Microsoft’s LocalBox 25H2 update introduces Azure VM Spot pricing for cost savings, managed identity for enhanced security, and support for deploying client VMs and Azure Local instances in separate regions. It also adds dedicated PowerShell modules and various quality-of-life improvements for a seamless Azure Local sandbox experience. Unique :

Introducing LocalBox 25H2: The Next Leap in Azure Local Exploration
Microsoft just dropped the LocalBox 25H2 update, following last month’s rebranding buzz. This release is packed with fresh features and smart improvements designed for tech enthusiasts and Azure pros alike. LocalBox continues to simplify your sandbox experience, letting you dive into Azure Local’s full potential with just one click.
What’s New in LocalBox 25H2?
The headline feature? Support for Azure VM Spot pricing on the LocalBox Client VM. This means you can now tap into unused Azure capacity at a fraction of the cost. Perfect for test and dev workloads that can handle interruptions, Spot pricing slashes your operational expenses without compromising flexibility.
“By leveraging Spot pricing, users can significantly reduce their operational costs while maintaining the flexibility and scalability offered by Azure.”
Another biggie is the ability to deploy the LocalBox Client VM and Azure Local instance in separate regions. This flexibility solves capacity issues, especially in regions with tight vCPU quotas for the Standard E32s VM SKU. For example, you could deploy LocalBox in Norway East and Azure Local in Australia East seamlessly.
Major Updates You Should Know
Enhanced Security with Managed Identity
LocalBox ditched the old Service Principal Names (SPN) dependency in favor of Azure Managed Identity. This upgrade boosts security and aligns with Microsoft’s broader cloud identity strategy. It’s a cleaner, safer way to handle deployment authentication.
PowerShell Modules for Automation and Scalability
LocalBox now ships with dedicated PowerShell modules, including Azure.Arc.Jumpstart.LocalBox
. These modules improve script readability and maintenance, making automation smoother and more scalable. Plus, they’re cross-platform and published on the PowerShell Gallery.
“This is a big step toward better reusability and scalability for PowerShell in Jumpstart scenarios.”
Azure Local 2505 Base Image & OS Update
The update includes the Azure Local 2505 solution version with OS 26100.4061, unlocking new features like data disk expansion and live VM migration with GPU partitioning. Also, Dynamic Root of Trust for Measurement (DRTM) is now enabled by default, enhancing security for new deployments.
Quality of Life Improvements
Microsoft listened to user feedback and added handy tweaks: configurable VM start/shutdown sequences, clearer manual deployment instructions, Pester test logs in troubleshooting, and a Hyper-V Manager shortcut on the LocalBox Client VM desktop. These small touches make a big difference in day-to-day use.
Why You Should Care
LocalBox 25H2 isn’t just an update; it’s a smarter, more cost-efficient, and secure way to explore Azure Local. Whether you’re a developer, IT pro, or cloud architect, these enhancements streamline your workflow and reduce costs.
Ready to jump in? Check out the latest at aka.ms/JumpstartLocalBox and start experimenting with the new features today.
From the New blog articles in Microsoft Community Hub