Microsoft Leads in Distributed Hybrid Infrastructure

Key points

• Microsoft has been named a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure for the third year in a row, recognizing its impact in helping organizations run workloads across hybrid, edge, multicloud, and sovereign environments with Azure.
• Azure’s adaptive cloud approach, built on Azure Arc and Azure Local, brings the cloud model to every environment, enabling customers to run workloads seamlessly across distributed environments.
• Real-world customers such as Publix Employees Federal Credit Union, Delta Dental of California, and CDW are achieving significant benefits with Azure’s adaptive cloud approach, including improved performance, uptime, and compliance.

Microsoft has once again been recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure, a testament to the company’s commitment to delivering innovative solutions for organizations running workloads across hybrid, edge, multicloud, and sovereign environments with Azure. This is the third year in a row that Microsoft has received this recognition, and it reflects the impact the company is having in the industry.

At the heart of Microsoft’s success is Azure’s adaptive cloud approach, which recognizes that not every workload belongs in a hyperscale datacenter. Azure Arc and Azure Local are the two core technologies that enable this approach, bringing the cloud model to every environment. Azure Arc unifies on-premises and non-Azure resources through Azure Resource Manager, enabling services such as Azure Kubernetes Service (AKS), Microsoft Defender for Cloud, Azure IoT Operations, and Azure AI Video Indexer. Azure Local, on the other hand, leverages Azure Arc to bring Azure services and management to customer-owned environments, enabling customers to run cloud-native workloads locally.

The benefits of Azure’s adaptive cloud approach are being realized by organizations across various industries. For example, manufacturers and industrial companies are deploying AI models at the edge to improve safety, quality, and automation, while managing them centrally in Azure. Regulated sectors such as financial services, healthcare, and government are maintaining compliance and data residency as they modernize with Azure. Enterprises with distributed sites are using a single management plane to connect operations, improve efficiency, and gain real-time insight across locations.

Real-world customers are achieving significant benefits with Azure’s adaptive cloud approach. For instance, Publix Employees Federal Credit Union consolidated operations using Azure Arc and Azure Local, reducing disaster recovery time to under 10 minutes per VM. Delta Dental of California modernized its core payor system with containerized workloads, improving performance, uptime, and compliance. CDW migrated 800 virtual machines to Azure Local, doubling SQL performance and strengthening governance and security with Azure Policy and Microsoft Defender for Cloud.

As Microsoft continues to invest in making Azure more adaptive, secure, and capable across every environment, customers are shaping the future of cloud infrastructure. With Azure Local and Azure Arc, organizations can accelerate innovation and run workloads where they are needed most, while unifying operations, security, and innovation across every environment. The recognition from Gartner is an important milestone, but what matters most is the impact that Azure is having on customers’ businesses every day.

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