Azure Stack HCI Pricing and Features: Hyperconverged Infrastructure Operating System

Azure Stack HCI: Pricing and Features Guide

Azure Stack HCI is Microsoft's hyperconverged infrastructure (HCI) operating system. It runs on validated hardware from OEM partners and provides on-premises virtualization with native Azure integration through Azure Arc. Azure Stack HCI pricing is $10/physical core/month. It includes Azure Hybrid Benefit for existing Windows Server licenses. EPC Group helps enterprises design, deploy, and operate Azure Stack HCI clusters. 29 years of Microsoft experience.

Key facts

• Pricing: $10/physical core/month. Azure Hybrid Benefit reduces cost for customers with existing Windows Server Datacenter licenses.
• Azure Stack HCI is designed specifically for HCI — it is not Windows Server with the HCI role.
• Feature updates are more frequent than Windows Server: GPU partitioning, stretched clustering, and Azure Arc VM management.
• Manages VMs, Kubernetes (AKS Arc), and Azure Arc-enabled services from the Azure portal.
• Compliance: HIPAA, FedRAMP, and SOC 2 configurations available with Azure Arc integration.
• EPC Group: 29 years Microsoft consulting, 10,000+ enterprise deployments.

What is Azure Stack HCI?

Azure Stack HCI is a hyperconverged infrastructure operating system from Microsoft. It runs on validated hardware from OEM partners like Dell, HPE, Lenovo, and others.

Unlike Windows Server with the HCI role, Azure Stack HCI is designed from the ground up for hyperconverged deployments. It receives feature updates more frequently than Windows Server. Recent additions include GPU partitioning, stretched clustering, and Azure Arc VM management.

Azure Stack HCI connects to Azure through Azure Arc. This gives you Azure-native management of on-premises workloads from the Azure portal.

Azure Stack HCI vs. Windows Server with HCI

| Feature | Azure Stack HCI | Windows Server HCI Role | |---|---|---| | Designed for HCI | Yes | Partial | | Update cadence | Faster (monthly) | Slower (annual/LTSC) | | Azure Arc integration | Native | Add-on | | GPU partitioning | Yes | Limited | | Stretched clustering | Yes | Limited | | Pricing | $10/core/month | Included in Windows Server license | | Azure Hybrid Benefit | Yes | N/A | | AKS Arc (Kubernetes) | Yes | Limited |

Key Features

• VM management — Create and manage Windows and Linux VMs on-premises using Hyper-V and Azure Arc VM management from the Azure portal.
• AKS on Azure Stack HCI (AKS Arc) — Deploy and manage Kubernetes clusters on-premises through the Azure portal. Use Azure Arc for GitOps-based configuration management. Connect to Azure Container Registry for image management.
• Storage Spaces Direct (S2D) — Software-defined storage using local drives on each cluster node. Provides RAID-like redundancy without a SAN or NAS.
• Software Defined Networking (SDN) — Azure Stack HCI includes Network Controller for VLANs, load balancing, and micro-segmentation on-premises.
• GPU partitioning — Share a physical GPU across multiple VMs or AKS pods for inference workloads without a dedicated GPU per workload.
• Stretched clustering — Active-active clusters across two sites for highest-availability configurations with automatic failover.
• Azure Arc-enabled services — Run Azure services (Azure Monitor, Defender, Policy) on Azure Stack HCI from Azure.

Azure Stack HCI Pricing

Azure Stack HCI pricing is based on physical cores in the cluster:

• Standard rate — $10/physical core/month. Includes the Azure Stack HCI OS, Azure Arc management, and access to Azure Hybrid Benefit.
• Azure Hybrid Benefit — Customers with active Windows Server Datacenter Software Assurance can run Azure Stack HCI at no additional cost for the HCI OS license. You still pay for Azure Arc services consumed.
• AKS Arc — AKS on Azure Stack HCI is free — no additional charge for running Kubernetes workloads on the cluster.

Hardware is purchased separately from OEM partners. Azure Stack HCI requires validated hardware configurations available in the Azure Stack HCI Catalog.

Compliance with Azure Stack HCI

Azure Stack HCI supports compliance-first deployments through Azure Arc integration. Key compliance controls:

• Azure Policy — Apply Azure Policy to on-premises Azure Stack HCI resources through Azure Arc. Same policies that govern cloud resources apply on-premises.
• Microsoft Defender for Cloud — Extend Defender coverage to Azure Stack HCI VMs and Kubernetes pods via Azure Arc.
• Azure Monitor — Collect performance and health telemetry from Azure Stack HCI clusters in the central Azure Monitor workspace.
• Encryption — BitLocker for data at rest on Storage Spaces Direct volumes. TLS for all management traffic.
• FedRAMP configurations — Azure Stack HCI used in government environments can meet FedRAMP controls when paired with Azure Government Arc connectivity.

EPC Group Azure Stack HCI Consulting

EPC Group helps enterprises design, validate, and deploy Azure Stack HCI clusters. Our engagement covers:

• Hardware selection: identify validated OEM configurations from the Azure Stack HCI Catalog for your workload requirements.
• Network design: Software Defined Networking, VLANs, and Azure Arc connectivity.
• Storage design: Storage Spaces Direct configuration for capacity, performance, and redundancy.
• AKS Arc: design and deploy Kubernetes clusters on Azure Stack HCI.
• Compliance: Azure Policy, Defender for Cloud, and Monitor configuration for HIPAA, SOC 2, or FedRAMP.

Frequently asked questions

What is Azure Stack HCI?

Azure Stack HCI is Microsoft's hyperconverged infrastructure operating system. It runs on validated OEM hardware and provides on-premises virtualization with native Azure Arc integration for management, monitoring, and policy enforcement from the Azure portal.

How much does Azure Stack HCI cost?

$10 per physical core per month. Customers with active Windows Server Datacenter Software Assurance can use Azure Hybrid Benefit to eliminate the HCI OS license cost. AKS Arc (Kubernetes on Azure Stack HCI) is free.

What is the difference between Azure Stack HCI and Windows Server with HCI?

Azure Stack HCI is purpose-built for HCI with faster updates, GPU partitioning, stretched clustering, and native Azure Arc integration. Windows Server with the HCI role is more general-purpose with slower updates. For new HCI deployments, Azure Stack HCI is the recommended choice.

Does Azure Stack HCI support Kubernetes?

Yes. AKS on Azure Stack HCI (AKS Arc) lets you deploy and manage Kubernetes clusters on your on-premises Azure Stack HCI cluster. AKS Arc is managed through the Azure portal and is free — no additional charge beyond the Azure Stack HCI cluster costs.

What hardware does Azure Stack HCI require?

Azure Stack HCI requires validated hardware from the Azure Stack HCI Catalog. OEM partners include Dell, HPE, Lenovo, Fujitsu, and others. Using validated configurations is required for Microsoft support and ensures Storage Spaces Direct reliability.

Design your Azure Stack HCI cluster

Talk to an EPC Group infrastructure architect about Azure Stack HCI cluster design, sizing, and compliance. Call (888) 381-9725 or request a 30-minute discovery call.