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This article describes how to create an Arc virtual machine (VM) starting with the VM images that you created on your Azure Local instance. You can create Arc VMs using the Azure CLI, Azure portal, or Azure Resource Manager template.
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This article describes how to create an Azure Local virtual machines (VMs) starting with the VM images that you created on your Azure Local instance. You can create Azure Local VMs using the Azure CLI, Azure portal, or Azure Resource Manager template.
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## About Azure Local resource
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Use the [Azure Local resource page](https://portal.azure.com/#blade/HubsExtension/BrowseResource/resourceType/Microsoft.AzureStackHCI%2Fclusters) for the following operations:
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- Create and manage Arc VM resources such as VM images, disks, network interfaces.
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- View and access Azure Arc Resource Bridge and Custom Location associated with the Azure Local instance.
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- Provision and manage Arc VMs.
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- Create and manage VM resources such as VM images, disks, network interfaces.
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- View and access Azure Arc resource bridge and custom location associated with the Azure Local instance.
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- Provision and manage VMs.
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The procedure to create Arc VMs is described in the next section.
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The procedure to create VMs is described in the next section.
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## Prerequisites
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Before you create an Azure Arc-enabled VM, make sure that the following prerequisites are completed.
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Before you create an Azure Local VM, make sure that the following prerequisites are completed.
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# [Azure CLI](#tab/azurecli)
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---
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## Create Arc VMs
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## Create Azure Local VMs
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Follow these steps to create an Arc VM on your Azure Local.
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Follow these steps to create a VM on your Azure Local.
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# [Azure CLI](#tab/azurecli)
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1. Run the following commands to create the applicable VM.
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**To create a Trusted launch Arc VM:**
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**To create a Trusted launch Azure Local VM enabled by Azure Arc:**
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1. Specify additional flags to enable secure boot, enable virtual TPM, and choose security type. Note, when you specify security type as Trusted launch, you must enable secure boot and vTPM, otherwise Trusted launch VM creation will fail.
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The VM is successfully created when the `provisioningState` shows as `succeeded`in the output.
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> [!NOTE]
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> The VM created has guest management enabled by default. If for any reason guest management fails during VM creation, you can follow the steps in [Enable guest management on Arc VM](./manage-arc-virtual-machines.md#enable-guest-management) to enable it after the VM creation.
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> The VM created has guest management enabled by default. If for any reason guest management fails during VM creation, you can follow the steps in [Enable guest management on Azure Local VM](./manage-arc-virtual-machines.md#enable-guest-management) to enable it after the VM creation.
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In this example, the storage path was specified using the `--storage-path-id` flag and that ensured that the workload data (including the VM, VM image, non-OS data disk) is placed in the specified storage path.
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If the flag isn't specified, the workload (VM, VM image, non-OS data disk) is automatically placed in a high availability storage path.
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### Additional parameters for Windows Server 2012 and Windows Server 2012 R2 images
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When creating an Arc VM using Windows Server 2012 and Windows Server 2012 R2 images, specify the following additional parameters to create the VM:
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When creating a VM using Windows Server 2012 and Windows Server 2012 R2 images, specify the following additional parameters to create the VM:
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-`--enable-agent`: Set this parameter to `true` to onboard the Azure Connected Machine agent on Arc VMs.
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-`--enable-vm-config-agent`: Set this parameter to `false` to prevent the onboarding of the VM agent on the VM from the host via Hyper-V sockets channel. Windows Server 2012 and Windows Server 2012 R2 don't support Hyper-V sockets. In the newer image versions that support Hyper-V sockets, the VM agent is used to onboard the Azure Connected Machine agent on Arc VMs. For more information on Hyper-V sockets, see [Make your own integration services](/virtualization/hyper-v-on-windows/user-guide/make-integration-service).
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-`--enable-agent`: Set this parameter to `true` to onboard the Azure Connected Machine agent on VMs.
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-`--enable-vm-config-agent`: Set this parameter to `false` to prevent the onboarding of the VM agent on the VM from the host via Hyper-V sockets channel. Windows Server 2012 and Windows Server 2012 R2 don't support Hyper-V sockets. In the newer image versions that support Hyper-V sockets, the VM agent is used to onboard the Azure Connected Machine agent on VMs. For more information on Hyper-V sockets, see [Make your own integration services](/virtualization/hyper-v-on-windows/user-guide/make-integration-service).
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### Create a Linux VM
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Use this optional parameter **proxy-configuration** to configure a proxy server for your VM.
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Proxy configuration for Arc VMs is applied only to the onboarding of the Azure connected machine agent and set as environment variables within the guest VM operating system. Browsers and applications on the VM aren't necessarily all enabled with this proxy configuration.
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Proxy configuration for VMs is applied only to the onboarding of the Azure connected machine agent and set as environment variables within the guest VM operating system. Browsers and applications on the VM aren't necessarily all enabled with this proxy configuration.
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As such, you may need to specifically set the proxy configuration for your applications if they don't reference the environment variables set within the VM.
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> [!NOTE]
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> - Add at least one network interface through the **Networking** tab to complete guest management setup.
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> - The network interface that you enable, must have a valid IP address and internet access. For more information, see [Arc VM management networking](../manage/azure-arc-vm-management-networking.md#arc-vm-virtual-network).
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> - The network interface that you enable, must have a valid IP address and internet access. For more information, see [Azure Local VM management networking](../manage/azure-arc-vm-management-networking.md#arc-vm-virtual-network).
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1. In the VM proxy configuration section, to configure a proxy for your Arc VM, input the following parameters:
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1. In the VM proxy configuration section, to configure a proxy for your VM, input the following parameters:
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> [!NOTE]
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> Proxy configuration for Arc VMs is applied only to the onboarding of the Azure connected machine agent and set as environment variables within the guest VM operating system. Browsers and applications on the VM aren't necessarily all enabled with this proxy configuration. As such, you may need to specifically set the proxy configuration for your applications if they don't reference the environment variables set within the VM.
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> Proxy configuration for VMs is applied only to the onboarding of the Azure connected machine agent and set as environment variables within the guest VM operating system. Browsers and applications on the VM aren't necessarily all enabled with this proxy configuration. As such, you may need to specifically set the proxy configuration for your applications if they don't reference the environment variables set within the VM.
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:::image type="content" source="./media/create-arc-virtual-machines/arc-vm-proxy-configuration.png" alt-text="Screenshot of local VM administrator on Basics tab." lightbox="./media/create-arc-virtual-machines/arc-vm-proxy-configuration.png":::
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1. Replace the blank template with the template that you downloaded during the prerequisites step.
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This template creates an Arc VM. First, a virtual network interface is created. You can optionally enable domain-join and attach a virtual disk to the VM you create. Finally, the VM is created with the guest management enabled.
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This template creates an Azure Local VM. First, a virtual network interface is created. You can optionally enable domain-join and attach a virtual disk to the VM you create. Finally, the VM is created with the guest management enabled.
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```json
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{
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## Use managed identity to authenticate Arc VMs
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## Use managed identity to authenticate Azure Local VMs
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When the Arc VMs are created on your Azure Local via Azure CLI or Azure portal, a system-assigned managed identity is also created that lasts for the lifetime of the Arc VMs.
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When the VMs are created on your Azure Local via Azure CLI or Azure portal, a system-assigned managed identity is also created that lasts for the lifetime of the VMs.
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The Arc VMs on Azure Local are extended from Arc-enabled servers and can use system-assigned managed identity to access other Azure resources that support Microsoft Entra ID-based authentication. For example, the Arc VMs can use a system-assigned managed identity to access the Azure Key Vault.
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The VMs on Azure Local are extended from Arc-enabled servers and can use system-assigned managed identity to access other Azure resources that support Microsoft Entra ID-based authentication. For example, the VMs can use a system-assigned managed identity to access the Azure Key Vault.
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For more information, see [system-assigned managed identities](/entra/identity/managed-identities-azure-resources/overview#managed-identity-types) and [Authenticate against Azure resource with Azure Arc-enabled servers](/azure/azure-arc/servers/managed-identity-authentication).
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