Microsoft 365 launches an on-premise edition that wants to solve productivity issues for good

• Microsoft 365 Local is an entirely on-prem solution for data sovereignty requirements
• It's built on Azure Local and Microsoft's private sovereign cloud
• Redmond wants to provide "digital stability" for all regions

Microsoft has launched a new version of Microsoft 365 which runs entirely on-premises, designed for low-latency and high-security needs, running on Azure Local.

The company detailed how the update, in preview now before a wider launch later in 2025, enables workloads to be deployed within data centers or sovereign cloud environments – a response to the growing desire for more controlled environments globally.

By launching on-prem versions of M365, the company aims to improve security, compliance and governance, with a particular emphasis on European customers who need to comply with data sovereignty regulations.

M365 on-prem

Among the key components of Microsoft's sovereign cloud are a sovereign public cloud, a sovereign private cloud and national partner clouds.

The public version is available across all European data center regions and ensures that data remains in Europe, under European law, and is controlled by European workers only.

Taking it one step further, the private cloud uses Azure Local as a foundation for on-prem and partner-operated environments. It's targeted at organizations that need operational autonomy and air-gapped systems.

Finally, national partner clouds like France's Bleu and Germany's Delos Cloud are designed to further meet local sovereignty standard within the EU.

Microsoft 365 Local only runs on Azure Local – the underpinnings for Microsoft's private sovereign cloud.

"Microsoft 365 Local provides customers with additional choice by bringing together Microsoft’s productivity server software into an Azure Local environment that can run entirely in a customer’s own datacenter," the company explained.

Speaking about current "geopolitical volatility" and Microsoft's desire to provide "digital stability," EVP and Chief Commercial Officer Judson Althoff added.

"Microsoft is proud to offer the broadest set of sovereignty solutions available on the market today and we will constantly look for new ways to ensure our European customers have the options and assurances they need to operate with confidence."

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