Azure Local—Microsoft’s hybrid cloud platform, encompassing solutions like Azure Stack Hub, Azure Stack HCI, and Azure Arc—promises to bring the power of Azure to your on-premises datacenter. But too often, organizations watch their expensive Azure Local hardware gather dust in boxes, burning through warranties while project delays mount. Why? Because they treat Azure Local like a glorified Windows Server instead of the sophisticated hybrid cloud platform it is.
Drawing on insights from Dino Bordonaro, a Microsoft MVP and Senior Cloud Architect with over 25 years of hybrid infrastructure experience, we explore the seven critical mistakes that turn Azure Local investments into costly inventory—and how to avoid them to ensure your deployment delivers real business value.
Mistake #0: Treating Azure Local Like “Fancy Windows Server”
The biggest blunder is approaching Azure Local as a simple server upgrade. It’s not. Azure Local is a hybrid cloud platform that extends your Azure tenant to on-premises infrastructure, requiring expertise in Azure Arc, hybrid networking, and cloud governance.
The Cost: Misaligned expectations lead to months of delays, integration challenges, and even project cancellation.
How to Avoid It:
Partner with experts who have proven Azure Local experience, not just Hyper-V migration skills.
Request customer references for real Azure Local deployments.
Ensure your partner understands hybrid cloud strategy, including Azure Arc services.
Coordinate across Active Directory, networking, Entra ID, and permissions teams from day one.
Mistake #1: Obsessing Over Hardware Specs Instead of Planning
Focusing on the fastest CPUs or premium storage is a recipe for failure. Success with Azure Local hinges on meticulous planning, not hardware horsepower.
The Cost: Perfectly spec’d hardware sits unused because teams didn’t align on prerequisites or timelines.
How to Avoid It:
Establish clear project ownership across all technical domains.
Document prerequisites for Active Directory, networking, and Azure tenant configuration.
Align stakeholders on the hybrid cloud strategy, not just infrastructure refresh.
Set realistic timelines that account for cross-team coordination.
Mistake #2: Sizing Without Understanding Your IT Lifecycle
Many organizations size their Azure Local platform based on current VM allocations, not actual usage, leading to over-provisioning and wasted resources.
The Cost: Oversized deployments inflate costs, while undersized ones fail to meet future needs.
How to Avoid It:
Use tools like Azure Migrate to assess real CPU, memory, and storage usage over 6-12 months.
Plan for modern application architectures and Azure Arc services.
Consolidate workloads to reduce footprint and align sizing with business growth projections.
Define your current vs. future operating model to maximize project value.
Mistake #3: Choosing Use Cases Without Strategic Thinking
Unclear or misaligned use cases can derail Azure Local deployments, turning them into expensive islands instead of cloud extensions.
The Cost: Misjudging data sovereignty, connectivity, or production needs leads to complexity and operational overhead.
How to Avoid It:
Validate data sovereignty requirements—many regulations are more flexible than assumed.
Assess WAN bandwidth and stability for hybrid operations.
Re-evaluate disconnected operations; resilient connectivity is often more practical than air-gapped setups.
Use certified integrated systems from the Azure Local Hardware Compatibility List for production deployments.
Mistake #4: Ignoring Azure Local’s Unique Networking Needs
Network planning is critical, yet many organizations fail to use compatible hardware or account for Azure Local’s specific requirements.
The Cost: Poor network planning leads to unstable operations, costly troubleshooting, and production failures.
How to Avoid It:
Use hardware from the Azure Local Hardware Compatibility List, ensuring support for RoCE or iWarp.
Meet minimum network speeds (e.g., 10GBit for storage adapters) and plan for higher throughput.
Implement network segmentation for security, especially in OT/IT mixed-mode environments.
Validate RDMA functionality and plan for east-west traffic, redundancy, and sufficient bandwidth.
Mistake #5: Treating Governance and Security as Afterthoughts
Azure Local integrates with your Azure tenant, demanding robust security and governance from the start.
The Cost: Security misconfigurations delay deployments for months and create compliance risks.
How to Avoid It:
Use Entra ID to extend cloud-native security to your hybrid infrastructure.
Restrict management layer access using Conditional Access, Privileged Identity Management, and privileged workstations.
Follow Azure Local documentation for Active Directory integration, especially deactivating rights inheritance for the OU.
Assign least-privilege roles for deployment accounts to minimize risks.
Coordinate security across Active Directory, Entra ID, networking, and compliance teams.
Mistake #6: Underestimating Connectivity Needs
Azure Local’s cloud-first nature requires reliable WAN connectivity to Azure, yet many organizations assume premium options like ExpressRoute eliminate standard internet needs.
The Cost: Connectivity failures disrupt local operations and cloud integration.
How to Avoid It:
Ensure sufficient bandwidth for management, monitoring, Azure Arc, backup, and user access traffic.
Install redundant WAN connections with automatic failover for high availability.
Plan for standard internet access, as ExpressRoute and MAPS aren’t fully supported.
Mistake #7: Neglecting Backup and Disaster Recovery Planning
Azure Local’s unique architecture demands compatible backup solutions and rigorous DR testing.
The Cost: Incompatible backups or untested DR plans lead to data loss and operational gaps.
How to Avoid It:
Use compatible backup solutions (e.g., Microsoft, Commvault, Veeam) and size nodes for full workload capacity.
Ensure network speed supports backup time windows and test restores regularly for accurate RTO.
Integrate Azure Site Recovery for DR, testing both failover and failback procedures.
Follow the 3-2-1 rule: three data copies, two local, one offsite in cold storage for ransomware protection.
The Path to Azure Local Success
Azure Local is a game-changer for hybrid cloud adoption, but only if you treat it as a strategic platform, not upgraded hardware. By avoiding these seven mistakes, you can transform your datacenter into a dynamic, cloud-connected powerhouse. The keys to success are:
Starting with a hybrid cloud strategy.
Coordinating across technical domains from day one.
Partnering with Azure Local experts like Dino Bordonaro, whose 25+ years of experience help organizations avoid costly pitfalls.
Planning extensively before purchasing hardware.
Testing everything before production.
Don’t let your Azure Local investment become datacenter decoration. With the right planning and expertise, you can unlock its full potential and drive measurable business outcomes. Ready to get started? Connect with a Microsoft Azure expert or visit BORDONARO IT to ensure your deployment succeeds from day one.
Content derived from Why Expensive Azure Local Hardware Becomes Datacenter Decoration (7 Mistakes That Turn Investment Into Inventory) | LinkedIn