Azure Arc - Simply Explained
Azure Arc extends Azure's management, security, and governance capabilities beyond the Azure cloud, allowing you to manage servers, Kubernetes clusters, databases, and other resources running on-premises, at the edge, or in other cloud providers from a single control plane. Instead of moving workloads into Azure, Azure Arc brings Azure services to wherever your infrastructure already exists. In this episode of Microsoft Knowledge Nuggets, we explain Azure Arc in plain English and show why it's a key technology for hybrid and multicloud environments.
You'll learn how Azure Arc works, what it can manage, and why organizations use it to create a consistent operational model across Azure, AWS, Google Cloud, and on-premises datacenters. We cover key concepts including Arc-enabled servers, Kubernetes, Azure Policy, Azure Monitor, Microsoft Defender for Cloud, GitOps, and Infrastructure as Code. You'll also discover how Azure Arc projects non-Azure resources into Azure Resource Manager, enabling centralized management without migrating workloads.
The episode also explores real-world scenarios such as managing hybrid servers, governing Kubernetes clusters, deploying applications with GitOps, monitoring distributed environments, and applying consistent security and compliance policies across multiple platforms. You'll see how Azure Arc integrates with services like Azure Monitor, Microsoft Defender for Cloud, Azure Policy, and Azure Update Manager to simplify hybrid cloud operations.
Whether you're a cloud architect, Azure administrator, DevOps engineer, IT professional, or preparing for Azure certifications like AZ-104 or AZ-305, this episode provides a practical introduction without unnecessary complexity. By the end, you'll understand how Azure Arc enables organizations to man
In today's IT landscape, many organizations are adopting hybrid cloud strategies. Approximately 10% of companies are integrating this approach, with over 1,000 Microsoft customers already using Azure Arc to manage their hybrid environments. Azure Arc empowers you to extend Azure management capabilities across all infrastructures, simplifying your management processes.
This service addresses common challenges such as lack of centralized visibility, inconsistent security policies, and complex compliance requirements. With Azure Arc, you can unify your management and enhance operational efficiency in your hybrid cloud environment.
Key Takeaways
- Azure Arc enables unified management of resources across on-premises, edge, and multicloud environments.
- It simplifies governance by allowing consistent policy enforcement across all infrastructures.
- Azure Arc enhances security by integrating with Azure Security Center for centralized monitoring.
- You can manage both traditional VMs and modern containers seamlessly with Azure Arc.
- The service supports automation through Azure Resource Manager templates and APIs, improving operational efficiency.
- Azure Arc allows you to connect existing servers and Kubernetes clusters without needing to migrate resources.
- Flexible pricing models, including pay-as-you-go options, make Azure Arc cost-effective for organizations.
- Utilizing Azure Arc can lead to significant productivity gains and streamlined compliance reporting.
Azure Arc Overview

Azure Arc serves as a unified management plane that integrates resources from on-premises, edge, or other clouds into Azure Resource Manager. This integration allows you to manage your entire infrastructure seamlessly, regardless of where your resources reside. Azure Arc is particularly beneficial in hybrid and multicloud environments, where organizations often face challenges in visibility and control.
Key Features of Azure Arc
Azure Arc offers several features that set it apart from other hybrid cloud management solutions. Here are some of the core features:
| Feature | Azure Arc | Other Solutions |
|---|---|---|
| Workload Management | Supports both traditional VMs and modern containers | Limited to specific workloads |
| Automation | Utilizes ARM templates and Azure API for automation | Varies by provider |
| Compliance | Integrates with Azure Security Center for compliance | May not offer centralized compliance management |
| Resource Management | Centralized management of resources across clouds | Often requires proprietary hardware |
| Database Services | Managed data services from day one | Limited support for managed databases |
| Flexibility | Mix and match VMs, physical servers, and Kubernetes | Typically focused on one type of infrastructure |
With Azure Arc, you gain unified visibility, control, and security across your on-premises, edge, and multicloud environments without needing to migrate your resources. You can manage your resources as if they were native Azure resources, applying consistent policies and governance across all environments.
Here are some ways Azure Arc simplifies management:
- It allows you to onboard existing on-premises servers using lightweight agents, enabling management through Azure Resource Manager.
- You can register Kubernetes clusters with Azure Arc for policy enforcement and integration with Azure services.
- Azure Arc centralizes identity and access governance, reducing complexity and ensuring consistent security across all environments.
Managing Hybrid Resources with Azure Arc

Azure Arc simplifies the management of both on-premises and cloud resources, allowing you to connect and control your entire infrastructure from a single platform. This capability is crucial for organizations operating in hybrid environments, where resources may span multiple locations and platforms.
Azure Arc for Servers
With Azure Arc, you can manage your on-premises servers as if they were native Azure resources. This integration enhances visibility and governance across various environments, including physical servers and virtual machines. To connect your servers to Azure Arc, you need to meet certain technical requirements:
- Prerequisites: You must have an active Microsoft Azure subscription, on-premises servers with supported operating systems, and sufficient permissions.
- Supported Operating Systems: Azure Arc supports various versions of Windows and Linux, including:
- Windows Server (2008 R2 SP1 to 2022)
- Ubuntu (LTS versions 16.04 to 22.04)
- Red Hat Enterprise Linux (RHEL) (Versions 7 to 9)
- Other distributions like CentOS, Debian, and Oracle Linux.
- Network Requirements: Ensure outbound communication over TCP port 443, with options for proxy configuration.
To connect your servers, you must install the Azure Connected Machine Agent. This agent transforms your server into an Azure Arc-enabled server, integrating it into Azure's control plane. Once connected, you can manage your servers through a unified interface, applying consistent policies and governance across all environments.
Azure Arc enables you to project on-premises or multi-cloud servers into Azure. You can manage these servers similarly to native Azure virtual machines. This centralized management approach improves operational consistency and reduces configuration drift.
Azure Arc for Kubernetes
Azure Arc also extends its capabilities to Kubernetes clusters, allowing you to manage them alongside your other resources. Connecting your Kubernetes clusters to Azure Arc involves several steps:
- Prerequisites: Ensure you have an Azure account, the latest Azure CLI, necessary extensions, and an operational Kubernetes cluster.
- Create a Resource Group: Use the command
az group create --name AzureArcRes -l EastUS -o tableto create a resource group. - Connect to the Cluster: Use the command
az connectedk8s connect --name AzureArcTest1 --resource-group AzureArcResto attach your Kubernetes cluster to Azure Arc. - Verify Connected Clusters: Run
az connectedk8s list -g AzureArcRes -o tableto check the status of connected clusters. - Register Providers: Execute the commands to register necessary providers:
az provider register --namespace Microsoft.Kubernetesaz provider register --namespace Microsoft.KubernetesConfigurationaz provider register --namespace Microsoft.ExtendedLocation
Once connected, Azure Arc allows you to enforce policies uniformly across your Kubernetes clusters. You can extend Azure Policy to resources outside of Azure, ensuring compliance with security baselines and regulatory requirements. Azure Arc-enabled Kubernetes utilizes GitOps for configuration management, employing Flux to deploy application configurations from Git repositories. This approach allows you to define the desired state in a Git repository, ensuring that your clusters automatically converge to that state.
Azure Arc in a Multicloud Environment
Azure Arc simplifies management across various cloud providers, including AWS and Google Cloud. This service extends Azure’s management capabilities beyond its own cloud, allowing you to control resources from multiple environments through a single interface. With Azure Arc, you can manage servers, Kubernetes clusters, and applications as if they were native Azure resources. This integration streamlines your operations and enhances your governance capabilities.
Integration with Other Clouds
Azure Arc facilitates seamless integration with other cloud platforms. Here are some key aspects of this integration:
- Azure Arc projects Azure’s management framework onto resources in other clouds, such as AWS and Google Cloud.
- You can standardize governance and security without overhauling your existing infrastructure.
- Azure Arc enables multi-cloud registration, bringing resources from AWS or GCP under Azure oversight.
This unified management plane allows you to apply Azure policies and role-based access control (RBAC) across different cloud platforms. You gain consistent governance and security policies, which are crucial for maintaining compliance in a multicloud environment.
Benefits of Multicloud Management
Managing resources across multiple clouds offers several advantages. Here are some key benefits of using Azure Arc for multicloud management:
| Benefit | Description |
|---|---|
| Unified Management | Centralizes management for resources across on-premises, multi-cloud, and edge environments. |
| Consistent Security and Compliance | Enforces consistent security and compliance policies across all connected resources. |
| Enhanced Resource Governance | Provides centralized governance with the ability to apply policies and monitor compliance. |
| Scalability and Flexibility | Supports scalable deployments across hybrid and multi-cloud environments. |
| Improved DevOps Practices | Facilitates Kubernetes and containerized application management across distributed environments. |
| Cost Optimization | Offers tools for monitoring and optimizing resource costs across hybrid and multi-cloud environments. |
By leveraging Azure Arc, you can enhance your operational efficiency and reduce administrative overhead. The ability to manage diverse resources from a single platform simplifies your workflows and improves your overall IT strategy.
Pricing and Licensing for Azure Arc
Understanding the pricing and licensing structure for Azure Arc is essential for managing your costs effectively. Azure Arc employs a flexible pricing model that allows you to pay based on your usage. Here are some key points regarding the cost structure:
- Azure Stack HCI: Charges are based on the number of physical cores. This model provides clarity for on-premises resources.
- Arc-enabled services: Costs typically incur per resource or per feature. You need to track your usage carefully to manage expenses effectively.
Azure Arc offers various options for organizations looking to evaluate its capabilities without immediate financial commitment. Here are some available free tiers and trial options:
- Free Services: Azure provides over 65 services that are free for the first 12 months or always free up to certain limits. These services are beneficial for development, testing, and experimentation without incurring costs.
- Azure Free Tier: This tier includes a limited set of services available at no cost, which is useful for proof-of-concept work.
When comparing Azure Arc's pricing to similar hybrid cloud management solutions, you may find it advantageous. The following table outlines some differences:
| Feature | Azure Arc | AWS Outposts |
|---|---|---|
| Cost | Free for server management; pay for services consumed | Significant upfront investment; 3-year commitment ($200K-$1M+) |
| Approach | Software-based management of existing servers | AWS-owned hardware racks installed in your data center |
| Unique Features | Multi-cloud management (manage AWS and GCP resources) | Requires proprietary hardware and high capital costs |
This comparison highlights Azure Arc's flexibility and cost-effectiveness. You can manage your resources without the need for significant upfront investments. The pay-as-you-go licensing model allows you to scale your usage according to your needs.
Benefits of Using Azure Arc
Implementing Azure Arc brings numerous advantages to your organization. You can simplify governance and enhance security and compliance across your hybrid cloud environment. Here’s how Azure Arc can transform your management processes.
Simplified Governance
Azure Arc streamlines governance by providing a unified management plane for all your resources. This integration allows you to enforce consistent policies across your entire infrastructure, regardless of where your resources reside. Here are some key governance features:
| Governance Feature | Description |
|---|---|
| Consistent Policy Enforcement | Apply security, compliance, and operational policies regardless of where the resource lives. |
| Integration with Azure Policy | Enables consistent security and compliance policies across distributed resources. |
| Centralized Governance | Streamlines policy and compliance management across hybrid and multi-cloud environments. |
With Azure Arc, you can deploy agents on servers or Kubernetes clusters. This deployment enables governance controls like Azure Policy and role-based access across hybrid infrastructures. Consistency in governance enhances productivity and mitigates risks, which is crucial for compliance. Azure Security Center ensures compliance for all resources registered with Azure Arc, regardless of their deployment location.
Enhanced Security and Compliance
Security is a top priority for any organization. Azure Arc enhances your security posture by integrating with Azure Sentinel. This integration enables centralized security monitoring and automated incident response across hybrid and multicloud environments. Here are some security enhancements offered by Azure Arc:
- The Azure Connected Machine agent includes its own security controls that take precedence over cloud restrictions.
- It operates under local, system-managed identities, reducing credential exposure and avoiding dependency on domain infrastructure.
- The agent enforces a machine-scoped security boundary, minimizing unintended access to domain resources.
Additionally, Microsoft Defender for Cloud identifies weak spots in configurations. This proactive approach strengthens your security posture and helps meet compliance requirements across various platforms like Azure, AWS, and GCP. Continuous compliance tracking through automated monitoring ensures quick addressing of any compliance deviations.
By leveraging Azure Arc, you can achieve significant operational efficiency improvements. For instance, organizations report a 30% productivity increase due to a single interface for managing assets and improved automation. Furthermore, Azure Arc simplifies audit preparation and compliance reporting, saving time and effort.
Azure Arc plays a crucial role in modern IT management. It enables you to unify control over hybrid and multicloud environments, enhancing operational efficiency. By adopting Azure Arc, organizations like Rackspace have anticipated significant savings and improved service offerings.
Consider implementing Azure Arc to streamline your management processes. This solution allows you to leverage cloud capabilities while maintaining control over your on-premises resources. Embrace the future of IT management with Azure Arc for a more efficient and flexible infrastructure.
FAQ
What is Azure Arc?
Azure Arc is a service that extends Azure management capabilities to any infrastructure. It allows you to manage resources across on-premises, edge, and multicloud environments through a unified management plane.
How does Azure Arc enhance security?
Azure Arc integrates with Azure Security Center, enabling you to enforce consistent security policies across all your resources. This integration helps you maintain compliance and monitor vulnerabilities effectively.
Can I use Azure Arc for Kubernetes?
Yes, Azure Arc supports Kubernetes management. You can connect your Kubernetes clusters to Azure Arc, allowing you to enforce policies and manage configurations uniformly across your environments.
What are the pricing options for Azure Arc?
Azure Arc offers flexible pricing models, including pay-as-you-go licensing. You can choose between Azure Arc with BYOL (Bring Your Own License) or pay-as-you-go options based on your usage.
How does Azure Arc simplify management?
Azure Arc simplifies management by allowing you to manage all your resources from a single Azure portal. You can apply consistent governance and security policies across your entire infrastructure without needing to migrate resources.
Is there a trial option for Azure Arc?
Yes, Azure offers free services for the first 12 months, allowing you to explore Azure Arc's capabilities without incurring costs. This option is ideal for testing and development purposes.
What types of workloads can I manage with Azure Arc?
You can manage various workloads with Azure Arc, including virtual machines, physical servers, and Kubernetes clusters. This flexibility allows you to unify management across diverse environments.
How does Azure Arc support automation?
Azure Arc supports automation through Azure Resource Manager templates and Azure APIs. You can automate tasks like updates and policy enforcement, enhancing operational efficiency across your hybrid environment.
🎧 Listen to this episode
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- Understand the key concepts behind Azure Arc
- See how it fits into the wider Microsoft technology ecosystem
- Learn where it can create practical value for your organization
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Let's start with the problem.
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You've probably felt it even if you never had a name for it.
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Most companies today don't have one single place
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where everything lives.
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You've got servers in your own data center
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that once your predecessor set up 10 years ago
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that still run payroll.
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You've got virtual machines in Azure,
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maybe for a new application, your team built last year.
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You've got stuff running on Amazon Web Services
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because a department went rogue and spun up their own account.
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Maybe even some Google Cloud for a specific analytics job.
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Here's the thing.
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Each one of those environments has its own portal.
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Its own management tools, its own way of applying policies,
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its own security dashboard, its own patching schedule.
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So what does that mean for you?
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Your team ends up jumping between four different consoles
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just to see what you have let alone manage it.
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Security policies get applied unevenly
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because nobody remembers to check every environment.
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Patches slip through the cracks
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because one environment uses a different update tool
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than the others.
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And when something breaks, you're digging through multiple log
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sources trying to piece together what happened.
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This fragmentation creates blind spots
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and blind spots create risk.
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You don't know if every server has the latest security patch.
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You don't know if a configuration drifted
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on that one machine running in AWS.
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You don't even know how many servers you actually have
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across all these environments.
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The pain is real.
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Managing a hybrid or multi-cloud world
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without a single control plane
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leads to wasted time, security gaps,
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and operational inefficiency.
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You're spending more time switching tools
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than actually managing your infrastructure.
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But what if you could bring all those environments together
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under one roof?
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What Azure Arc actually is, the bridge.
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That's where Azure Arc comes in.
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Let me be clear about what it is right from the start.
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Azure Arc is not a cloud.
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It doesn't replace your data center.
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It doesn't migrate your servers anywhere.
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Think of it as a bridge.
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A connection between the servers you already have
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and Azure's management tools.
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Here's how it works.
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Azure Arc projects any machine running outside Azure
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into Azure Resource Manager.
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That's the engine that powers everything in Azure.
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Every virtual machine, every database,
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every resource you see in the portal
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has a record in Azure Resource Manager.
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With Arc, a server sitting in your basement,
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a virtual machine running on AWS,
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or a Kubernetes cluster at the edge
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all get their own Azure Resource ID.
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They show up in the portal just like native Azure resources.
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And once they're there, you can do things with them.
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You can apply Azure Policy to enforce security settings.
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You can use Azure Monitor to collect performance data and logs.
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You can enable Microsoft Defender for Cloud
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to scan for vulnerabilities and detect threats.
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All on servers that aren't running in Azure.
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The core idea is simple.
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You don't need to migrate anything
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to get Azure's management capabilities.
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You don't move your workloads.
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You don't re-architect your applications.
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You just connect what you already have
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to Azure's management plane.
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This works with Windows Server.
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It works with Linux.
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It works with Kubernetes clusters running anywhere.
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It works with SQL Server instances.
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It even works with Azure Data Services
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that you can run on your own hardware.
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So whether your server is in a data center,
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a remote branch office, an AWS region,
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or a Google Cloud Zone,
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Arc brings it into the same management experience.
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That's the simplest definition.
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Azure Arc brings Azure's management plane
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to where your servers already live.
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So how does this bridge actually work?
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It starts with a small piece of software.
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The secret source, the connected machine agent.
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So what exactly is the Azure connected machine agent?
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It's a lightweight piece of software
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you install on each server you want to manage through Arc.
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Once installed, the agent connects outbound
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to Azure over HTTPS on port 443,
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the same port your browser uses.
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So you don't need to open inbound ports or set up a VPN.
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The server reaches out to Azure, not the other way around,
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which means better security
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without punching holes in your firewall.
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Once that connection is made, your server,
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whether it's in your data center or running on AWS,
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appears in the Azure portal as a full Azure resource.
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It gets a resource ID, a region assignment,
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and a resource group just like any Azure VM.
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You can tag it, apply policies, monitor it, and manage it.
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Here's the best part.
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The agent is free.
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Connecting a server to Azure Arc costs nothing.
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You only pay for the services you enable on top,
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like Microsoft Defender for Cloud,
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Azure Update Manager, or Azure Monitor.
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So your bill only covers what you actually use.
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What does the agent actually do?
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It keeps the communication channel with Azure open.
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It handles extensions.
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Think of those as add-ons for monitoring or security scanning.
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And it sends inventory data back
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so you always know what's running on that machine.
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Installation is straightforward.
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In the Azure portal, navigate to Azure Arc,
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select servers, and generate an onboarding script,
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PowerShell for Windows, or Shell for Linux.
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Run it on the target machine with admin rights,
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authenticate to Azure, and within minutes,
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the server appears in your portal.
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All you need is admin rights and internet access.
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Once connected, you manage it just like any Azure VM.
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Install extensions, run scripts, apply policies,
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monitor performance, the experience is identical.
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With the agent in place, you unlock capabilities
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that change how you manage that server.
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Let's start with governance.
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What arc unlocks?
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Governance at scale.
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So you've connected a server to Arc.
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Now what?
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The first thing you'll notice is that you can apply
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Azure policy to it.
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The same policy engine that governs Azure resources
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now extends to your on-prem or AWS servers.
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In practice, you enforce compliance rules
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across your entire fleet, no matter where machines live.
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Need every server to have a specific security setting,
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write a policy, assign it to your Arc enabled servers,
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and Azure continuously checks compliance.
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If a server drift, you get an alert.
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You can even set up automatic remediation
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in some cases, tagging is another piece.
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You already tag Azure resources
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with environment, cost center, and owner tags.
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With Arc, you tag hybrid servers the same way.
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So that machine in your basement gets the same tags
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as your Azure VMs, making cost tracking, ownership,
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and environment separation consistent across your whole estate.
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Next up is access control.
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Azure RBAC lets you define who can do what
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on your on-prem servers through the Azure portal.
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Give your junior admin read only access
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to see inventory without making changes
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and let your security team run vulnerability scans
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without full admin access, or control from Azure,
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not from local policies on each server.
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Azure machine configuration goes further.
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It audits and sets OS level settings
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across your entire fleet from one place.
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Want Bitlocker enabled on every Windows server?
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Write a policy that checks and reports compliance.
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Need a specific registry key set correctly
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on all your Linux machines?
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Same thing.
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Define the desired state once, and Azure evaluates
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every Arc enabled server against it.
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Let me give you a concrete example.
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Say you have servers spread across three data centers,
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two cloud providers, and a dozen remote retail locations.
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You want to enforce a security baseline?
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Encryption enabled, certain ports closed,
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a specific antivirus installed.
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Without Arc, you'd check each environment
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with different tools.
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With Arc, you write one policy, assign it to the relevant scope,
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and Azure shows you which servers are compliant
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and which aren't, all in a single dashboard.
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That's governance at scale.
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One set of rules, one view of compliance,
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no matter where your servers live.
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Once you have that governance layer in place,
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the next thing to tackle is security,
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because threats don't care where your server runs.
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What Arc unlocks?
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Security and monitoring.
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Here's where Arc really shows its value, security.
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The hard truth is, a vulnerability sitting
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on a server in your data center is just as dangerous
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as one running in Azure.
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But without Arc, you're probably handling those
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with different tools, different processes,
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maybe even different teams.
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That changes now.
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With Arc, Microsoft Defender for Cloud extends
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to your hybrid servers.
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So the same vulnerability assessments,
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threat detection, and security recommendations
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you already get for Azure VMs, now applied to machines
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running on-prem, on AWS, or at the edge.
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Defender scans your entire hybrid fleet
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for missing patches, weak configurations,
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and suspicious activity.
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Then surfaces everything in the dashboard
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you already use for Azure resources.
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No more juggling separate tools.
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What about incident response?
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Microsoft Sentinel can pull logs from Arc machines too.
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So if Sentinel is your security information
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and event management tool,
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you get one unified security dashboard
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for every environment.
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No more jumping between different log sources,
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trying to piece together what happened.
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All your security data from all your servers lands in one place.
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Then there's monitoring.
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Azure Monitor collects performance metrics, logs,
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and alerts from hybrid machines,
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just like it does from native Azure VMs.
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Set up a log analytics workspace,
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configure your data collection rules,
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and start seeing CPU, memory, disk, and network data
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from every Arc enabled server.
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Want to know if a server's CPU stays above 90%
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for more than 15 minutes?
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You create an alert,
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and that alert fires whether that server lives in Azure,
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your data center, or in AWS region.
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VM Insights gives you real-time visibility
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into CPU, memory, and disk usage across your entire fleet.
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You can open a map of your servers,
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spot which ones are running hot,
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and drill into performance details
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without leaving the Azure portal.
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And this works for servers on-prem in AWS
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anywhere they happen to be.
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One more piece, extended security updates.
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Running an out-of-support version
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like SQL Server 2012 or Windows Server 2012,
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before you have to migrate those workloads
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to Azure to keep getting security patches.
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With Arc, you get those patches on-prem,
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no migration required.
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The updates come through the Arc channel,
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keeping your legacy system secure while you plan your next move.
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And here's a key point.
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You don't need a VPN or a bastion host to get remote visibility.
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All that monitoring data flows through the Arc agent
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secure outbound channel,
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no inbound ports, no complex networking,
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just the agent talking to Azure over HTPS.
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So you can see your servers monitor them and keep them secure,
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but what happens when you actually need to fix something
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or install an update?
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What Arc unlocks?
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Updates and remote management.
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You can see your servers, monitor them, and enforce policies.
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But eventually you need to do things,
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install updates, run scripts, troubleshoot issues.
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Arc handles that too.
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Azure Update Manager lets you schedule patching across
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all your Arc machines from a single dashboard.
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See which servers need updates,
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create a maintenance window and deploy patches,
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and it's not just Arc machines.
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You can include Azure VMs and even AWS EC2 instances
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in the same schedule.
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One dashboard, one patching rhythm,
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no matter where the server lives.
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Need to run a script on a remote machine.
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The custom script extension works on Arc servers
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just like it does on Azure VMs.
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Upload a PowerShell or Bash script,
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pick which servers to target
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and Azure executes it through the Arc agent.
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No RDP, no SSH into each machine individually.
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You can run the same script across hundreds of servers
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with a few clicks.
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Windows Admin Center in Azure gives you
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browser-based management for Arc servers.
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Open a console, view event logs, manage services,
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work with files, all through the Azure portal
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without a VPN or a public IP on the target server.
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The connection goes through the Arc agent's secure channel.
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That's a game changer for servers in remote locations
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or locked down environments
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where opening remote access ports isn't an option.
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Remote support provides just in time access
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with full audit logging.
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When you need to troubleshoot a problem,
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you grant temporary access through Arc.
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The session gets logged, everything that happens is recorded
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and when you're done, the access is revoked,
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no standing admin accounts, no permanent remote access paths.
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And as your automation runbooks can automate workflows
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across your hybrid environment, onboarding new servers,
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fixing configuration drift, responding to alerts.
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You write a runbook once
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and it runs across all your Arc enabled machines.
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So now you've got governance, security, monitoring,
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updates and remote management,
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all from one place for servers that aren't even in Azure.
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That's the core of what Arc delivers.
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Beyond servers, Kubernetes, SQL Server and data.
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So far, we've been talking about individual servers,
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your physical or virtual machines,
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but Arc doesn't stop there.
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It extends to Kubernetes clusters, SQL Server instances
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and even data services.
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Let's start with Kubernetes.
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If you're running Kubernetes on premises,
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on AWS, EKS or at the edge, Azure Arc projects
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those clusters into Azure resource manager,
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so they show up in the portal right alongside your other resources.
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You see all your clusters in one inventory, no matter where they run.
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Once the cluster is connected,
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you can use GitOps with Flux to define your cluster's desired state
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in a Git repository and Flux continuously
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reconciles the cluster to match it.
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Deployments, configurations, namespace settings,
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all managed through code and consistent across every environment.
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Plus, you get performance monitoring through Azure Monitor
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for containers or from the same dashboard
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you use for everything else.
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For SQL Server, Arc brings a whole new set of capabilities.
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Best practice assessments run automatically
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to evaluate your SQL instances for configuration issues,
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performance problems and security gaps
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while vulnerability scanning identifies potential weaknesses.
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And you get pay as you go licensing,
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paying per core per hour through your Azure subscription,
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even though the instance runs on your own hardware.
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Arc enabled SQL managed instance is where things get really interesting.
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It lets you run a fully managed SQL instance
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on your own infrastructure
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with the same engine as Azure SQL managed instance,
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including automatic updates, built in higher availability
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and elastic scaling.
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But it runs on your hardware in your data center,
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perfect for workloads that can't move to the cloud yet
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due to latency, regulation or legacy dependencies,
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but still need modern management.
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Migration assessments run automatically every seven days,
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evaluating your SQL databases and telling you
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what's ready to move to Azure,
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whether the right target is Azure SQL database,
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SQL managed instance or a SQL VM.
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And what blockers you need to address.
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This runs continuously so you always know where you stand.
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And for SQL Server 2012 and older,
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Arc delivers extended security updates
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without requiring you to migrate to Azure.
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The security patches come through the Arc channel
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to keep your legacy systems protected
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while you plan your next steps.
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This is where Arc becomes more than a management tool.
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You get cloud-like management and security
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on your existing infrastructure
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with a clear path to migration when you're ready.
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The multi-cloud reality, managing AWS and GCP.
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What about when your servers live inside another cloud entirely?
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Arc has an answer for that too.
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The multi-cloud connector for AWS is a resource
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you create an Azure that connects to your AWS environment,
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discovers EC2 instances, S3 buckets, and over 125 resource types,
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and replicates them all into Azure resource manager.
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So you see AWS resources alongside your Azure resources
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in the portal across Azure resource graph queries
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and in your dashboards.
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The connector can automatically install the Arc agent
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on discovered EC2 instances
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so you don't have to manually onboard each one.
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It identifies your AWS servers,
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installs the agent and brings them under Azure management.
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And when new instances spin up in AWS,
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they're automatically discovered and onboarded.
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For Google Cloud Platform,
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a similar connector brings inventory visibility
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and management capabilities.
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You provide your GCP project details
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and the connector discovers resources
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and makes them visible in Azure.
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Once these machines are connected,
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you can run Azure Policy and Azure Update Manager across them.
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The same policies you apply to your Azure VMs
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and on-prem servers now apply to machines running in AWS
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and GCP with the same update schedules
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and the same compliance reporting or from one place.
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This gives you a single pane of glass
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for all servers regardless of provider.
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You stop thinking about my Azure servers and my AWS servers
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and start thinking about simply my servers.
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The location becomes a property of the resource,
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not a separate management domain.
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What Arc is not?
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Clearing up confusion.
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Now that you've seen what Arc can do,
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let's clear up a few common myths.
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Here's what Arc is not.
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Myth number one is Azure Arc a Cloud?
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No.
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It doesn't give you compute storage or networking.
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It doesn't run your applications.
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Think of it as a management layer.
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00:14:22,400 --> 00:14:24,080
It connects your existing infrastructure
414
00:14:24,080 --> 00:14:25,320
to Azure's management tools.
415
00:14:25,320 --> 00:14:26,840
Your workloads stay where they are.
416
00:14:26,840 --> 00:14:28,760
Arc just gives you a better way to manage them.
417
00:14:28,760 --> 00:14:31,120
Imagine you have a building with its own security system.
418
00:14:31,120 --> 00:14:32,440
Arc doesn't move the building.
419
00:14:32,440 --> 00:14:33,840
It just installs a new smart lock
420
00:14:33,840 --> 00:14:35,720
you can control from anywhere.
421
00:14:35,720 --> 00:14:38,320
Myth number two, does Arc migrate your servers?
422
00:14:38,320 --> 00:14:39,160
Not at all.
423
00:14:39,160 --> 00:14:40,120
Nothing moves.
424
00:14:40,120 --> 00:14:42,120
The machine stays right where it is.
425
00:14:42,120 --> 00:14:45,320
In your data center on AWS or wherever you run it,
426
00:14:45,320 --> 00:14:48,080
Arc creates a pointer in Azure resource manager, not a copy.
427
00:14:48,080 --> 00:14:50,080
Think of it as a bookmark instead of a photocopied.
428
00:14:50,080 --> 00:14:52,920
The actual workload never leaves its original location.
429
00:14:52,920 --> 00:14:55,760
Myth number three, do you need Arc on a VM that's already in Azure?
430
00:14:55,760 --> 00:14:56,600
No.
431
00:14:56,600 --> 00:14:59,200
Native Azure VMs already have the Azure VM agent built in.
432
00:14:59,200 --> 00:15:01,480
That agent gives you the same management capabilities.
433
00:15:01,480 --> 00:15:03,280
Arc is only for machines outside Azure.
434
00:15:03,280 --> 00:15:06,600
If your VM is already in Azure, you're already set.
435
00:15:06,600 --> 00:15:10,080
Myth number four is Arc a replacement for your current tools?
436
00:15:10,080 --> 00:15:10,720
No.
437
00:15:10,720 --> 00:15:13,680
It adds Azure's capabilities on top of what you already have.
438
00:15:13,680 --> 00:15:16,600
You can keep using System Center, Configuration Manager,
439
00:15:16,600 --> 00:15:18,280
or whatever tools you've invested in,
440
00:15:18,280 --> 00:15:19,800
Arc complements those tools.
441
00:15:19,800 --> 00:15:21,960
It adds a new layer of cloud-based governance
442
00:15:21,960 --> 00:15:25,960
and security that your existing tools might not offer.
443
00:15:25,960 --> 00:15:27,920
Myth number five, what about the agent?
444
00:15:27,920 --> 00:15:28,600
Is it heavy?
445
00:15:28,600 --> 00:15:29,880
No, it's lightweight.
446
00:15:29,880 --> 00:15:32,520
Uses minimal CPU and memory, and it's free.
447
00:15:32,520 --> 00:15:34,760
The cost comes from the services you enable on top,
448
00:15:34,760 --> 00:15:36,760
like Defender for Cloud or Azure Monitor,
449
00:15:36,760 --> 00:15:38,800
connecting a server costs nothing.
450
00:15:38,800 --> 00:15:41,200
Zero, Zilch.
451
00:15:41,200 --> 00:15:44,080
Myth number six is Arc only for servers?
452
00:15:44,080 --> 00:15:46,680
No, it works with Kubernetes, SQL Server,
453
00:15:46,680 --> 00:15:48,160
data services, and more.
454
00:15:48,160 --> 00:15:50,240
It's a platform that extends as your management
455
00:15:50,240 --> 00:15:53,320
to any resource type anywhere you have it running.
456
00:15:53,320 --> 00:15:55,120
The big picture, one control plane.
457
00:15:55,120 --> 00:15:56,680
So what does all of this add up to?
458
00:15:56,680 --> 00:15:59,000
Here's the thing, the real value of Azure Arc
459
00:15:59,000 --> 00:16:00,280
isn't any single feature.
460
00:16:00,280 --> 00:16:02,920
It's integration, not the agent, not the policies,
461
00:16:02,920 --> 00:16:04,040
not the monitoring.
462
00:16:04,040 --> 00:16:05,920
It's how all these pieces work together
463
00:16:05,920 --> 00:16:07,680
to give you one consistent way
464
00:16:07,680 --> 00:16:09,720
to manage every server you own.
465
00:16:09,720 --> 00:16:11,160
Now imagine your day to day.
466
00:16:11,160 --> 00:16:13,440
You stop jumping between four different portals.
467
00:16:13,440 --> 00:16:15,160
You stop worrying if a policy was applied
468
00:16:15,160 --> 00:16:17,400
to that one server running in AWS.
469
00:16:17,400 --> 00:16:18,880
You stop searching through different tools
470
00:16:18,880 --> 00:16:19,960
for the information you need.
471
00:16:19,960 --> 00:16:22,720
Instead, you have one place to govern, one to monitor,
472
00:16:22,720 --> 00:16:24,760
one to secure, one to patch.
473
00:16:24,760 --> 00:16:27,160
Your entire server estate, no matter where it lives,
474
00:16:27,160 --> 00:16:28,800
managed through a single control plane.
475
00:16:28,800 --> 00:16:30,080
That's the magic of it.
476
00:16:30,080 --> 00:16:32,120
And getting started is easier than you think.
477
00:16:32,120 --> 00:16:34,360
The hardest part only takes about 10 minutes.
478
00:16:34,360 --> 00:16:36,200
First, register the resource providers
479
00:16:36,200 --> 00:16:37,560
in your Azure subscription,
480
00:16:37,560 --> 00:16:39,400
then install the agent on one server.
481
00:16:39,400 --> 00:16:40,880
Watch it appear in the portal
482
00:16:40,880 --> 00:16:43,120
from there you add capabilities one at a time.
483
00:16:43,120 --> 00:16:45,440
Enable Azure policy, turn on Defender for Cloud,
484
00:16:45,440 --> 00:16:47,080
set up update manager.
485
00:16:47,080 --> 00:16:48,400
Each step builds on the last.
486
00:16:48,400 --> 00:16:50,080
You don't have to do everything at once.
487
00:16:50,080 --> 00:16:52,080
Start small and grow from there.
488
00:16:52,080 --> 00:16:52,960
Start simple.
489
00:16:52,960 --> 00:16:55,480
Head to the Azure portal, find Azure Arc,
490
00:16:55,480 --> 00:16:57,520
pick servers and hit create.
491
00:16:57,520 --> 00:16:59,360
Choose your subscription and resource group,
492
00:16:59,360 --> 00:17:00,840
generate the onboarding script
493
00:17:00,840 --> 00:17:02,320
and run it on a test machine.
494
00:17:02,320 --> 00:17:03,960
About 10 minutes later, you'll see a server
495
00:17:03,960 --> 00:17:05,920
that isn't inside Azure sitting right there
496
00:17:05,920 --> 00:17:07,840
in your portal ready to manage.
497
00:17:07,840 --> 00:17:10,040
That one experiment teaches you more about what Arc
498
00:17:10,040 --> 00:17:12,080
actually does than anything I can explain here.
499
00:17:12,080 --> 00:17:14,520
Subscribe to the show for more knowledge nuggets like this.
500
00:17:14,520 --> 00:17:17,480
Every week we break down Microsoft's platform in plain English
501
00:17:17,480 --> 00:17:18,920
and drop a comment with your biggest question
502
00:17:18,920 --> 00:17:20,800
about hybrid or multi-cloud management.
503
00:17:20,800 --> 00:17:22,040
I read every single one.
Founder of m365.fm, m365.show and m365con.net
Mirko Peters is a Microsoft 365 expert, content creator, and founder of m365.fm, a platform dedicated to sharing practical insights on modern workplace technologies. His work focuses on Microsoft 365 governance, security, collaboration, and real-world implementation strategies.
Through his podcast and written content, Mirko provides hands-on guidance for IT professionals, architects, and business leaders navigating the complexities of Microsoft 365. He is known for translating complex topics into clear, actionable advice, often highlighting common mistakes and overlooked risks in real-world environments.
With a strong emphasis on community contribution and knowledge sharing, Mirko is actively building a platform that connects experts, shares experiences, and helps organizations get the most out of their Microsoft 365 investments.
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