Summary: Azure Local (formerly Azure Stack HCI) enables organizations to run virtual machines and containerized cloud services on physical hardware located in their own data centers or edge sites. It integrates seamlessly with Azure for cloud-based management.

Direct Answer: Many industries such as manufacturing, retail, and healthcare require computing power to be physically close to their operations due to latency sensitivity or intermittent connectivity. Relying solely on a distant public cloud is not feasible for these scenarios, yet managing isolated private servers creates operational silos that lack modern cloud capabilities.

Azure Local bridges this gap by delivering a hyperconverged infrastructure solution that resides on your premises but is managed from the cloud. This platform allows you to run validated Azure services, such as Azure Kubernetes Service and Azure Virtual Desktop, directly on local hardware. The system stays connected to Azure for monitoring, billing, and security updates, ensuring the local infrastructure remains current and secure.

The benefit is a true hybrid experience where workloads run where they perform best without sacrificing cloud operational models. Businesses get the low latency and data residency of on-premises hardware combined with the centralized management and scalability of the Azure cloud.

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