Azure Stack Hub lets organizations run a subset of Azure services on-premises in their own datacenters. It uses the same Azure APIs, tools, and portal — but runs locally. Azure Stack Hub is designed for disconnected, sovereign, or compliance-restricted environments where data cannot leave the premises. EPC Group helps enterprises design and deploy Azure Stack Hub for government, healthcare, and regulated-industry clients. 29 years of Microsoft experience.
Key Facts
- Azure Stack Hub runs Azure-compatible APIs on-premises using the same Azure Resource Manager model.
- Designed for: air-gapped environments, data sovereignty requirements, compliance-restricted industries.
- Supported services: VMs, App Service, AKS, Event Hubs, Key Vault, Storage (blob, table, queue), SQL and MySQL database resource providers.
- Pricing: consumption-based (pay-as-you-go) or capacity model (per-node subscription). Requires OEM hardware.
- Not the same as Azure Stack HCI — Hub is a full Azure cloud in your datacenter; HCI is an on-premises hypervisor with Azure management.
- EPC Group: 29 years Microsoft consulting, 10,000+ enterprise deployments.
Azure Stack Hub Pricing and Features: Run Apps in an On-Premises Environment
Azure Stack Hub: Run Azure Apps in On-Premises Environments
Azure Stack Hub lets organizations run a subset of Azure services on-premises in their own datacenters. It uses the same Azure APIs, tools, and portal — but runs locally. Azure Stack Hub is designed for disconnected, sovereign, or compliance-restricted environments where data cannot leave the premises. EPC Group helps enterprises design and deploy Azure Stack Hub for government, healthcare, and regulated-industry clients. 29 years of Microsoft experience.
Key facts
- Azure Stack Hub runs Azure-compatible APIs on-premises using the same Azure Resource Manager model.
- Designed for: air-gapped environments, data sovereignty requirements, compliance-restricted industries.
- Supported services: VMs, App Service, AKS, Event Hubs, Key Vault, Storage (blob, table, queue), SQL and MySQL database resource providers.
- Pricing: consumption-based (pay-as-you-go) or capacity model (per-node subscription). Requires OEM hardware.
- Not the same as Azure Stack HCI — Hub is a full Azure cloud in your datacenter; HCI is an on-premises hypervisor with Azure management.
- EPC Group: 29 years Microsoft consulting, 10,000+ enterprise deployments.
What is Azure Stack Hub?
Azure Stack Hub is an on-premises extension of Azure. It delivers a subset of Azure cloud services from hardware you own — inside your datacenter.
Organizations use Azure Stack Hub when data sovereignty, compliance restrictions, or connectivity limitations prevent using the public Azure cloud. Common scenarios:
- Disconnected environments — Edge locations, military bases, or remote industrial sites with no reliable internet connectivity.
- Data sovereignty — Regulated industries or government agencies that cannot allow data to leave a specific country or facility.
- Latency-sensitive workloads — Applications that need cloud-like services but cannot tolerate the round-trip latency of a public cloud API.
- Compliance restrictions — Healthcare, financial, or defense workloads governed by regulations that require on-premises data processing.
Azure Stack Hub vs. Azure Stack HCI
These are different products that are often confused. Key differences:
| Feature | Azure Stack Hub | Azure Stack HCI | |---|---|---| | Purpose | Full Azure cloud experience on-premises | HCI virtualization with Azure management | | Azure APIs | Yes — same as public Azure | No — Arc management only | | App Service, Functions | Yes | No | | Marketplace | Azure Marketplace apps available | Not applicable | | Primary use case | Disconnected / sovereign cloud | On-premises VMs and Kubernetes | | Hardware source | OEM integrated systems (validated) | Validated HCI hardware (broader OEM support) | | Pricing model | Per-node subscription or pay-as-you-go | $10/core/month | | Kubernetes | AKS (Azure Kubernetes Service) | AKS Arc |Supported Azure Services on Azure Stack Hub
Azure Stack Hub supports a subset of Azure services. The most commonly deployed services:
- Virtual Machines — Windows Server and Linux VMs using the same Azure VM SKUs and sizes as public Azure.
- Azure App Service — Web Apps, API Apps, and Azure Functions running on-premises.
- Azure Kubernetes Service (AKS) — Managed Kubernetes on Azure Stack Hub hardware.
- Azure Event Hubs — Event streaming for IoT and telemetry workloads on-premises.
- Azure Key Vault — Secrets and certificate management on-premises.
- Azure Storage — Blob, table, and queue storage with the same Azure Storage APIs.
- SQL and MySQL resource providers — Managed SQL Server and MySQL databases on Azure Stack Hub.
- Azure Virtual Networking — VNets, subnets, NSGs, and load balancers.
Azure Stack Hub Pricing
Azure Stack Hub pricing has two components:
- Hardware — Purchased from OEM partners as integrated systems. Pricing depends on the OEM, node count, CPU, and storage configuration. Contact Azure Stack Hub OEM partners for hardware pricing.
- Software (the Hub subscription) — Two billing options:
- Pay-as-you-go — Pay for Azure Stack Hub services consumed (VM hours, storage). Similar to public Azure consumption billing.
- Capacity model — Per-node subscription. Fixed monthly cost regardless of resource consumption. Better for predictable workloads.
Disconnected Mode Operation
Azure Stack Hub can operate in disconnected mode — fully isolated from the internet. In disconnected mode:
- Azure Stack Hub registration is done once, then the system operates without Azure connectivity.
- Marketplace images must be downloaded at a connected facility and imported via offline marketplace syndication.
- Updates are applied via offline update packages downloaded at a connected facility and transferred to the Hub environment.
- Licensing is billed through annual capacity-based subscriptions (no real-time metering without connectivity).
EPC Group Azure Stack Hub Consulting
EPC Group helps government, healthcare, and regulated-industry enterprises design and deploy Azure Stack Hub environments. Our services include:
- Architecture design: hub topology, service enablement, and networking design.
- OEM hardware selection: identify the right Azure Stack Hub integrated system for your workload and datacenter requirements.
- Deployment: stamp installation, registration, and marketplace syndication.
- Compliance: HIPAA, FedRAMP, CMMC, and sovereign cloud controls.
- Application migration: move existing Azure or on-premises apps to Azure Stack Hub.
Frequently asked questions
What is Azure Stack Hub?
Azure Stack Hub is an on-premises extension of Azure. It delivers a subset of Azure cloud services inside your own datacenter using OEM-validated hardware. It uses the same Azure APIs, tools, and portal as public Azure — but runs locally for disconnected or data-sovereign environments.
What is the difference between Azure Stack Hub and Azure Stack HCI?
Azure Stack Hub is a full Azure cloud in your datacenter — with App Service, AKS, Event Hubs, and Azure Marketplace. Azure Stack HCI is an on-premises hyperconverged infrastructure OS for VMs and Kubernetes, managed through Azure Arc. They serve different use cases and should not be confused.
What services run on Azure Stack Hub?
VMs (Windows and Linux), App Service (Web Apps, API Apps, Functions), AKS, Event Hubs, Key Vault, Azure Storage (blob, table, queue), SQL and MySQL database resource providers, and virtual networking. A subset of public Azure services, not the full catalog.
Can Azure Stack Hub run in disconnected mode?
Yes. Azure Stack Hub supports fully disconnected operation. Marketplace images and updates are imported via offline packages. Licensing uses annual capacity-based subscriptions that do not require real-time connectivity for metering.
Who uses Azure Stack Hub?
Government agencies with data sovereignty requirements, defense contractors in air-gapped environments, healthcare organizations with compliance restrictions, and industrial companies at remote sites with limited connectivity. Any organization that needs Azure-compatible services but cannot use the public cloud for regulatory or connectivity reasons.
Design your on-premises Azure environment
Talk to an EPC Group architect about Azure Stack Hub architecture, hardware selection, and compliance. Call (888) 381-9725 or request a 30-minute discovery call.
Why Organizations Choose EPC Group
EPC Group is a Houston-based Microsoft consulting firm with 29 years of enterprise implementation experience and over 10,000 successful deployments across Power BI, Microsoft Fabric, SharePoint, Azure, Microsoft 365, and Copilot. We serve organizations across all industries including Fortune 500, federal agencies, healthcare, financial services, government, manufacturing, energy, education, retail, technology, and global enterprises.
What sets EPC Group apart is our governance-first approach. Every engagement begins with a security and compliance assessment. Our team of senior architects brings hands-on delivery experience across HIPAA, SOC 2, FedRAMP, and CMMC environments. We own outcomes, not hours.
- Fixed-fee accelerators with predictable pricing and defined deliverables
- Senior architect engagement on every project, not rotating juniors
- Compliance-native delivery for regulated industries
- End-to-end coverage from strategy through 24/7 managed services
- 11,000+ enterprise engagements refined into repeatable, risk-controlled patterns
Call (888) 381-9725 or email contact@epcgroup.net for a free assessment.
Azure Architecture: 2026 Considerations for Azure Stack Hub Pricing And Features Run Apps In An On Premises Environment
Azure ExpressRoute pricing in 2026 follows a hybrid model: ExpressRoute Local ($0/mo metered + bandwidth) for in-region Azure egress, ExpressRoute Standard ($300/mo for 1Gbps + bandwidth) for cross-region access, and ExpressRoute Premium (+$300/mo) for global connectivity to all Azure regions and Microsoft 365 services. The decision tree turns into a $20K-$200K/year question for typical enterprise deployments.
Azure Landing Zones (Microsoft Cloud Adoption Framework) in 2026 are the de facto starting point for every enterprise Azure deployment. The Enterprise-scale landing zone deploys management groups, hub-spoke networking, Azure Policy initiative assignments, Azure Monitor + Log Analytics, and Microsoft Sentinel in a single Bicep/Terraform run; the compressed bootstrap that used to take 6-12 weeks of architect time can now finish in 4-7 days.
Decision factors EPC Group evaluates
- Azure Policy initiative assignment for Azure Government readiness
- Confidential Computing enclave evaluation for regulated workloads
- Enterprise-scale landing zone bootstrap via Bicep/Terraform
- Microsoft Defender for Cloud benchmark alignment
- Reservation + Savings Plan portfolio for predictable workloads
For a tailored read on this topic in your specific tenant, contact EPC Group at contact@epcgroup.net or +1 (888) 381-9725. Engagement options at /pricing.