Azure Stack HCI: Evolution, Use Cases, and Comparison with Other Solutions

Azure Stack HCI: Evolution, Use Cases, and Comparison with Other Solutions

This article is intended for IT professionals, system administrators, and decision-makers looking to explore the potential of Azure Stack HCI for modernizing their on-premises infrastructure. Whether you’re considering hybrid cloud solutions or comparing various hyper-converged infrastructure options, this post will provide valuable insights into the evolution, use cases, and comparisons of Azure Stack HCI against other major solutions such as VMware vSAN, Nutanix, Dell EMC VxRail, KVM-based solutions (Proxmox, OpenStack), OpenShift, and Hyper-V. The post will also cover important version differences between 21H2, 22H2, and 23H2 to help guide infrastructure planning and deployment strategies.

History of Azure Stack HCI

Azure Stack HCI originated from Microsoft’s Hyper-V technology, a longstanding virtualization solution integrated with Windows Server. As organizations sought hybrid cloud solutions, Microsoft integrated Hyper-V with Azure, enabling businesses to extend their on-premises environments seamlessly into the cloud.

Azure Stack HCI is a natural evolution of Hyper-V, designed to offer hybrid cloud functionality by allowing users to manage their on-premises infrastructure directly from Azure. Today, Azure Stack HCI enables comprehensive system management, including hardware monitoring and lifecycle management—all through Azure—providing a unified experience for both cloud and on-premises environments.

Evolution of Azure Stack HCI

Initially, Azure Stack HCI focused on virtualizing workloads and providing software-defined storage. Over time, it has evolved to include services from Azure’s ecosystem. Now, it supports not only traditional workloads but also cloud-native services. Azure Stack HCI currently enables:

• Infrastructure Services: Virtual machines (VMs) and networking from Azure.
• Azure Virtual Desktop (AVD)
• Azure Kubernetes Service (AKS)
• Platform Services: Azure Data Controller, SQL Managed Instances, PostgreSQL Managed Instances, and Machine Learning services.

These services allow organizations to run modern workloads and benefit from cloud innovation while still utilizing on-premises infrastructure.

Use Cases for Azure Stack HCI

1. Extended Security Updates (ESU) for Legacy Systems

   Azure Stack HCI is an ideal solution for companies relying on legacy systems that are no longer supported. The platform includes Extended Security Updates (ESU) at no additional cost, allowing businesses to maintain critical security without incurring expensive licensing fees.

2. Virtual Desktop Infrastructure (VDI)

   Azure Stack HCI is the only current solution for deploying Azure Virtual Desktop (AVD) on-premises. With AVD now in General Availability (GA) on 23H2, organizations can deploy secure and scalable virtual desktop environments locally, fully integrated with Azure services.

3. Azure Kubernetes Service (AKS)

   Starting with version 23H2, deploying AKS on Azure Stack HCI has become simpler and more transparent. The improved AKS implementation minimizes complexity, allowing IT teams to focus on deploying applications rather than managing infrastructure. This enhanced experience makes it one of the easiest ways to run Kubernetes workloads on-premises.

4. Workloads like Virtual Machines

   Azure Stack HCI allows the native deployment of virtual machines from Azure, fully integrated with Azure Arc at no additional cost. This integration includes features such as Azure Updates, Azure Policies, and other Arc services, streamlining the management of on-premises workloads.

   Additionally, Azure Stack HCI supports Windows Server 2022 Datacenter: Azure Edition, which includes Hotpatching, allowing updates without frequent reboots. This feature greatly reduces downtime and increases system availability.

Comparison of Azure Stack HCI Versions: 21H2, 22H2, and 23H2

Azure Stack HCI 21H2

• Support: Azure Stack HCI 21H2 is no longer supported, having reached the end of its lifecycle.
• Features: This version was the foundational release but has since been surpassed by newer, more feature-rich versions.

Azure Stack HCI 22H2

• Stretch Cluster: The Stretch Cluster feature was supported but only for an additional location, providing basic disaster recovery capabilities, though not as flexible as full multi-site clustering.
• Deployment: Deploying Azure Stack HCI 22H2 was largely manual, relying on PowerShell scripts, which made implementation complex and time-consuming.
• AKS: Deploying AKS in 22H2 was similarly complex, requiring multiple PowerShell scripts, making Kubernetes management cumbersome.
• AVD: Azure Virtual Desktop was available only in Preview during 22H2, limiting its usability in production environments.
• SCVMM Support: System Center Virtual Machine Manager (SCVMM) is supported in 22H2, allowing for advanced management and orchestration of virtualized environments.

Azure Stack HCI 23H2

• Cloud Deployment: Azure Stack HCI 23H2 introduced a cloud-first deployment model, simplifying and standardizing the setup process across all deployments. This approach significantly reduces complexity compared to previous versions.
• AVD: Azure Virtual Desktop reached General Availability (GA) in 23H2, offering organizations a robust, scalable solution for on-premises VDI, fully integrated with Azure.
• Enhanced Security: The Supplemental Package, now included by default in 23H2, improves security by hardening the infrastructure with additional protections.
• Improved VM Management: Deploying and managing VMs from Azure has been greatly enhanced in 23H2, making it easier to manage workloads with a native Azure experience.
• AKS Improvements: AKS deployment is now more seamless and efficient in 23H2, reducing the need for manual scripting. This enhancement enables IT teams to focus more on deploying and managing applications rather than wrestling with infrastructure.
• Networking and Storage: 23H2 includes significant improvements in networking and storage management, further simplifying infrastructure administration.
• SCVMM Support Limitations: System Center Virtual Machine Manager (SCVMM) is not currently supported in 23H2. Support for SCVMM is expected to arrive with the next version of Windows Server in 2025. This limitation may affect organizations that rely heavily on SCVMM for managing their virtualized environments.

Version Support and Transition Considerations

While 23H2 offers a more streamlined and secure solution, 22H2 remains supported, particularly due to its inclusion of Stretch Cluster—a feature that is absent in 23H2—and SCVMM support. The lack of SCVMM support in 23H2 means organizations dependent on SCVMM may face challenges in upgrading. Additionally, the deployment model in 23H2 introduces more cloud dependencies, which has complicated the upgrade path for some organizations. These dependencies have yet to be fully addressed, making some businesses hesitant to transition from 22H2 to 23H2.

Comparison with Other Solutions

Azure Stack HCI faces competition from other major players in the hyper-converged infrastructure space. Let’s compare it with VMware vSAN, Nutanix, Dell EMC VxRail, KVM-based solutions (Proxmox, OpenStack), OpenShift, and Hyper-V:

VMware vSAN

VMware vSAN is known for its strong disaster recovery capabilities, including support for Stretch Clustering across multiple data centers. However, due to VMware’s acquisition by Broadcom, the licensing model has changed, and costs have increased considerably. This change has made Azure Stack HCI a more attractive solution because of its cost-effectiveness and integrated features like Azure Arc, Extended Security Updates (ESU), and native VM deployment from Azure at no additional cost.

Nutanix

Nutanix is a leading provider of hyper-converged infrastructure solutions, offering a comprehensive platform that combines compute, storage, and virtualization. Nutanix’s software-defined approach simplifies infrastructure management and supports multiple hypervisors, including their own AHV, as well as VMware ESXi and Microsoft Hyper-V.

While Nutanix excels in providing a consistent experience across different cloud environments, licensing costs can be significant. Azure Stack HCI, on the other hand, offers deep integration with Azure services, potentially reducing overall costs and complexity for organizations invested in the Microsoft ecosystem.

Dell EMC VxRail

Dell EMC VxRail is a hyper-converged infrastructure appliance developed in partnership with VMware. It is tightly integrated with VMware vSAN and VMware Cloud Foundation, offering robust performance and scalability.

However, similar to VMware vSAN, the acquisition by Broadcom has led to changes in licensing models and increased costs. This shift makes Azure Stack HCI a more cost-effective alternative, especially for organizations looking to leverage Azure services without incurring higher expenses.

KVM (Proxmox, OpenStack)

KVM (Kernel-based Virtual Machine) is an open-source virtualization technology integrated into Linux. Platforms like Proxmox and OpenStack leverage KVM to provide virtualization and cloud computing solutions. These solutions are known for their flexibility and cost-effectiveness, especially for organizations comfortable with open-source technologies.

However, they often require significant expertise to deploy and manage effectively. While they offer a high degree of customization, they may lack the seamless integration with cloud services that Azure Stack HCI provides. Azure Stack HCI offers a more unified hybrid cloud experience, with native integration into Azure services, making it easier for organizations to extend their on-premises environments into the cloud.

OpenShift

OpenShift is a Kubernetes-based platform known for its strong container orchestration capabilities. While it excels at managing cloud-native workloads, Azure Stack HCI’s integration with Azure Kubernetes Service (AKS) and native Azure platform services makes it a more comprehensive hybrid solution, especially for organizations seeking to balance containers with traditional virtual machine workloads.

Hyper-V

While Hyper-V remains a strong virtualization platform, it lacks the cloud-native integration found in Azure Stack HCI. Azure Stack HCI builds on Hyper-V’s foundation, offering advanced capabilities like lifecycle management, Azure Arc integration, and cloud-first deployment. For organizations already using Hyper-V, Azure Stack HCI provides a natural and feature-rich upgrade path.

Conclusion

Azure Stack HCI has evolved into a comprehensive solution that allows organizations to manage hybrid workloads, from legacy systems to modern cloud-native applications. With its robust feature set—including Extended Security Updates, Azure Virtual Desktop, AKS, and native Azure Arc integration—Azure Stack HCI provides a unified solution for businesses seeking to blend on-premises infrastructure with the power of the cloud.

While the 23H2 release sets new standards for cloud-first deployment and simplified management, organizations running 22H2 may find it challenging to upgrade due to the dependencies and lack of Stretch Cluster and SCVMM support in 23H2. For businesses deeply invested in Azure or those looking to streamline infrastructure management, Azure Stack HCI remains a compelling option, standing out from competitors like VMware vSAN, Nutanix, Dell EMC VxRail, KVM-based solutions, OpenShift, and Hyper-V.

Azure Stack HCI continues to improve with each release, offering a solid foundation for modern IT workloads while maintaining flexibility, security, and cost-effectiveness in a hybrid cloud environment.

Disclaimer

The content of this article is based on my own experiences and understanding of Azure Stack HCI, gathered over time through practical implementations, industry knowledge, and continuous learning. While I strive to provide accurate and up-to-date information, it’s important to consult official Microsoft documentation or professional support for specific use cases and technical issues.

Sources

• Azure Stack HCI Overview

Thank you for reading. If you have any questions or need assistance with Azure Stack HCI, feel free to reach out or leave a comment below.