Hey folks! Recently, Microsoft announced some exciting options like "Azure Local" and "Microsoft 365 Local". I'm familiar with Microsoft 365 from my work, but my knowledge about data centers and Azure is pretty limited. I'm hoping someone can break down the details for me.
First, does this mean companies will essentially have to run their own data centers for the Local M365? What will that involve in terms of management, like network and backup? I'm also curious about the costs associated with this new setup. If we go for a private cloud for a sovereign M365 deployment, do we need to have enough storage for all our data? How will data movement be affected? Lastly, I'd love to hear your general thoughts on this announcement. It seems a bit vague, but for those more familiar with cloud and DC, could this really work as a concrete solution for European governments? Thanks in advance for all your insights!
3 Answers
From what I gathered, they haven’t released detailed technical information yet. To me, it feels like they’re trying to recreate something along the lines of Windows Small Business Server, but with a Microsoft 365 twist. We might get more clarification at Ignite 2025!
Honestly, I see this as Microsoft trying to give the EU a compliance solution without giving up control. Here’s the rundown:
1. "Local" doesn’t mean full on-prem; it’s isolated regions run by local entities on Microsoft infrastructure, which helps organizations meet data sovereignty requirements without hardware management.
2. You won’t manage the full stack—Microsoft will handle the network, backups, and infrastructure. You’ll likely have more say at the policy level, like data residency and access control, but not on the hardware side.
3. Expect higher costs because sovereign solutions come with premium pricing for the added isolation and local support, but it’s still cheaper than setting up your own data centers.
4. This solution is a perfect fit for EU governments who want cloud flexibility but are cautious about foreign access issues. It’s also a strategic move against initiatives like GAIA-X aimed at cloud independence.
Definitely not aimed at SMBs, but could be a solid option for government, defense, and finance sectors. Adoption might be slow, but it’s very possible!
Not entirely accurate; Azure Local is indeed about placing a rack in your data center with a management plane connected to Azure, including options for local disconnection.
Isn’t "Azure Local" just a rebranded Azure Stack? If I recall correctly, Azure Stack had a limited number of services. The M365 aspect is intriguing, but the lack of details makes it hard to say for sure how it will play out.
Actually, Azure Local is more like a rebranded Azure Stack HCI. What you're mentioning sounds more like the Azure Stack Hub.
Yeah, it seems more like a move to reassure the EU that they're still in control of their billions. Let’s see how this unfolds.