In the industrial sector, the divide between OT (Operational Technology) and IT remains one of the biggest barriers to digital innovation. PLCs, SCADA systems, and other industrial controllers run on closed networks, with their own protocols, timing, and a clear focus: stability, predictability, and safety.

At the same time, there's a growing demand for real-time data processing, AI applications, and smart automation. But collecting and analyzing data via the public cloud? For many factory environments, that's simply not an option. Constant internet connectivity isn’t always available, and strict requirements around latency and uptime apply.

Why is Azure Local a good fit for OT environments?

With Azure Local (formerly Azure Stack HCI), you bring the power of Microsoft Azure directly to your production floor. It provides a scalable, local platform for running virtual machines, containers, Kubernetes, and even edge AI workloads — all within your own OT network, without relying on the public cloud.

In practice, this means:

Direct integration with PLCs
Connect your PLCs using industrial protocols such as OPC UA, Modbus, or MQTT to edge gateways or IoT aggregators. These send real-time data to Azure Local, where workloads can filter, analyze, or route the data to other systems.

Run OT applications and IT services locally
Many HMI, SCADA, or MES systems can be virtualized within Azure Local — alongside IT services like Power BI, SQL, or a custom AI engine. This allows you to literally combine OT and IT in a single rack.

AI & Machine Learning on the factory floor
Run predictive models locally, right next to your data source. Think anomaly detection, predictive maintenance, or visual inspection via cameras — without cloud latency or data loss.

Air-gapped or semi-connected deployments
In environments where external connectivity is limited or prohibited, Azure Local offers full functionality in air-gapped mode. Synchronization with Azure can be done in controlled bursts or via metadata only.

Security & segmentation aligned with industrial standards
Azure Local supports OT segmentation best practices, such as those outlined in ISA/IEC 62443. This includes VLANs, role-based access control, on-prem logging, and conditional access via Azure AD integration.

Why is this relevant for manufacturers?

Because with Azure Local, you can:

• Maintain the continuity of your OT processes without compromise
  
• Still leverage modern IT insights and automation
  
• Move toward Industry 4.0 step by step — without disrupting your foundation
  

At XCES, we help manufacturers design, test, and implement Azure Local environments that work within the reality of the factory. No massive migration projects — just smart, focused steps, right next to your PLCs.

Looking for an environment where IT and OT truly work together — without inheriting each other’s risks? Then now is the time to seriously consider Azure Local.