Configure Azure Local HCI with AVD

Requirements (plan before you touch anything)

Platform & versions

Identity

Licensing

Networking

User profiles

GPU (optional)

Build/validate the Azure Local (HCI) cluster

  1. Hardware & BIOS
    Validate in the vendor catalog; enable virtualization, TPM/Secure-core as required.

  2. Install Azure Local 23H2 on each node, then cluster and register to Azure (Arc). (If you’re labbing, Microsoft has a virtual deployment walkthrough.)

  3. Networking/storage
    Configure your VLANs, DCB if using SMB Direct, create S2D pool and CSV(s) for VM storage.

Prepare identity & RBAC

  1. AD DS
    Ensure domain controllers are reachable from the host VLANs. Create OU(s) and service groups for AVD hosts.

  2. Entra Connect (optional but common)
    Sync AD to Microsoft Entra ID for user auth/assignment in AVD.

  3. Azure RBAC
    Give your operators the necessary AVD roles (e.g., Desktop Virtualization Contributor) in the target subscription/resource group.

Prep networking for AVD & RDP Shortpath

  1. Outbound to AVD services from session hosts (per Microsoft service tags).

  2. Enable RDP Shortpath (managed/private networks):

Create AVD core objects (Azure)

  1. In the Azure portal, open Azure Virtual DesktopHost poolsCreate.

  2. Create Application group(s) (Desktop/RemoteApp) and a Workspace, then assign users/groups.

Note: Don’t mix session hosts on Azure and on Azure Local in the same host pool. Keep pools homogeneous. Azure Documentation

Deploy session-host VMs on Azure Local

  1. Golden image

  2. VM placement

  3. Register session hosts to AVD

  4. GPO/baseline

Configure FSLogix (profiles)

  1. Install FSLogix on the image or via software deployment.

  2. Create the profile share (Azure Files joined to AD, or on-prem SMB with proper NTFS/SMB permissions).

  3. Set FSLogix GPOs (e.g., VHDLocations, Enabled=1, container size/type VHDX, exclusions).

  4. Antivirus exclusions for FSLogix paths.

Enable/verify RDP Shortpath

Publish, test, and assign

  1. Publish Desktop/Apps to the app group(s).

  2. Assign users/groups to the app group.

  3. Test with Windows App / web client from a representative client network.

Monitoring, updates, and operations

Optional: GPUs on Azure Local for AVD

Quick command & policy pointers (drop-in)

Mixing Azure & Local session hosts in one host pool (not supported). Keep pools separate. Azure Documentation

High-level flow you can follow in order

  1. Build/validate HCI 23H2, Arc-register. Microsoft Learn

  2. Prep AD DS + (optionally) Entra Connect + RBAC. Microsoft Learn

  3. Open firewalls; enable/verify Shortpath (UDP 3390). Microsoft Learn

  4. Create AVD host pool, app group, workspace (Azure). Microsoft Learn

  5. Deploy session hosts on HCI (Win 11/10 multi-session), AD-join, install agents, register to host pool. Microsoft Learn

  6. Configure FSLogix and storage. Microsoft Learn

  7. Publish desktops/apps, assign users, test with Windows App. Microsoft Learn

  8. Enable diagnostics/Insights; set up update rings; monitor Shortpath health. Microsoft Learn