What's new in Azure Local, version 23H2

Applies to: Azure Local, version 23H2

Important

Azure Stack HCI is now part of Azure Local. Product documentation renaming is in progress. Textual changes are complete, and visual updates will be finalized soon. Learn more.

This article lists the various features and improvements that are available in Azure Local, version 23H2.

Azure Local, version 23H2 is the latest version of the Azure Local solution. This version focuses on cloud-based deployment and updates, cloud-based monitoring, new and simplified experience for Arc VM management, security, and more. For an earlier version of Azure Local, see What's new in Azure Local, version 22H2.

There are multiple release trains for Azure Local, version 23H2: 2411, 2408, 2405, 2402, and 2311. The various features and improvements available for the releases included in these trains are discussed in the following sections.

2411 releases

Features and improvements in 2411

This is a baseline release with the following features and improvements:

• Renaming of Azure Stack HCI to Azure Local - Azure Stack HCI is now a part of Azure Local. Microsoft has renamed Azure Stack HCI to Azure Local to communicate a single brand that unifies the entire distributed infrastructure portfolio.

  For more information, see Renaming Azure Stack HCI to Azure Local.

• Azure Local for Small Form Factor (Preview)- Beginning this release, Azure Local supprts a new class of small devices with reduced hardware requirements. These low cost devices are suitable for edge scenarios across the industry horizontals. The devices must meet the Windows Server certification requirements as well as relaxed requirements from Software Defined Data Center (SDDC) and Windows Server Software-Defined (WSSD) program.

  For more information about this Preview feature, see System requirements for Azure Local for small form factor (Preview).

• Azure Local for disconnected operations (Preview) - Azure Local is now available for disconnected operations. Disconnected operations for Azure Local enable the deployment and management of Azure Local instances without a connection to the Azure public cloud.

  This feature allows you to build, deploy, and manage virtual machines (VMs) and containerized applications using select Azure Arc-enabled services from a local control plane, providing a familiar Azure portal and CLI experience.

  For more information about this Preview feature, see Azure Local for Disconnected Operations (Preview).

• Deploy Azure Local with Local Identity (Preview) - Starting this release, you can deploy Azure Local using Local identity with Azure Key Vault. By integrating with Key Vault and using certificate-based authentication, security posture is enhanced and operations continuity is ensured. This approach offers minimal edge infrastructure, a secure secret store, and simplified management by consolidating secrets in a single vault. Additionally, it streamlines deployment by reducing dependencies on Active Directory systems and simplifying firewall configurations.

• Arc VM changes: The following changes were made to Arc VM management:

  • Terraform templates for Arc VM - Starting this release, you can create logical networks and Arc VMs using Terraform templates.

    For more information, see Template to create logical networks and Template to create Arc VMs.

  • Add network inteface on static logical network - After the Arc VMs are provisioned, you can now add a network interface on a static logical network. To add this network interface, you are required to configure the desired static IP from within the VM.

    For more information, see Add a network interface on your Azure Local.

• Security improvements - Starting this release, the security posture of Azure Local is enhanced with the following improvements:

  • Security posture following Azure Local, version 22H2 to version 23H2 upgrade - Warnings and guardrails were added in the upgrade flow. Documentation was also updated to reflect the security posture of Azure Local after upgrading from version 22H2 to version 23H2.

    For more information, see Manage security after upgrading Azure Local from version 22H2 to version 23H2.

  • Improved security baseline compliance - Starting this release, the security settings on the Azure Local nodes are compared against the security baseline with full accuracy. On the right secured-core hardware, you achieve a 99% compliance score, which you can view in the Azure portal.

    For more information, see View security baseline compliance in the Azure portal.

• AKS on Azure Local - This release has several new features and enhancements for AKS on Azure Local. For more information, see What's new in AKS on Azure Local.

2408 releases

Note

A new ISO image is available that includes the Hyper-V role and all necessary Arc registration modules.

This release train includes the following releases:

Features and improvements in 2408.2

This is a baseline release with the following features and improvements:

• Arc VM management improvements: Starting this release, following improvements were made to the Arc VM management experience:

  • You can set a proxy configuration for Arc VMs on the Portal.
  • You can set a SQL Server configuration for Arc VMs on Portal.
  • You can now create an image from an Arc VM's OS disk.
  • You can now select the virtual switch of a logical network from a dropdown menu.

Features and improvements in 2408.1

This is a baseline release with the following features and improvements:

• Environment checker improvements: Starting in this release, a new validator was added in the environment checker that checks all storage adapters in each of the nodes.
• Install module version numbers: Starting in this release, the install module version numbers for Az.Accounts, Az. Resources, and Az.ConnectedMachine were changed. For more information, see Register machines with Azure Arc.
• Arc VM Management: Starting in this release, you can attach or detach GPUs to an Arc VM via CLI for GPU-P (preview) and DDA (preview). For more information, see:
  • Prepare GPUs for Azure Local (preview)
  • Manage GPUs using partitioning for Azure Local (preview)
  • Manage GPUs via Discrete Device Assignment for Azure Local (preview)
• Improved CLI error messages for deletion of VM network interfaces, data disks, and storage paths that are in use.
• Improved reliability when installing open ssh client during solution deployment.

Features and improvements in 2408

This is a baseline release with the following features and improvements:

Upgrade from version 22H2 to version 23H2

This release introduces the ability to upgrade your Azure Local instance from version 22H2 to version 23H2. The upgrade process is supported for clusters running version 22H2 with the latest updates and is a two-step process. While the OS upgrade is generally available, the solution upgrade will have a phased rollout.

For more information, see Upgrade Azure Local from version 22H2 to version 23H2.

Updates changes

This release contains the following changes for updates:

• Revised the names and descriptions of update steps. [27635293]
• Introduced a health fault alert that is raised when there are available updates on the system. [27253002]

Arc VM management changes

This release contains the following changes for Arc VM management:

• 12 new Azure Marketplace images went live. For more information, see Create Azure Local VM from Azure Marketplace images via Azure CLI.
• Creation of logical networks is blocked if trying to create with overlapping IP pools.
• Logical network properties are properly updated. Previously, the logical network sometimes would not have its properties (vLAN, IP Pools, etc.) filled.
• The vLAN field on a logical network will be defaulted to '0' if not specified.
• Either (not both) -image or -os-disk-name can be used to create a VM from a VHD. Previously, Azure CLI enforced -image to be required for az stack-hci-vm create command.

For more information, see the Fixed issues list in 2408.

SBE changes

This release contains the following changes for SBE:

• Reduced deployment times: Starting in this release, SBE extension interfaces are executed more efficiently leading to reduced Azure Local deployment times.
• CAU plugin: Starting in this release, SBE extensions use an updated CAU plugin that enhances support for host OS driver updates, addressing issues with drivers newer than those in the SBE. This plugin update provides hardware vendors more flexibility for driver version updates in support cases. Microsoft recommends installing host OS driver updates only through your hardware vendor's SBE.
• Improved error details: Starting in this release, hardware vendor SBE failures or exceptions will include the SBE publisher, family, and version at the beginning of the exception string. Provide this information to your hardware vendor to streamline the failure analysis.

2405 releases

The 2405 release train includes the following releases:

Features and improvements in 2405.3

This is primarily a bug fix release. See the Fixed issues list to understand the bug fixes.

Features and improvements in 2405.2

This is primarily a bug fix release with a few improvements.

• Arc VM management improvements: Starting this release, following improvements were made to the Arc VM management experience:

  • You can now view and delete VM network interfaces from the Azure portal.
  • You can view Connected devices for logical networks. In the Azure portal, you can go to the logical network and then go to Settings > Connected devices to view the connected devices.
  • Deletion of logical networks is blocked if connected devices are present. When you try to delete a logical network from the Azure portal that has connected devices, you'll see a warning message: Cannot delete logical network because it is currently in use. Delete all the resources under Connected Devices setting before you delete the logical network.
  • From this release onwards, a new URL needs to be added to the allowlist for stack-hci-vm Azure CLI installation. The URL has changed from: https://hciarcvmsstorage.blob.core.windows.net/cli-extension/stack_hci_vm-{version}-py3-none-any.whl to: https://hciarcvmsstorage.z13.web.core.windows.net/cli-extensions/stack_hci_vm-{version}-py3-none-any.whl. For more information, see Azure Local firewall requirements.

• Update health checks: Starting this release, a new health check was added and the update service was improved. Additionally, the update service now supports the ability to view or start new updates when the service crashes on machines. Also, multiple issues for health checks related to Azure Update Manager and Solution Builder Extension Update were fixed.

  For more information, see Fixed issues in 2405.2.

• Azure Stack HCI OEM license: Starting this release, we are introducing the Azure Stack HCI OEM license designed for Azure Local hardware including the Azure Local Premier Solutions, Integrated systems, and Validated Nodes. This license remains valid for the lifetime of the hardware, covers up to 16 cores, and includes three essential services for your cloud infrastructure.

  For more information, see Azure Stack HCI OEM license overview and Azure Stack HCI OEM license and billing FAQ.

Features and improvements in 2405.1

This is primarily a bug fix release with a few improvements.

• Custom storage IPs for add and repair server scenarios: Starting this release, it's possible to add machines or repair machines to the Azure Local instance using custom IPs for the storage intent network adapters.
• Improved outbound connectivity check: Starting this release, improvements were made to the outbound connectivity requirement validation in the environment checker.
• Reliability improvements were made in this release for partner health checks implemented in their Solution Builder Extensions.
• Rotation of Arc Resource Bridge (ARB) service principal credentials: Starting this release, you can rotate the service principal credentials used by ARB.
• Multiple bug fixes related to Updates were made in this release.

For more information on bug fixes, see the Fixed issues list.

Features and improvements in 2405

Here are the features and improvements in this release.

Deployment changes

• Active Directory integration - In this release, an issue related to the use of a large Active Directory that results in timeouts when adding users to the local administrator group, is fixed.

• New Azure Resource Manager (ARM) template - This release has a new ARM template for deployment that simplifies the resource creation dependencies. The new template creation also includes multiple fixes around the missing mandatory fields.

• Secret rotation improvements - In this release, improvements were made to the secret rotation flow.

  • The secret rotation PowerShell command Set-AzureStackLCMUserPassword now supports a new parameter to skip the confirmation message. This parameter is useful when automating secret rotation.
  • Reliability improvements were made around the services not restarting in a timely manner.

• Solution Builder Extension (SBE) improvements include:

  • A new PowerShell command to update the Solution Builder Extension partner property values is provided at the time of deployment.
  • Fixing an issue that prevents the update service to respond to requests after a Solution Builder Extension only update run.

• Add server and Repair server fixes include:

  • An issue that prevents a node from joining Active Directory during the add server operation.
  • Enabling deployment when a disjoint namespace is used.

• Reliability enhancements include:

  • Changes for Network ATC when setting up the host networking configuration with certain network adapter types.
  • Changes when detecting the firmware versions for disk drives.

• This release contains a fix for a deployment issue that is encountered when setting the diagnostic level in Azure and the device.

For more information, see the Fixed issues list in 2405.

Updates changes

This release contains the following changes for updates:

• Starting this release, an adjusted naming schema is introduced for updates. This schema allows for the identification of feature versus cumulative updates.

• This release contains reliability improvements:

  • For the update notifications for health check results sent from the device to Azure Update Manager. In certain instances, the message size was too large and results weren't shown in the Update Manager.
  • For reporting the cluster update progress to the orchestrator.

• This release has bug fixes for various issues including:

  • A file lock issue that could cause update failures for the trusted launch VM agent (IGVM).
  • An issue that prevented the orchestrator agent from restarting during an update run.
  • A rare condition where the update service took a long time to discover or start an update.
  • An issue for Cluster-Aware Updating (CAU) interaction with the orchestrator when an update in progress is reported by CAU.

For more information, see the Fixed issues list in in 2405.

Environment checker changes

In this release, changes to the environment checker include several new checks:

• A new check is added to ensure the inbox drivers on the physical network adapters aren't in use. The provided OEM or manufacturer latest drivers must be installed before deployment.
• A new check is added to ensure the link speed across physical network adapters on the same intent is identical.
• A new check is added to ensure RDMA is operational on the storage network adapters before deployment.
• A new check is added to validate the infrastructure IP addresses defined during deployment have outbound connectivity and can resolve the DNS.
• A new check is added to ensure the DNS server value isn't empty on the management IP address.
• A new check is added to make sure that there's only one IP address on the management network adapter.
• A new check is added to ensure that the minimum bandwidth required for RDMA storage adapters is at least 10 Gb.
• Check that the uplink connectivity in any physical network adapters assigned to Network ATC intents is up.
• Improved the ability to handle adapters that don't expose the VLAN ID field correctly.

Observability changes

This release contains the following improvements to observability:

• When starting a log collection, a warning message now advises you to limit the log collection to 24 hours.
• Deployment logs are automatically collected by default.
• The newly added Test-observability feature validates whether the telemetry and diagnostic data can be successfully sent to Microsoft.

Arc VM management changes

• This release contains new documentation that provides guidance on VM image creation starting with a CentOS image or a Red Hat Enterprise Linux (RHEL) image. For more information, see:
  • Prepare CentOS Linux image for Azure Local virtual machines (preview).
  • Prepare Red Hat Enterprise image for Azure Local virtual machines (preview).

Azure portal, extensions, and resource provider changes

Here are the changes related to the Azure portal, extensions, and resource providers:

• In this release, an issue was fixed that prevented from showing a failed deployment in the Cluster overview when the deployment was canceled.
• The Retry button in Azure portal is renamed to Resume as the deployment continues from the step that it failed.
• The new clusters deployed in this release have resource locks enabled to protect against accidental deletion.
• This release changes the behavior to not delete the Arc server resources when the Azure Local resource is deleted.

Security changes

This release includes the following updates to the security documentation:

• The compliance score for Azure Local machine is 281 out of 288 rules even when all the hardware requirements for Secured-core are met. The View security baseline compliance in the Azure portal section now explains the noncompliant rules and the reasons for the current gap.
• The Security Baselines settings have been updated to 315 settings, including six removals and 1 addition. To view and download the complete list of security settings, see Security Baseline.
• Updated the Windows Defender Application Control section in the Security features for Azure Local, version 23H2 article.

AKS on Azure Local, version 23H2

For a list of the changes and improvements in AKS on Azure Local, version 23H2, see What's new in AKS on Azure Local, version 23H2.

2402 releases

The 2402 release train includes the following releases:

Features and improvements in 2402.4

This is primarily a bug fix release. See the Fixed issues list to understand the bug fixes.

Features and improvements in 2402.3

This is primarily a bug fix release. See the Fixed issues list to understand the bug fixes.

Features and improvements in 2402.2

This is primarily a bug fix release with a few enhancements. See the Fixed issues list to understand the bug fixes. Here's the list of enhancements:

• Region expansion - The following new regions are now supported on your Azure Local instance: Southeast Asia, India Central, Canada Central, Japan East, and South Central US. For more information, see Azure Local supported regions.
• Deployment changes - A permission check was added to the Azure portal deployment experience to check for sufficient permissions. For more information, see Deploy via Azure portal.
• Update changes - A notification banner was included in the update experience that informs you when the new updates are available. For more information, see Update your Azure Local instance via the Azure Update Manager.

Features and improvements in 2402.1

This is primarily a bug fix release. See the Fixed issues list to understand the bug fixes.

Features and improvements in 2402

This section lists the new features and improvements in the 2402 release of Azure Local, version 23H2.

New built in security role

This release introduces a new Azure built-in role called Azure Resource Bridge Deployment Role, to harden the security posture for Azure Local, version 23H2. If you provisioned a cluster before January 2024, then you must assign the Azure Resource Bridge Deployment User role to the Arc Resource Bridge principal.

The role applies the concept of least amount of privileges and must be assigned to the service principal: clustername.arb before you update the cluster.

To take advantage of the constraint permissions, remove the permissions that were applied before. Follow the steps to Assign an Azure RBAC role via the portal. Search for and assign the Azure Resource Bridge Deployment role to the member: <deployment-cluster-name>-cl.arb.

An update health check is also included in this release that confirms that the new role is assigned before you apply the update.

Changes to Active Directory preparation

Beginning this release, the Active Directory preparation process is simplified. You can use your own existing process to create an Organizational Unit (OU), a user account with appropriate permissions, and with Group policy inheritance blocked for the Group Policy Object (GPO). You can also use the Microsoft provided script to create the OU. For more information, see Prepare Active Directory.

Region expansion

Azure Local, version 23H2 solution is now supported in Australia. For more information, see Azure Local supported regions.

New documentation for network considerations

We're also releasing new documentation that provides guidance on network considerations for the cloud deployment of Azure Local, version 23H2. For more information, see Network considerations for Azure Local.

Security changes

This release includes the following updates to the security documentation:

• Updated the documentation for Manage system security with Microsoft Defender for Cloud (preview).
• Updated the Security Baselines settings to 320 settings, including one removal, three additions, and one change about disabling Dynamic Root of Measurement (DRTM) for new deployments. To view and download the complete list of security settings, see Security Baseline.
• Published the Azure Local security book.

2311 releases

The 2311 release train includes the following releases:

Features and improvements in 2311.5

This is primarily a bug fix release. See the Fixed issues list to understand the bug fixes.

Features and improvements in 2311.4

This is primarily a bug fix release. See the Fixed issues list to understand the bug fixes.

Features and improvements in 2311.3

A new Azure built-in role called Azure Resource Bridge Deployment Role is available to harden the security posture for Azure Local, version 23H2. If you provisioned a cluster before January 2024, then you must assign the Azure Resource Bridge Deployment User role to the Arc Resource Bridge service principal.

The role applies the concept of the least amount of privileges and must be assigned to the Azure resource bridge service principal, clustername.arb, before you update the cluster.

You must remove the previously assigned permissions to take advantage of the constraint permission. Follow the steps to Assign an Azure RBAC role via the portal. Search for and assign the Azure Resource Bridge Deployment role to the member: <deployment-cluster-name>-cl.arb.

Additionally, this release includes an update health check that confirms the assignment of the new role before applying the update.

Features and improvements in 2311.2 GA

This section lists the new features and improvements in the 2311.2 General Availability (GA) release for Azure Local, version 23H2.

Important

The production workloads are only supported on the Azure Local systems running the generally available 2311.2 release. To run the GA version, start with a new 2311 deployment and then update to 2311.2.

In this generally available release of the Azure Local, version 23H2, all the features that were available with the 2311 preview releases are also now generally available. In addition, the following improvements and enhancements are available:

Deployment changes

With this release:

• Deployment is supported using existing storage accounts.
• A failed deployment can be run using the Rerun deployment option that becomes available in the cluster Overview page.
• Network settings such as storage traffic priority, cluster traffic priority, storage traffic bandwidth reservation, jumbo frames, and RDMA protocol can all be customized.
• Validation must be started explicitly via the Start validation button.

For more information, see Deploy via Azure portal.

Add server and repair server changes

• Bug fixes in the Add server and Repair server scenarios. For more information, see the Fixed issues in 2311.2.

Arc VM management changes

In this release:

• Guest management is available via Azure CLI. For more information, see Enable guest management.
• Proxy is supported for Arc VMs. For more information, see Set up proxy for Arc VMs on Azure Local.
• Storage path selection is available during the VM image creation via the Azure portal. For more information, see Create a VM image from Azure Marketplace via the Azure portal.

Migration of Hyper-V VMs to Azure Local (preview)

You can now migrate Hyper-V VMs to Azure Local using Azure Migrate. This feature is currently in Preview. For more information, see Migration of Hyper-V VMs using Azure Migrate to Azure Local (preview).

Monitoring changes

In the Azure portal, you can now monitor platform metrics of your cluster by navigating to the Monitoring tab on your cluster's Overview page. This tab offers a quick way to view graphs for different platform metrics. You can select any graph to open it in Metrics Explorer for a more in-depth analysis. For more information, see Monitor Azure Local through the Monitoring tab.

Security via Microsoft Defender for Cloud (preview)

You can now use Microsoft Defender for Cloud to help improve the security posture of your Azure Local environment and protect against existing and evolving threats. This feature is currently in Preview. For more information, see Microsoft Defender on Cloud for Azure Local (Preview).

Supported workloads

Starting with this release, the following workloads are generally available on Azure Local:

• Azure Kubernetes Service (AKS) on Azure Local. For more information, see Create Kubernetes clusters.

  In addition, AKS on HCI has a new CLI extension and Azure portal experience, Support for logical networks, Support for taints and labels, Support for upgrade via Azure CLI, Support for Nvidia A2 and more. For details, see What's new in AKS on Azure Local, version 23H2.

• Azure Virtual Desktops (AVD) on Azure Local. For more information, see Deploy AVD on Azure Local.

Features and improvements in 2311

This section lists the new features and improvements in the 2311 release of Azure Local, version 23H2. Additionally, this section includes features and improvements that were originally released for 2310 starting with cloud-based deployment.

Cloud-based deployment

For machines running Azure Local, version 23H2, you can perform new deployments via the cloud. You can deploy an Azure Local instance in one of the two ways - via the Azure portal or via an Azure Resource Manager deployment template.

For more information, see Deploy Azure Local instance using the Azure portal and Deploy Azure Local via the Azure Resource Manager deployment template.

Cloud-based updates

This new release has the infrastructure to consolidate all the relevant updates for the OS, software agents, Azure Arc infrastructure, and OEM drivers and firmware into a unified monthly update package. This comprehensive update package is identified and applied from the cloud through the Azure Update Manager tool. Alternatively, you can apply the updates using the PowerShell.

For more information, see Update your Azure Local instance via the Azure Update Manager and Update your Azure Local via the PowerShell.​

Cloud-based monitoring

Respond to health alerts

This release integrates the Azure Monitor alerts with Azure Local so that any health alerts generated within your on-premises Azure Local system are automatically forwarded to Azure Monitor alerts. You can link these alerts with your automated incident management systems, ensuring timely and efficient response.

For more information, see Respond to Azure Local health alerts using Azure Monitor alerts.

Monitor metrics

This release also integrates the Azure Monitor metrics with Azure Local so that you can monitor the health of your Azure Local system via the metrics collected for compute, storage, and network resources. This integration enables you to store cluster data in a dedicated time-series database that you can use to analyze data from your Azure Local system.

For more information, see Monitor Azure Local with Azure Monitor metrics.

Enhanced monitoring capabilities with Insights

With Insights for Azure Local, you can now monitor and analyze performance, savings, and usage insights about key Azure Local features, such as ReFS deduplication and compression. To use these enhanced monitoring capabilities, ensure that your cluster is deployed, registered, and connected to Azure, and enrolled in monitoring. For more information, see Monitor Azure Local features with Insights.

Azure Arc VM management

Beginning this release, the following Azure Arc VM management capabilities are available:

• Simplified Arc Resource Bridge deployment. The Arc Resource Bridge is now deployed as part of the Azure Local deployment. For more information, see Deploy Azure Local instance using the Azure portal.
• New RBAC roles for Arc VMs. This release introduces new RBAC roles for Arc VMs. For more information, see Manage RBAC roles for Arc VMs.
• New Azure consistent CLI. Beginning this preview release, a new consistent command line experience is available to create VM and VM resources such as VM images, storage paths, logical networks, and network interfaces. For more information, see Create Arc VMs on Azure Local.
• Support for static IPs. This release has the support for static IPs. For more information, see Create static logical networks on Azure Local.
• Support for storage paths. While default storage paths are created during the deployment, you can also specify custom storage paths for your Arc VMs. For more information, see Create storage paths on Azure Local.
• Support for Azure VM extensions on Arc VMs on Azure Local. Starting with this preview release, you can also enable and manage the Azure VM extensions that are supported on Azure Arc, on Azure Local Arc VMs created via the Azure CLI. You can manage these VM extensions using the Azure CLI or the Azure portal. For more information, see Manage VM extensions for Azure Local VMs.
• Trusted launch for Azure Arc VMs. Azure Trusted Launch protects VMs against boot kits, rootkits, and kernel-level malware. Starting this preview release, some of those Trusted Launch capabilities are available for Arc VMs on Azure Local. For more information, see Trusted launch for Arc VMs.

AKS on Azure Local, version 23H2

Starting with this release, you can run Azure Kubernetes Service (AKS) workloads on your Azure Local system. AKS on Azure Local, version 23H2 uses Azure Arc to create new Kubernetes clusters on Azure Local directly from Azure. For more information, see What's new in AKS on Azure Local, version 23H2.

The following Kubernetes cluster deployment and management capabilities are available:

• Simplified infrastructure deployment on Azure Local. In this release, the infrastructure components of AKS on Azure Local 23H2 including the Arc Resource Bridge, Custom Location, and the Kubernetes Extension for the AKS Arc operator, are all deployed as part of the Azure Local deployment. For more information, see Deploy Azure Local instance using the Azure portal (preview).
• Integrated infrastructure upgrade on Azure Local. The whole lifecycle management of AKS Arc infrastructure follows the same approach as the other components on Azure Local 23H2. For more information, see Infrastructure component updates for AKS on Azure Local (preview).
• New Azure consistent CLI. Starting with this preview release, a new consistent command line experience is available to create and manage Kubernetes clusters.
• Cloud-based management. You can now create and manage Kubernetes clusters on Azure Local with familiar tools such as Azure portal and Azure CLI. For more information, see Create Kubernetes clusters using Azure CLI.
• Support for upgrading a Kubernetes cluster using Azure CLI. You can use Azure CLI to upgrade the Kubernetes cluster to a newer version and apply the OS version updates. For more information, see Upgrade an Azure Kubernetes Service (AKS) cluster (preview).
• Support for Azure Container Registry to deploy container images. In this release, you can deploy container images from a private container registry using Azure Container Registry to your Kubernetes clusters running on Azure Local. For more information, see Deploy from private container registry to on-premises Kubernetes using Azure Container Registry and AKS Arc.
• Support for managing and scaling the node pools. For more information, see Manage multiple node pools in AKS Arc.
• Support for Linux and Windows Server containers. For more information, see Create Windows Server containers.

Security capabilities

The new installations with this release of Azure Local start with a secure-by-default strategy. The new version #has a tailored security baseline coupled with a security drift control mechanism and a set of well-known security features enabled by default. This release provides:

• A tailored security baseline with over 300 security settings configured and enforced with a security drift control mechanism. For more information, see Security baseline settings for Azure Local.
• Out-of-box protection for data and network with SMB signing and BitLocker encryption for OS and Cluster Shared Volumes. For more information, see BitLocker encryption for Azure Local.
• Reduced attack surface as Windows Defender Application Control is enabled by default and limits the applications and the code that you can run on the core platform. For more information, see Windows Defender Application Control for Azure Local.

Support for web proxy

This release supports configuring a web proxy for your Azure Local system. You perform this optional configuration if your network uses a proxy server for internet access. For more information, see Configure web proxy for Azure Local.

Removal of GMSA accounts

In this release, the Group Managed Service Accounts (gMSA) created during the Active Directory preparation are removed. For more information, see Prepare Active Directory.

Capacity management

In this release, you can add and remove machines, or repair machines from your Azure Local system via the PowerShell.

For more information, see Add server and Repair server.

ReFS deduplication and compression

This release introduces the Resilient File System (ReFS) deduplication and compression feature designed specifically for active workloads, such as Azure Virtual Desktop (AVD) on Azure Local. Enable this feature using Windows Admin Center or PowerShell to optimize storage usage and reduce cost.

For more information, see Optimize storage with ReFS deduplication and compression in Azure Local.

Next steps

• Read the blog announcing the general availability of Azure Local, version 23H2.
• Read the blog about What's new for Azure Local at Microsoft Ignite 2023.
• For Azure Local, version 23H2 deployments:
  • Read the Deployment overview.
  • Learn how to Deploy Azure Local, version 23H2 via the Azure portal.