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
Compute
Azure NC RTX PRO 6000 Blackwell Server Edition v6 Series Virtual Machines
Azure NCv6-series Virtual Machines (VMs) are now Generally Available (GA) in the Southeast Asia and West US 2 regions. These VMs are powered by NVIDIA RTX PRO 6000 Blackwell Server Edition Graphics Processing Units (GPUs), with each GPU providing 96 GB of GDDR7 memory and the latest NVIDIA Blackwell architecture. This availability expands Azure’s accelerated computing portfolio for workloads that require high GPU performance, including Artificial Intelligence (AI), graphics-intensive applications, visualization, and advanced compute scenarios.
Confidential Live Migration for Intel TDX confidential VMs in Azure
Microsoft has announced Confidential Live Migration for Intel® Trust Domain Extensions (Intel TDX) confidential Virtual Machines (VMs) in Azure. This new capability is designed to improve operational flexibility and availability during platform servicing by helping move a confidential VM to updated infrastructure with minimal interruption, while preserving the confidentiality protections provided by Intel TDX-based virtual machines.
Azure Linux 4.0 for Azure Virtual Machines and VM Scale Sets (preview)
Azure Linux 4.0 for Azure Virtual Machines (VMs) and Virtual Machine Scale Sets (VMSS) is now available in Public Preview. Azure Linux 4.0 is intended for non-production use and testing, providing the next major version of Microsoft’s Linux distribution optimized for Azure workloads. This preview enables customers to validate compatibility and explore upcoming platform capabilities before production availability.
Storage
Premium SSD v2 disks now support non-zonal Azure Virtual Machines
Azure Premium SSD v2 disks now support non-zonal, single-instance Azure Virtual Machines (VMs) in selected Azure regions with Availability Zones (AZs). With this update, customers can deploy Premium SSD v2 with non-zonal virtual machines without selecting a specific Availability Zone, simplifying deployment scenarios while making Premium SSD v2 available to a broader set of VM configurations.
Azure Files assessments now available worldwide using Azure Migrate
Azure Migrate now generally supports discovery and assessment of SMB and NFS file shares hosted on Windows and Linux servers. This capability gives customers a data-driven view of their file share environment and supports migration planning for Azure Files by helping organizations assess existing on-premises file shares before moving them to Azure.
File share centric management model for Azure Files
The file share centric management model for Azure Files is now Generally Available (GA). This new model allows Azure Files file shares to be managed more directly and at scale as Azure resources through Microsoft.FileShares, simplifying the operational experience and enabling more scalable file share management in Azure environments.
Azure Local
Azure Local: from sovereign infrastructure to distributed edge
The announcements related to Azure Local presented over the past few weeks, also as part of Microsoft Build 2026, are numerous and clearly indicate the direction in which Microsoft is taking the platform. The underlying message is clear: Azure Local is evolving along two complementary paths. On one hand, it is becoming a platform for sovereign-scale infrastructure, designed for large regulated, distributed environments or scenarios with strict operational control requirements. On the other hand, it is expanding toward increasingly compact edge scenarios, down to single-node small form factor devices. In both cases, the goal remains the same: to maintain a consistent management experience based on the Azure portal, Azure CLI, Azure Resource Manager, and Azure APIs.
Before looking at the individual announcements, it is useful to clarify the main deployment models currently associated with Azure Local:
| Type | OS | Storage / compute | Scale | Status |
|---|---|---|---|---|
| Hyperconverged | Windows | Storage Spaces Direct | Up to 16 nodes | GA |
| Disaggregated | Windows | SAN storage, with compute and storage separated | Up to 64 nodes | GA |
| Multi-rack | Azure Linux | Pre-integrated racks with compute, SAN storage, and managed networking | Hundreds of servers | GA / controlled availability |
| Small form factor | Linux | Single node, Docker / K3s | Compact edge device | Preview |
The most interesting aspect, however, is not only the expansion of the infrastructure options. It is the fact that Azure Local is progressively becoming the local foundation on which Microsoft can bring more layers of its cloud and SaaS platform:
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Azure Local for infrastructure;
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Microsoft 365 Local for productivity and collaboration in private, hybrid, or disconnected environments;
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Foundry Local for AI workloads running locally;
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GitHub Enterprise Local for the DevOps lifecycle in sovereign and private cloud scenarios.
The significance is primarily practical: for the first time, these components can operate coherently within the same boundary controlled by the organization, maintaining a cloud-consistent operating model while reducing dependency on connectivity to external services when the scenario requires it.
Azure Local small form factor deployments for edge and Physical AI scenarios (preview)
Microsoft has introduced a new small form factor deployment type for Azure Local in Public Preview, designed for distributed edge environments where a traditional rack-based infrastructure footprint is not practical. This new deployment model targets scenarios such as retail stores, factories, branch offices, field locations, and remote industrial sites, where organizations need a compact, centrally managed device capable of running local data ingestion, Artificial Intelligence (AI) inference, and containerized workloads close to where data is generated.
Unlike traditional Azure Local hyperconverged or disaggregated deployments, this small form factor architecture is based on Linux rather than Windows and runs directly on bare metal without relying on virtualization. It is initially based on Azure Linux and supports container runtime options such as Docker, open-source K3s, and fully managed Azure Kubernetes Service (AKS). The model is single-node only and is optimized for lightweight, performance-oriented edge deployments.
A key element of this preview is the new Provisioned Machine resource type, which allows physical devices to be provisioned and managed from Azure in a way that resembles the management experience of an Azure virtual machine. These devices appear in the Azure portal, can be governed using Microsoft Entra ID, and support centralized lifecycle operations through Azure portal and APIs. Microsoft plans to extend this model with additional capabilities such as update management, metrics, security configuration, and configurable child resources for network interfaces and disks.
The provisioning experience is designed to simplify large-scale edge rollouts through a zero-touch approach: the operating system image is written to a USB drive, the device is started from that image, and after removing the USB drive, the remaining configuration and management are performed from Azure. This reduces the need for local IT tools and manual configuration, making it more practical to deploy and manage devices across hundreds or thousands of distributed locations.
Microsoft positions this deployment model under the broader Physical AI strategy. The small form factor devices are validated to run Foundry Local for local AI inference, Azure IoT Operations for device and sensor connectivity, and AKS on bare metal for containerized workloads at the edge. Validated hardware includes compact devices such as ASUS NUC 14 Pro, ASUS NUC 15 Pro, Lenovo ThinkEdge SE30, Lenovo ThinkEdge SE100, and OnLogic HX521. Together, these capabilities create a centrally managed edge platform for organizations that need to run IoT ingestion, local AI processing, and Kubernetes workloads directly where operational data is produced.
Foundry Local on Azure Local: multi-node deployments and vLLM support (preview)
Foundry Local on Azure Local is expanding in Public Preview with support for multi-node deployments, new local agents and tools, and an expanded model runtime offering that now includes vLLM-optimized models alongside existing ONNX-based options. This update is particularly relevant for sovereign, private, edge, and disconnected environments, where organizations need to run Artificial Intelligence (AI) inference locally, within customer-managed infrastructure and operational boundaries.
With multi-node support, Foundry Local can scale AI inference across multiple nodes in an Azure Local cluster instead of being limited to a single node. This enables organizations to support more demanding inference workloads, improve scalability, and build a stronger foundation for production AI scenarios running on infrastructure they own and control. At the same time, the addition of vLLM is significant because it broadens the range of models that can be deployed locally. While previous Foundry Local scenarios relied primarily on ONNX Runtime, which required models to be available or converted into ONNX format, vLLM enables deployment of large language models in formats commonly used by the open-source AI ecosystem, including models from Hugging Face, without requiring conversion.
Foundry Local also continues to provide a familiar catalog and API-driven deployment experience, allowing customers to explore, deploy, and operate proprietary and community models locally on Azure Local. The platform is designed to support governance, identity, and auditability while keeping execution, data, prompts, and model interactions inside the customer-controlled boundary. In addition, preview capabilities such as agentic retrieval, local agents and tools, and developer acceleration templates help organizations build AI systems that can reason, retrieve information, and take action using enterprise data without sending sensitive information outside the environment.
Combined with Azure Local, GPU-enabled hardware such as NVIDIA RTX PRO 6000 Blackwell Server Edition, the open NVIDIA Nemotron model family, and vLLM, Foundry Local provides a more complete on-premises AI inference stack for regulated and latency-sensitive environments. This enables organizations to run generative, predictive, and agentic AI workloads close to where data is created, whether in connected, intermittently connected, or fully disconnected scenarios, while maintaining consistent governance and operational control through Azure Arc.
Another important capability introduced in this preview is agentic retrieval with Foundry Local, which brings Retrieval-Augmented Generation (RAG) patterns into on-premises and sovereign environments. With this capability, AI models running on Azure Local can search and retrieve contextual information from local Microsoft 365 Local data sources, including SharePoint, OneDrive, and other Microsoft 365 content, without requiring data to leave the customer-controlled infrastructure. The retrieval layer uses the Model Context Protocol (MCP) to expose local RAG capabilities as tools that can be consumed by any MCP-compatible agent. This follows the same architectural pattern used by Foundry IQ in the cloud, but runs locally on the Azure Local cluster, enabling grounded, context-aware AI experiences while preserving data residency, operational control, and compliance boundaries.
Azure Kubernetes Service and Azure IoT Operations
Microsoft is extending additional Azure services to Azure Local, enabling organizations to run Kubernetes and industrial data workloads closer to where operational data is generated. Azure Kubernetes Service (AKS) can now run directly on bare metal without requiring a virtualization layer, while preserving the same enterprise-grade Kubernetes experience already available in Azure and on server-based environments. Once deployed, the AKS cluster is managed consistently with other AKS environments, including Azure-based Role-Based Access Control (RBAC), networking, upgrades, monitoring, and integrations such as AKS Fleet Manager. This allows organizations to extend familiar cloud-native controls and operational tooling from the cloud to distributed and industrial edge locations.
Azure IoT Operations is also supported for edge scenarios, providing a unified data and control plane for physical assets. The service includes connectors, an industrial-grade MQTT broker, and local agents and logic that can continue operating even with intermittent connectivity. This enables organizations to collect, process, and contextualize operational data locally, prepare it for Artificial Intelligence (AI) and analytics scenarios, and connect it to broader cloud services such as Microsoft Fabric Real-Time Intelligence. Azure IoT Operations also provides a no-code graphical interface to configure data flows and supports bidirectional communication with connected machines, enabling messages and commands to be sent back to physical assets.
Azure Kubernetes Fleet Manager support for Arc-enabled clusters
Azure Kubernetes Fleet Manager is expanding beyond Azure to support Arc-enabled Kubernetes clusters, enabling organizations to manage Kubernetes environments across Azure, Azure Local, and other Arc-connected infrastructures from a unified control plane. With this capability, AKS clusters on Azure Local and other Arc-enabled clusters can be organized and operated as part of a fleet, allowing administrators to apply updates, policies, and workload deployments consistently across the broader Kubernetes estate. This is especially useful for organizations running AKS on Azure Local across multiple sites, where managing clusters individually can quickly become operationally complex. By extending fleet management to Arc-enabled clusters, Microsoft provides a more scalable and consistent approach to governing distributed Kubernetes environments, improving operational efficiency across cloud, datacenter, edge, and hybrid scenarios.
GitHub Enterprise Local on Azure Local (preview)
GitHub Enterprise Local is now available in Public Preview, bringing GitHub’s enterprise developer platform into sovereign, private, disconnected, and air-gapped environments. The solution enables organizations to deploy GitHub Enterprise Server (GHES) as a prebuilt virtual machine on Azure Local, keeping source code, repositories, metadata, CI/CD workflows, build pipelines, and development artifacts entirely within customer-owned infrastructure and operational boundaries. This capability is designed for highly regulated sectors such as government, defense, financial services, critical infrastructure, and other environments where sovereignty, operational control, and resiliency are mandatory requirements.
GitHub Enterprise Local preserves a GitHub-consistent developer experience for source control, collaboration, pull requests, branch protection, code reviews, issues, wikis, GitHub Actions with self-hosted runners, and GitHub Packages for artifact management. It can run on single-node Azure Local deployments for preview, proof-of-concept, or low-risk scenarios, or on multi-node Azure Local clusters where the platform provides virtual machine-level high availability and failover for production-oriented deployments.
The solution is designed to operate without internet connectivity by default, while also supporting connected and restricted deployment models depending on customer requirements. In connected environments, organizations can benefit from centralized management and monitoring, while in disconnected environments the entire development platform can remain isolated inside the customer’s security and network perimeter. When combined with Foundry Local and GitHub Copilot, GitHub Enterprise Local also enables AI-assisted development workflows in sovereign environments, helping keep code context, prompts, model execution, and development assets within customer-controlled boundaries. Azure Local provides the underlying private cloud foundation, including virtualization, infrastructure availability, lifecycle operations, customer-controlled networking and security policies, and Azure Arc-enabled management, allowing organizations to modernize application development while maintaining compliance, auditability, and sovereignty requirements.
LAPS for Azure Arc: Local Admin Password Security across hybrid environments
Local Administrator Password Solution (LAPS) for Azure Arc extends Windows LAPS management to hybrid and multi-cloud environments by using Azure Policy and Machine Configuration to audit and enforce local administrator password settings at scale. This capability helps organizations reduce the risk associated with shared or manually managed local administrator credentials by ensuring that each machine uses a unique, randomly generated password that is rotated on a defined schedule and securely stored in Microsoft Entra ID or Active Directory. With Azure Arc, the same declarative policy model can be applied consistently across Azure virtual machines and Arc-enabled servers running on-premises, at the edge, or in other clouds. Administrators can start in audit-only mode to assess compliance across existing environments and then move to audit-and-configure mode to remediate non-compliant machines in controlled deployment rings. Default settings are aligned with common security guidance, including complex passwords, regular rotation, password expiration protection, and post-authentication actions such as password reset and user sign-out after use. This approach is particularly relevant for hybrid, sovereign, and regulated environments, where consistent enforcement, centralized compliance reporting, and audit-ready evidence are essential to reduce credential-related attack paths without replacing existing Windows LAPS deployments.
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.