From VMware NSX to Azure Local SDN: A Hands-On Transition to Azure Local
TL;DR – Quick Summary
Migrating from VMware NSX-T to Azure Local SDN offers a modern, cost-optimized, and hybrid-ready alternative. This guide walks IT professionals through architecture shifts, key differences, and practical considerations for deploying Azure Local with local SDN.
Why Leave VMware NSX-T Behind?
With the evolving cost models of VMware and increasing interest in hybrid cloud readiness, many organizations are re-evaluating their dependency on the NSX ecosystem. Microsoft’s Azure Local with SDN provides an attractive path forward—offering deep Windows Server integration, simplified operations, and Azure Arc extensibility.
Pain Point: Are you locked into expensive NSX licensing or Broadcom Bundles, or struggling to integrate with modern hybrid models? You’re not alone.
What Is Azure Local?
Azure Local is a hyper-converged infrastructure solution from Microsoft that combines:
- Windows Server-based Hyper-V
- Storage Spaces Direct (S2D)
- Azure-integrated management via Windows Admin Center and Arc
For networking, Azure Local leverages a native Local SDN stack, decoupling you from third-party dependencies like NSX-T.
Core Differences: VMware NSX-T vs Azure Stack SDN
| Feature | VMware NSX-T | Azure Stack SDN |
|---|---|---|
| Control Plane | NSX Manager + Controllers | Network Controller (Windows role) |
| Overlay Type | GENEVE | VXLAN (Windows Server 2022+) |
| Host Integration | vSphere (ESXi) | Hyper-V on Windows Server 2022 |
| Policy & Intent Management | NSX Distributed Firewall, NSGroups | SDN Policy via PowerShell/Windows Admin Center |
| Azure Integration | Limited | Native (Azure Arc, Azure Monitor, Defender) |
| Licensing | Premium, per-CPU | Included in Windows Server Datacenter |
Architecture Overview: Azure Local SDN
Azure Local SDN builds on three key components:
- Network Controller: The central policy engine and orchestration point
- Software Load Balancer (SLB): Provides L4 load balancing
- RAS Gateway: Enables VPN and BGP peering
Everything integrates via PowerShell, WAC, or SDN Express for streamlined deployment.
Deployment Highlights
Pre-Reqs:
- Windows Server Datacenter 2022
- Physical or virtualized Hyper-V nodes
- L2 connectivity between hosts (preferred)
- Management network on dedicated VLAN
SDN Deployment (PowerShell Sample):
# Sample: Install Network Controller
Install-WindowsFeature -Name NetworkController -IncludeManagementTools
# Sample: Create SDN Logical Network
New-NetworkControllerLogicalNetwork -Name "CorpNet" -Subnets @("10.10.10.0/24")
Consider using SDN Express to fast-track PoCs.
Real-World Tip: NSX to SDN Migration Gotchas
Final Thoughts: Embrace the Local SDN Future
VMware NSX-T is powerful but comes at a cost. For shops standardized on Windows, the Azure Local and SDN stack offers a viable path forward. Native integration with Azure Arc, Defender, and Monitor makes the transition smarter for hybrid-first enterprises.
*The thoughts and opinions in this article are mine and hold no reflect on my employer*