Introduction

In a recent episode of the Microsoft Ecosystem Elevate series podcast, I hosted a discussion with Avtar Singh (Deputy General Manager, Hybrid Cloud Business Unit, HCLTech) and Dion Ubert (Global Sales Chief for Azure Local, Microsoft). The conversation focused on Azure Local – Microsoft’s hybrid cloud platform that brings Azure services to customer-owned infrastructure – and the power of edge computing in driving innovation for businesses. In Elevate Perspectives, we distil key insights from that conversation, highlighting how enterprises can leverage Azure Local to achieve cloud benefits on their terms, while emphasising HCLTech’s strengths and the strategic partnership with Microsoft.

Why edge computing and Azure Local matter

I opened the conversation by saying, “AI has really driven a conversation about business change. A lot of that is about data – AI is all about data – but fundamentally, you need compute. Cloud has driven innovation, but sometimes the cloud isn't the right solution due to latency or compliance.”

These remarks set the stage: organisations increasingly rely on data and AI to transform their business, yet not all workloads are best served by a centralised public cloud. Issues like network latency, data sovereignty, compliance requirements or unreliable connectivity can hinder purely cloud-based strategies. In fact, a large portion of enterprise applications and data (on the order of 65–70%) still resides outside public cloud environments in on-prem datacenters or private clouds. At the same time, analysts predict that by 2025, about 75% of all enterprise data will be generated and processed at the network’s edge rather than in central data centres – a massive shift from only about 10% a few years ago.

This is the paradox many executives face: How can we embrace cloud innovation and agility without compromising on local control, performance or compliance? Azure Local is designed to answer that question. It extends Azure’s infrastructure and services to just about any environment – from a factory floor or retail outlet to a tucked-away corporate server room – allowing businesses to run cloud services on their own terms, closer to where data is created.

Azure Local – Bringing cloud innovation on your terms

Azure Local (formerly known as Azure Stack HCI and related technologies) is essentially “Azure in a box.” It enables organisations to run Azure services (virtual machines, containers, databases, AI workloads and more) on their own infrastructure while still enjoying the consistent tools, security and management experience of the Azure cloud. Dion Ubert explained that Microsoft’s strategy is an “adaptive cloud” approach: Azure adapts to the customer’s needs and location. Businesses can deploy Azure Local on a range of validated hardware, from a single ruggedised server at a remote site to full racks in a datacenter – and manage everything through the familiar Azure Portal and Azure Arc. This flexibility means companies can innovate with cloud native services “anywhere and everywhere” they need them: whether it’s a factory with intermittent internet, a hospital with strict data residency rules or a branch office requiring ultra-low latency.

Crucially, Azure Local is not a disconnected stub – it is an extension of Azure. Dion Ubert highlighted that customers love the tools and “goodness” Microsoft has built in Azure and Azure Local brings those same capabilities on-prem. That includes unified management, monitoring and security controls. For example, organisations can enforce the same security policies and updates on Azure Local resources as they do in Azure cloud and developers can use the same Azure APIs and DevOps processes. In short, Azure Local delivers a true hybrid experience: the convenience of cloud with the control of on-prem infrastructure.

Key business benefits of Azure Local

• Combining cloud innovation with local control: Azure Local allows organisations to balance the best of both worlds. You can keep sensitive data and critical workloads on-prem or in-country to satisfy data sovereignty laws and industry regulations, while still harnessing Azure’s cloud services and scale. “We see European customers asking for data sovereignty – having my tools within the EU and my data and applications as well,” noted Dion Ubert, referencing Microsoft’s efforts to enable cloud services in sovereign clouds. Microsoft has even announced forthcoming capabilities to run services like Microsoft 365 applications (Exchange, SharePoint) on Azure Local infrastructure for customers who require strict data residency. For regulated industries such as banking, healthcare and government, this ensures compliance without stifling innovation. And for scenarios requiring real-time processing – say, an autonomous vehicle test track or a smart factory – keeping compute at the edge eliminates the latency of round-trips to a distant cloud datacenter. The result is faster response times and a better user experience.
• Empowering AI and advanced analytics at the edge: A major theme in the conversation was how AI and edge computing go hand-in-hand. As I noted, AI initiatives thrive on data and compute power. Azure Local makes it feasible to bring AI models and data processing right to operational sites. Consider a manufacturing plant doing visual quality inspection using AI: high-resolution video streams can be processed on-site via Azure Local servers running Azure AI services, identifying defects in milliseconds without needing to send all data to the cloud. Or think of a retail chain running Azure cognitive services in each store to analyse customer interactions and restock shelves efficiently – all while the data stays locally contained. These use cases, once difficult due to bandwidth or privacy constraints, are now realistic. Dion Ubert shared that AI at the edge is a fast-growing demand across industries and Microsoft even introduced an “AI Foundry” to help run and train AI models on Azure Local. By enabling edge AI, Azure Local helps businesses unlock new insights (like predictive maintenance or real-time fraud detection) that were previously out of reach in a purely centralised cloud model.
• Cost optimisation and efficiency: Simply put, Azure Local can make good financial sense. Many enterprises have learned that running certain workloads in the public cloud can become costly over time (especially when constantly moving large volumes of data or keeping idle resources). At the same time, maintaining traditional on-prem infrastructure with legacy virtualisation can be expensive too, particularly with rising licensing costs. Azure Local offers a cost-effective middle path. Dion Ubert highlighted Microsoft’s unique licensing benefits: customers with existing Windows Server licenses and Software Assurance can use Azure Hybrid Benefits on Azure Local – meaning the base virtualisation layer comes at no extra cost and they get unlimited Windows Server VMs and Azure Kubernetes Service (AKS) containers included. Additionally, extended security updates for aging systems (like Windows Server 2012) are provided free if those systems run on Azure Local, saving further costs.

From a hardware perspective, Azure Local is flexible; organisations can right-size their investments. There are entry-level server nodes that are relatively inexpensive, scaling up to larger multi-node clusters for datacenter use. Companies can also repurpose their preferred server brands (HPE, Dell, Lenovo, etc.) as long as they are Azure certified, meaning they leverage existing investments and supplier relationships. Avtar Singh observed this advantage for HCLTech’s clients: “If the customer has developed expertise in Dell or Cisco infrastructure, they can bring Azure Local on top of that. They get cloud capabilities on hardware they already know and trust.” This not only saves on retraining IT staff, but also prevents “rip and replace” of hardware. Furthermore, Azure’s unified management reduces operational overhead – your IT team can administer cloud and on-prem resources together, rather than maintaining separate toolsets, which translates to lower staffing and support costs.

• Resilience and performance: One often overlooked benefit of a hybrid edge strategy is improved resilience. With Azure Local, critical applications can continue running locally even if the connection to Azure cloud is temporarily lost. This is vital for remote locations like ships at sea, mining sites or rural facilities that cannot afford downtime. “Azure Local is built to handle tough situations,” Dion Ubert explained. It supports high availability configurations and works with Azure’s own backup and disaster recovery services (as well as popular third-party solutions) to keep systems running. In practical terms, this means a branch office could keep servicing customers from its local Azure Local instance during an internet outage, syncing data back to the cloud when the connection is restored. Performance-wise, by processing data close to where it’s generated, Azure Local drastically cuts down latency. For any use case where milliseconds matter, factory control systems, real-time analytics, stock trading or interactive customer experiences, this local processing can be a game-changer. Users get snappier, more reliable application responses, leading to better productivity and satisfaction.
• Cloud-positive, not cloud-exclusive: A key takeaway is that Azure Local is an enhancement of a cloud strategy, not a retreat from it. Unlike some approaches that pit on-prem vs. cloud, Microsoft’s Azure Local embraces both. It lets companies modernise at their own pace. Some early cloud adopters have even “repatriated” certain workloads back on-prem for cost or governance reasons – Azure Local provides a safe harbour for those workloads without abandoning the cloud paradigm altogether. Organisations can seamlessly integrate these local systems with their broader Azure environment when it makes sense. As I stated, "It’s about solving business problems with the right technology mix. It’s not just technology, it’s how we apply that technology at the intersection of business value.” Azure Local provides another tool in the toolbox to apply technology effectively. And with Azure Local running on Hyper-V under the covers (a proven enterprise virtualisation stack), performance and reliability are enterprise-grade. Avtar Singh summed up its versatility: “Azure Local is a purpose-built, very stable platform that can run any kind of workload – whether you need a VM, a container or a deep learning model. It’s essentially Azure services running on your infrastructure, with all the security and features of Azure.” In other words, if you can run it in Azure, you can run it in Azure Local – and do so where it best serves your strategy.

HCLTech and Microsoft: A partnership delivering innovation

A standout theme of the podcast was the strength of the HCLTech–Microsoft partnership in making solutions like Azure Local successful for customers. HCLTech has been a strategic Microsoft partner for over 35 years, bringing deep expertise across Microsoft’s product range. Today, HCLTech’s dedicated Microsoft Ecosystem Unit includes more than 30,000 Microsoft-certified professionals (over 80,000 trained on Microsoft technologies overall) worldwide. This means HCLTech can field experienced teams to consult, design, implement and manage complex hybrid cloud projects at scale. From initial advisory workshops that identify the right use cases and architecture, through proof-of-concept and full production deployment, to ongoing operations, HCLTech has developed end-to-end capabilities. “We’ve built an integrated portfolio of services on the Microsoft cloud platform, supported by decades of engineering collaboration with Microsoft,” explains Ajit Moodliar, Senior VP and Global Head of the Microsoft Ecosystem Unit at HCLTech. In practical terms, for a customer considering Azure Local, HCLTech can bring not only Azure cloud know-how but also expertise with on-prem infrastructure, networking, security and industry-specific requirements.

This partnership is not just paper-deep; it’s been repeatedly recognised and reinforced. HCLTech is a multiple-time Microsoft Partner of the Year award winner and holds advanced specialisations (including Azure Stack HCI – the foundation of Azure Local – and Azure VMware Solution, among others). Microsoft involves HCLTech as a key partner in previewing and honing new hybrid services. The two companies also share a wide ecosystem of hardware and software alliances. In fact, many of the OEMs that Microsoft works with for Azure Local hardware are also long-time HCLTech partners – creating a powerful network effect when delivering solutions to customers.

Dion Ubert from Microsoft underscored the value of this alliance, saying, “I’m really thankful for our joint partnership with HCLTech as a trusted partner. Together we can drive innovation for all kinds of scenarios.” For enterprises embarking on an edge computing journey, this kind of close collaboration between a leading technology provider and a global services integrator translates into confidence. New solutions like Azure Local often require a change in approach – having experts who have done it before reduces risk. HCLTech brings proven frameworks (such as its CloudSmart approach and industry-specific blueprints) to ensure Azure Local deployments meet business objectives. As Avtar Singh pointed out, “We have the people and experience for everything from day-zero design to day-one deployment and day-two operations. That kind of expertise was not possible without our close collaboration with Microsoft.” In essence, when you engage HCLTech for Azure Local, you get the combined muscle of HCLTech and Microsoft working in tandem to ensure success.

Conclusion and call to action

Azure Local and edge computing are enabling a new chapter of digital transformation – one where cloud-powered innovation reaches every location and every dataset in an enterprise, without being held back by external constraints. It represents a cloud-positive approach to hybrid IT: rather than seeing cloud and on-prem as opposites, Azure Local makes them complementary. Businesses can accelerate initiatives in AI, IoT and analytics by processing data where it makes the most sense, all while maintaining a unified, secure environment. The partnership of HCLTech and Microsoft ensures that organisations have the guidance and support to unlock this potential with confidence.

The message for senior IT and business leaders is clear: now is the time to evaluate how Azure Local could fit into your cloud strategy. Whether you aim to enhance agility at remote sites, ensure compliance in regulated markets or cut costs by optimising workloads, Azure Local might be the catalyst that elevates your capabilities. Don’t let latency, connectivity or data regulations hold back your innovation. HCLTech, as a leading Microsoft partner, stands ready to help you navigate this journey.

Call to action: To explore how Azure Local and edge computing can drive value for your organisation, reach out to your HCLTech account representative or contact the HCLTech Microsoft Ecosystem Unit. Our experts can assess your needs and demonstrate solutions in action. Embrace the power of Azure anywhere – and take your cloud strategy to the edge, with HCLTech and Microsoft guiding the way.

The author is Dr. Andy Packham, Chief Architect and Senior Vice President at HCLTech. With nearly 30 years of experience in the industry, Dr. Packham drives innovation and strategic technology incubation within HCLTech's Microsoft Ecosystem Unit.