Managing resources across multiple clouds and on-premises data centers is one of the toughest challenges in modern IT environments. The complexity and time demands of juggling different management tools can be overwhelming.
Azure Arc offers an elegant solution. Microsoft launched this service in 2019 to extend Azure’s management capabilities beyond its own ecosystem. You can now manage Windows and Linux servers, virtual machines, Kubernetes clusters, and SQL Server instances as if they ran directly in Azure – whatever their actual location. On top of that, it lets you apply consistent governance policies across your environments with familiar Azure tools like Azure Policy and tags.
In this piece, you’ll find what Azure Arc means for your hybrid infrastructure strategy. The setup process and service offerings become clear as you dive deeper. Here’s the best part – organizations of all sizes can access the Azure Arc control plane functionality for servers with no extra cost.
What is Azure Arc and Why It Matters
The IT landscape changes faster than ever, and managing infrastructures of all types has grown more complex. 87% of organizations now opt for multi-cloud strategies to achieve scalability, efficiency, and cost optimization, according to Flexera. This approach creates major challenges.
Understanding the hybrid and multicloud challenge
Managing modern IT environments resembles conducting an orchestra where each section plays from a different sheet of music. Organizations face difficulties controlling environments that span on-premises data centers, multiple clouds, and edge deployments. Each environment brings its own management tools, which creates operational silos and reduces efficiency.
New DevOps and ITOps models become exceptionally challenging to implement when resources scatter across different platforms. Traditional cloud management methods no longer work effectively because they can’t provide smooth integration and control across these fragmented environments.
How Azure Arc bridges the gap
Azure Arc works like a universal translator for your hybrid infrastructure. Azure Arc’s core function extends Azure’s control plane to any infrastructure and creates a bridge between Azure and your non-Azure resources. Your server becomes a “connected machine” and an Azure resource once connected to Azure Arc, which lets you manage it with familiar Azure tools.
This approach delivers several key benefits:
- It creates a centralized, unified management platform for your entire environment
- You can apply consistent security policies and perform vulnerability assessments in a variety of environments
- Resources can be organized, tagged, and governed just like native Azure resources
- You gain access to Azure services like Azure Monitor and Azure Policy whatever your resources’ location
Real-world example: Managing on-prem servers with Azure Arc
Royal Bank of Canada’s (RBC) story shows a remarkable transformation with Azure Arc. RBC started a pilot project to automate deployments and manage on-premises databases after learning about the concept at Microsoft Ignite 2019.
RBC combined Azure Arc-enabled SQL Managed Instance and PostgreSQL Hyperscale with their existing Kubernetes environment. This containerization approach made automation simpler and offered flexibility in database service management.
RBC achieved impressive results. Application teams gained self-service capabilities that optimized infrastructure management and cost monitoring through infrastructure as code. Plus, they achieved quicker database deployments, reduced lead times, and better cost efficiency—all while meeting strict data sovereignty regulations.
Azure Arc Setup: A Step-by-Step Walkthrough
Azure Arc deployment needs careful planning to connect your hybrid infrastructure smoothly. Here’s a simple breakdown of the steps you need.
Preparing your environment
Your environment must meet several prerequisites before you start the Azure Arc deployment. The first step involves registering these resource providers in your Azure subscription:
- Microsoft.HybridCompute
- Microsoft.GuestConfiguration
- Microsoft.HybridConnectivity
Each machine needs outbound connectivity to Azure resources for server onboarding. Administrative privileges are essential – Windows machines need an account in the Local Administrators group, while Linux systems require root access.
The next step involves choosing your connectivity method. Your security requirements will help you pick between public endpoints, private endpoints, or a proxy server configuration.
Installing the Azure Connected Machine agent
The Azure Connected Machine agent forms the life-blood of Azure Arc implementation. Here’s how to install it:
- Direct yourself to “Servers – Azure Arc” in the Azure portal
- Select “Add” and choose “Add a single server”
- Generate an installation script tailored to your environment
- Transfer the script to your target machine
- Run the script with administrative privileges
Windows servers running version 2022 or later offer an alternative – the integrated Azure Arc Setup wizard provides an accessible interface.
Registering Kubernetes clusters with Azure Arc
Azure Arc management of your Kubernetes clusters requires these steps:
- Register the Microsoft.Kubernetes and Microsoft.KubernetesConfiguration providers
- Point your kubeconfig file to the correct cluster
- Connect using the command: az connectedk8s connect –name <cluster-name> –resource-group <resource-group>
- Run kubectl get deployments,pods -n azure-arc to verify that all agent pods are in Running state.
Setting up Azure Arc-enabled SQL Server
Azure Arc provides efficient management capabilities for SQL Server instances. SQL Server detection happens automatically when you connect a server to Azure Arc. The Azure extension for SQL Server installs by itself, and your SQL Server instance resources appear in Azure.
The central management platform creation completes the process. You can find your newly registered resource in Azure Arc > SQL Server.
Exploring Azure Arc Services and Use Cases
Azure Arc’s specialized services make it powerful and flexible for hybrid cloud management. Let’s see how these services work in real-world scenarios.
Azure Arc-enabled servers
Azure Arc-enabled servers helps you manage Windows and Linux machines outside Azure. These machines become “connected machines” with Azure Resource IDs after connection. You can use familiar Azure tools to manage them. The system lets you apply governance policies, use Microsoft Defender for security, and set up machines with Azure Automation. You can also track performance through VM insights from a single management plane.
Azure Arc-enabled Kubernetes
Azure Arc-enabled Kubernetes works with any CNCF-certified Kubernetes cluster. The clusters can run on AWS, Google Cloud, or your own infrastructure. The connection enables you to:
- Apply Azure Policy for consistent governance
- Secure clusters with Defender for Containers
- Use GitOps for automated configuration management
- Deploy applications consistently across environments
Azure Arc-enabled data services
Kubernetes helps Azure Arc run Azure data services anywhere. The main services include:
- SQL Managed Instance: This gives you evergreen SQL that removes the need for upgrades every 5-7 years
- PostgreSQL Hyperscale: Available in preview when you need high-performance databases
These services bring cloud benefits like automatic updates, elastic scaling, and built-in high availability to your infrastructure.
Azure Arc-enabled VMware vSphere and SCVMM
The control plane extends to your virtualization platforms through these specialized services:
- VMware vSphere: You can find your VMware estate, handle VM operations (create, resize, delete), and enable self-service through Azure RBAC
- SCVMM: Azure lets you browse System Center VMM resources and build automation pipelines with familiar tools
Tips, Lessons Learned, and Common Pitfalls
Azure Arc offers powerful capabilities, but making it work comes with its fair share of challenges. My experience with many Azure Arc deployments has taught me valuable lessons about avoiding common pitfalls.
Top mistakes to avoid during setup
The most common problem organizations face happens when connected machines don’t show up in the Azure portal after onboarding. Network connectivity issues are usually the root cause – the agent can’t reach the required Azure endpoints. Azure Arc needs outbound HTTPS traffic to work, so checking your firewall settings should be your first step.
Resources often misbehave because of mismatched policy assignments with Arc-enabled resources. This usually happens due to wrong Azure Policy definitions or scope settings. You’ll get better results if you target policies through resource groups instead of making broad subscription-level assignments.
Extensions sometimes act up because of version conflicts or compatibility problems. Your system will work better if you keep agents and extensions up to date.
Performance and connectivity tips
The health of your Arc agents needs regular monitoring to keep Arc-enabled resources running smoothly. Arc agents don’t need much overhead, but you should watch their impact, especially if resources are limited.
The azcmagent check command helps verify network connectivity to needed endpoints when connection problems arise. SQL Server setups need the –extensions flag to test networking for SQL management parts.
Large environments benefit from automated onboarding through ARM templates, Terraform, or Bicep. This approach reduces mistakes and speeds up deployment. Standard naming and tagging rules will help you manage and track your hybrid infrastructure better.
Security best practices for Azure Arc resources
Microsoft shares security responsibilities with you for Azure Arc deployments. You must handle RBAC access, protect credentials, and update the Connected Machine agent.
Here are key practices to secure sensitive environments:
- Set up a separate Azure subscription with few administrators for Tier 0 assets
- Create allowlists to control extension installations
- Use Microsoft Defender for servers to monitor security baselines
- Keep service principal credentials in Azure Key Vault
- Use full disk encryption to protect the agent’s private keys
Machines with strict security needs should have remote access and unused agent features turned off to prevent harmful changes.
Conclusion: Transforming Your Hybrid Cloud Management
My years of implementing Azure Arc in organizations of all sizes have shown me how it changes complex multi-cloud environments into manageable ecosystems. Azure Arc solves fragmentation problems that affect 87% of organizations using multi-cloud strategies today.
Azure Arc gives you a single view of your entire infrastructure – whether you run on-premises servers, Kubernetes clusters, or SQL instances. The Azure Arc control plane for servers costs nothing extra, making it available to organizations of any size.
Setting up Azure Arc needs proper planning and attention to detail. My previous deployments taught me that following the setup steps I outlined helps you avoid common problems like connectivity issues or policy misalignments. The security practices I described will protect your hybrid environment from vulnerabilities.
Azure Arc is the future of hybrid cloud management. Today’s environments keep getting more complex. Organizations need tools that deliver consistent governance, security policies, and management capabilities in different infrastructures. My client work shows that companies using Azure Arc gain major operational advantages in today’s digital world.
You have what you need to begin your Azure Arc trip. Start with a few test servers. Move to your Kubernetes clusters next. Bring your hybrid infrastructure under Azure’s management tools step by step. You’ll quickly see the benefits of unified operations, consistent governance, and simplified security as your hybrid cloud strategy grows.
FAQs
Q1. What is Azure Arc and how does it benefit hybrid cloud environments?
Azure Arc extends Azure’s management capabilities to resources not hosted within Azure, allowing you to manage servers, virtual machines, Kubernetes clusters, and SQL Server instances across multiple clouds and on-premises data centers. It provides a centralized, unified management platform for your entire environment, enabling consistent governance and security policies.
Q2. How do I set up Azure Arc for my servers?
To set up Azure Arc for servers, first ensure your environment meets the prerequisites, including registering necessary resource providers and having outbound connectivity. Then, install the Azure Connected Machine agent on your target machines using the installation script generated from the Azure portal or the Azure Arc Setup wizard for Windows Server 2022 and later.
Q3. What are the key services offered by Azure Arc?
Azure Arc offers several key services, including Arc-enabled servers for managing Windows and Linux machines, Arc-enabled Kubernetes for container orchestration, Arc-enabled data services for running Azure data services anywhere, and Arc-enabled VMware vSphere and SCVMM for virtualization management.
Q4. What are some common pitfalls to avoid when implementing Azure Arc?
Common pitfalls include connectivity issues preventing machines from appearing in the Azure portal, misalignment between policy assignments and Arc-enabled resources, and unexpected behavior from extensions due to version mismatches. Regularly monitoring agent health, automating onboarding processes, and keeping agents and extensions updated can help avoid these issues.
Q5. What security best practices should I follow for Azure Arc resources?
Key security best practices for Azure Arc include using a dedicated Azure subscription for sensitive assets, implementing allowlists for extensions, enabling Microsoft Defender for servers, storing service principal credentials in Azure Key Vault, and implementing full disk encryption. For machines with heightened security requirements, consider disabling remote access capabilities and unused agent functionality.
