Local: Features and improvements in 2606
Microsoft has released the June 2026 update for hyperconverged deployments of Azure Local, identified as version 12.2606.1003.205. This release includes general reliability improvements and bug fixes, together with updates to the underlying operating system and runtime components. In the 2606 release, all new and existing Azure Local deployments run the updated OS version 26100.32995, available for download from the Azure portal. Customers must also ensure that they use a driver compatible with OS version 26100.32995 or Windows Server 2025. For Integrated System or Premier solution hardware from the Azure Local Catalog, the OS remains preinstalled, and Microsoft recommends working with the Original Equipment Manufacturer (OEM) to obtain a compatible OS image and driver. This build also updates the runtime stack to .NET 8.0.28 and .NET 10.0.9 for both .NET Runtime and ASP.NET Core.
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.
