Hello Josh O Ai,
Azure Arc:
Azure Arc helps users to manage their cloud related resources across multiple environments (cloud & non cloud). It allows you to use the tools within Azure to manage resources that reside on-premises or in any other cloud provider's environment.
In Azure Arc, there are Arc enabled servers, Arc Kubernetes services, data services etc.. Refer MSDoc for overview of Azure Arc servers.
Azure Local VM Management:
In the similar way, you can refer MSDoc for Azure local VM services.
An Azure Local instance consists of a machine or a cluster of machines running the Azure Stack HCI operating system and connected to Azure. You can use the Azure portal to monitor and manage individual Azure Local instances as well as view all the deployments of Azure Local.
There are some limitations in both the servers and accordingly you can design and manage the server based on your requirement.
Hope this helps!
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