Microsoft named a Leader in the 2025 Gartner® Magic Quadrant for Distributed Hybrid Infrastructure

We’re thrilled to announce that Microsoft has once again been recognised as a Leader in the 2025 Gartner® Magic Quadrant for Distributed Hybrid Infrastructure. This marks the third consecutive year we’ve received this honour, underscoring our commitment to helping businesses manage workloads effortlessly across hybrid, edge, multicloud, and local environments with Azure.

Azure’s Adaptive Cloud: Powered by Azure Arc and Azure Local

Today, many organisations realise that not all workloads fit into a large datacentre. Azure’s adaptive cloud strategy acknowledges this and extends the cloud experience to all environments using two key technologies.

Azure Arc introduces Azure management capabilities to various settings, including on-premises datacentres, edge locations, and multicloud environments. It connects traditional resources through Azure Resource Manager and supports services like Azure Kubernetes Service (AKS), Microsoft Defender for Cloud, Azure IoT Operations, and Azure AI Video Indexer.

Azure Local applies Azure Arc to deliver Azure services and management within customer-owned infrastructures, allowing for the operation of cloud-native workloads such as virtual machines and Arc-enabled AKS on-site. It also plays a crucial role in Microsoft’s Sovereign Private Cloud strategy, ensuring operations remain compliant while retaining Azure’s benefits.

By combining Azure Arc and Azure Local, customers benefit from consistent governance, security, and management across diverse environments. This integrated approach accelerates innovation, enhances security, and supports scalable growth.

Transforming Industries in the Real World

The adaptive cloud methodology is particularly beneficial for businesses needing to juggle local operations with scalable cloud options. Industries, especially manufacturing and industrial sectors, are deploying AI at the edge to boost safety, quality, and automation, all managed centrally within Azure. Regulated industries like healthcare, finance, and government are upholding compliance and data residency as they evolve with Azure. Companies with multiple locations are using a single management framework to connect their operations, enhance efficiency, and access real-time insights across sites.

We’re witnessing a strong shift among customers across various sectors embracing Azure’s adaptive cloud, supported by Azure Arc:

• Publix Employees Federal Credit Union (PEFCU) improved their operations with Azure Arc and Azure Local, slashing disaster recovery times to under 10 minutes per VM, enabling engineers to focus more on innovation.
• Delta Dental of California upgraded their core payment system using containerised workloads, boosting performance, uptime, and compliance.
• CDW transitioned 800 virtual machines to Azure Local, doubling their SQL performance while reinforcing governance and security through Azure Policy and Microsoft Defender for Cloud.
• Coles and Emirates Global Aluminum (EGA) are leveraging Azure Local to run GPU-accelerated AI workloads that enhance analytics, improve customer experiences, and optimise manufacturing insights.

These organisations are using Azure’s adaptive cloud to manage their workloads effectively while streamlining operations, bolstering security, and driving innovation across all environments.

Collaborating for a Better Tomorrow

While receiving recognition from Gartner is a significant achievement for us, what truly matters is the progress our customers make with Azure every day. We are dedicated to further enhancing Azure to be more adaptive, secure, and capable across all settings, allowing companies to innovate on their own terms. We value the trust our customers place in us and are inspired by how they are redefining the future of cloud infrastructure with us.

Discover More

• Join us at Microsoft Ignite this November in San Francisco to delve into the latest enterprise innovations.

Gartner, Magic Quadrant for Distributed Hybrid Infrastructure, Julia Palmer, Jeffrey Hewitt, Dennis Smith, Tony Harvey, Elaine Zhang, 8 September 2025.

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