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Azure Local pricing

Azure Local pricing overview

Azure Local is a distributed infrastructure solution to run virtual machines, containers and selected Azure services. It extends Azure to customer-owned infrastructure and simplifies operations with cloud-management or a locally hosted control plane. Azure Local is priced on a per core basis on your on-premises machines.

Explore pricing options

Azure Local is priced on a per physical core basis on your on-premises machines.

Prices are estimates only and are not intended as actual price quotes. Actual pricing may vary depending on the type of agreement entered with Microsoft, date of purchase, and the currency exchange rate. Prices are calculated based on US dollars and converted using London closing spot rates that are captured in the two business days prior to the last business day of the previous month end. If the two business days prior to the end of the month autumn on a bank holiday in major markets, the rate setting day is generally the day immediately preceding the two business days. This rate applies to all transactions during the forthcoming month. Sign in to the Azure pricing calculator to see pricing based on your current programme/offer with Microsoft. Contact an Azure sales specialist for more information on pricing or to request a price quote. See frequently asked questions about Azure pricing.

Azure Local is priced on a per physical core basis on your on-premises machines.

Host service fee

Instance Timing Price
Azure Local

For hyperconverged deployments with no external storage (L1)*
Monthly service fee $-/physical core/month
Azure Local

For multi-rack deployments, disaggregated deployments, or hyperconverged deployments with external storage (L2)
Monthly service fee $-/physical core/month
Azure Local with disconnected operations, locally hosted control plane (L3) Monthly service fee Contact your account representative

Azure Local offers a free trial for the first 60 days after registration. You will be charged the monthly service fee after your first 60 days using the service.

*If you are licensing Azure Local (L1) with Windows Server Datacentre with active Software Assurance through Enterprise Agreement or CSP, you may also choose to exchange core licences to activate Azure Hybrid Benefit, which waives the Azure Local (L1) host service fee and Windows Server subscription. Azure Hybrid Benefit for Azure Local is available only for hyper-converged deployments with cloud connected management and no external storage (L1), and not available for L2 and L3.  Learn more.

If you use the OEM licence for Azure Local and attach external storage for your deployment, you will be charged the monthly service fee ($-/physical core/month).

Add-on workloads (optional)

Instance Timing Price
Azure Kubernetes Service (AKS) enabled by Azure Arc Included with Azure Local, 2402 release and later
Windows Server subscription (for guests) Monthly service fee $23.3/physical core/month

Azure Kubernetes Service (AKS) enabled by Azure Arc is available at no extra charge when you use it on Azure Local with 2402 release and later (effective January 2025).

Windows Server subscription offers a free trial within the first 60 days of registering your Azure Local. You will be charged the monthly service fee after your first 60 days of using Azure Local.

Windows Server subscription gives you unlimited Windows Server guest licensing rights through Azure. Learn more.

How to buy Azure Local

There are two options to buy Azure Local software. Please note that an Azure subscription is required to complete the full set-up on your hardware.

Option 1: Buy a validated hardware solution from one of our partners with Azure Local software pre-installed. Browse solutions.

Option 2: Install Azure Local software with free 60-day trial built-in on new or repurposed hardware (must match capability of a solution in Azure Local catalogue). Download software.

Azure pricing and purchasing options

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Additional resources

Azure Local

Learn more about Azure Local features and capabilities.

Pricing calculator

Estimate your expected monthly costs for using any combination of Azure products.

Documentation

Review technical tutorials, videos, and more Azure Local resources.

  • You will be billed for all the physical processor cores on your system on a daily basis as long as your system is registered with the Azure Local service. When cores are counted, multi-threading is not included in the count. For example, if you have an 8 cores system that is registered October 1 – October 15, you will be billed for 8 cores * 15 days.
  • For Windows and paid version of Linux, guests are licensed separately.
  • You may either use Azure Hybrid Benefit or purchase Windows Server subscription. Compare Options.
  • No, the subscription is for the host software only. If you want to run Azure Local on new hardware, please visit Azure Local catalogue and contact your preferred vendor on that site.

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