Azure Stack HCI is a hardware appliance that allows businesses to run their own private cloud infrastructure on their own servers. It is designed for companies that want to keep their data and applications on-premises (i.e., not in the public cloud). With Azure Stack HCI, companies can create their own cloud-like environment for their applications and data, but with the added benefits of Azure services, such as backup, monitoring, and security.

Azure Stack HCI solution overview - Azure Stack HCI | Microsoft Learn

Azure Arc, on the other hand, is a hybrid cloud management service that allows companies to manage and govern resources across multiple cloud environments, including Azure, AWS, and Google Cloud. With Azure Arc, companies can use Azure’s management tools and services to manage resources that are running outside of Azure, without having to switch between different management tools.

A closer look at Azure Arc enabled servers - Microsoft Community Hub

Together, Azure Stack HCI and Azure Arc can help companies build a hybrid cloud infrastructure that is flexible, scalable, and secure. Companies can use Azure Stack HCI to create their own private cloud environment, while Azure Arc allows them to manage and govern resources across different cloud environments, including public clouds like Azure, AWS, and Google Cloud.

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