A comparison of two different approaches to hybrid Kubernetes - a management overlay that extends Azure governance to existing clusters with Azure Arc versus a fully managed, unified multi-cloud Kubernetes platform with Cloudfleet
Azure Arc is a management and governance layer developed by Microsoft that extends Azure services to Kubernetes clusters running outside of Azure. It provides a single pane of glass in the Azure portal for viewing cluster status, applying Azure Policy, and deploying configurations via GitOps. Arc is designed for organizations that have already invested in the Azure ecosystem and want to bring their existing clusters under Azure governance.
Cloudfleet takes a fundamentally different architectural approach. Rather than adding a management overlay to existing clusters, Cloudfleet provides a fully managed Kubernetes platform where a single cluster spans multiple clouds and on-premises locations. This eliminates the need to manage separate clusters per environment and removes the operational burden of infrastructure lifecycle management.
Azure Arc is a software-based management layer from Microsoft that projects non-Azure resources into the Azure Resource Manager. For Kubernetes, this means you install a set of 10-11 agents into an existing cluster, which then report status, enforce policies, and sync configurations back to Azure. Azure Arc does not create or manage clusters. It does not provision nodes, handle Kubernetes version upgrades, manage networking, or scale infrastructure. These responsibilities remain entirely with you.
Azure Arc-enabled Kubernetes works by deploying a Helm chart that installs agents into an azure-arc namespace on your cluster. These agents require a minimum of 850 MB of memory and approximately 7% of a single CPU. They maintain outbound connectivity to multiple Azure endpoints, including management APIs, identity services, container registries, and data plane services. Air-gapped environments are not supported. If connectivity is lost for more than 90 days, the managed identity certificate expires and you must delete and recreate the Arc resource from scratch.
Setting up Azure Arc requires a multi-step onboarding process. You must register three Azure resource providers (which can take up to 10 minutes each), create a resource group, install the Azure CLI with the connectedk8s extension, and then run the connect command with cluster-admin privileges. The process installs 10-11 agent deployments including identity operators, config agents, metadata operators, metrics agents, and resource sync agents. For Azure RBAC integration on non-AKS clusters, you must additionally SSH into master nodes and manually edit kube-apiserver.yaml to mount webhook certificates.
Cloudfleet simplifies this entirely. Creating a cluster and adding nodes requires a single CLI command. No Kubernetes expertise is needed to get started. Cloudfleet handles the full lifecycle: control plane management, node provisioning, networking, security, and automated upgrades. Where Azure Arc adds a layer of complexity on top of existing infrastructure, Cloudfleet removes complexity by managing the infrastructure for you.
Azure Arc’s base pricing of $2 per vCPU per month (after the first 6 free vCPUs per subscription) appears affordable, but the real cost includes mandatory add-ons that most production deployments require. Microsoft Defender for Containers adds approximately $6.87 per vCore per month. Azure Monitor Container Insights charges roughly $2.76 per GB of ingested data, and even small clusters can generate gigabytes of logs per day. For a typical 80-vCPU deployment, the combined cost of Arc, Defender, and monitoring can reach $900 to $1,700 or more per month, not including the cost of running and maintaining the underlying clusters themselves.
Cloudfleet offers transparent, pay-as-you-go pricing with no hidden add-on fees. The Basic plan is free for clusters up to 24 vCPUs. The Pro plan includes the managed control plane, node provisioning, networking, monitoring, and support in a single predictable price. There are no separate charges for security, policy enforcement, or observability.
When comparing Azure Arc and Cloudfleet, the most important distinction is scope. Azure Arc is a governance overlay for existing clusters. Cloudfleet is a complete managed Kubernetes platform. The table below highlights how each platform addresses key requirements for hybrid and multi-cloud Kubernetes deployments.
| Features | |  |
|---|---|---|
Core architectureThe fundamental approach to managing multi-environment infrastructure. | A management overlay that connects existing, independent Kubernetes clusters to the Azure portal. Each cluster operates separately. Arc does not create clusters, provision nodes, or manage infrastructure. You must build and maintain all clusters yourself. | A fully managed Kubernetes platform that creates a single, unified cluster spanning multiple clouds and on-premises locations. Cloudfleet handles the control plane, node provisioning, networking, and lifecycle management. |
Secure cloud integrationThe method for accessing cloud provider APIs. | Uses Azure Managed Service Identity and Microsoft Entra ID for integration with Azure services. Accessing non-Azure cloud services requires manual credential configuration. Guard webhook certificates expire annually and must be manually rotated. | Integrates Workload Identity Federation for secure, keyless API access to any cloud provider, including AWS, GCP, and Azure. Eliminates static credentials and manual certificate rotation. |
Support modelThe scope and nature of available support. | Microsoft supports the Arc agents and Azure services. You are responsible for the underlying Kubernetes clusters, nodes, networking, storage, and OS maintenance. Support for non-Azure infrastructure components is not included. | Community support is included in the Basic tier. The Pro tier includes end-to-end support with SLAs covering the entire stack, from the control plane to infrastructure. Enterprise-grade support with a dedicated account team is available as an add-on. |
Pricing modelThe cost structure of the platform. | Base pricing of $2 per vCPU per month after 6 free vCPUs. Production deployments require additional paid services: Defender for Containers (~$6.87/vCore/month), Azure Monitor (usage-based, often $200-1,000+/month), and potentially Sentinel for SIEM. Total cost is difficult to predict and can escalate quickly. | Transparent, pay-as-you-go pricing. The Basic plan is free for clusters up to 24 vCPUs. The Pro plan includes the control plane, networking, monitoring, and support in a single price with no hidden add-on fees. |
Vendor neutralityThe ability to work across different infrastructure providers without vendor lock-in. | Can connect clusters from any provider to the Azure portal, but governance, identity, and policy management are tied to the Azure ecosystem (Entra ID, Azure Policy, Azure Monitor). This creates operational lock-in to Microsoft services even when infrastructure runs elsewhere. | Designed to work across all major cloud providers and on-premises infrastructure from a single control plane. Uses standard Kubernetes APIs without proprietary extensions, allowing you to avoid lock-in to any single vendor’s ecosystem. |
Management modelWho is responsible for managing the platform and its underlying components. | You are fully responsible for cluster creation, Kubernetes upgrades, node provisioning, scaling, OS patching, storage, load balancing, and networking. Azure Arc only provides a governance overlay on top of your self-managed infrastructure. | Fully managed service. Cloudfleet handles the entire lifecycle of the platform: control plane, node provisioning, automated upgrades, networking, scaling, and high availability. You focus on deploying applications. |
NetworkingHow the platform handles networking across clusters and environments. | Provides no networking capabilities between clusters. Each cluster operates as an isolated network. Cross-cluster or cross-cloud networking must be implemented separately using third-party tools, VPNs, or cloud-specific interconnects. | Comes with an encrypted, peer-to-peer WireGuard overlay network that enables secure communication across all environments out of the box. Supports multi-cloud and on-premises networking, including DNS-based global load balancing and service exposure. |
Data sovereigntyHow the platform addresses data residency and regulatory compliance requirements. | Requires persistent outbound connectivity to Azure endpoints, including global services like login.microsoftonline.com. Cluster metadata, compliance state, and telemetry are sent to Azure data centers. As a US-headquartered company, Microsoft is subject to the CLOUD Act, which grants US authorities extraterritorial access to data regardless of where it is stored. | Cloudfleet is a European company not subject to the US CLOUD Act. Supports running workloads exclusively on EU-based infrastructure providers such as Hetzner, OVHcloud, Scaleway, and Exoscale. Designed to help organizations meet GDPR, NIS2, and other European regulatory requirements. |
Cost optimizationHow the platform helps reduce infrastructure and operational costs. | Does not manage infrastructure, so cost optimization is entirely your responsibility. You must configure autoscaling, spot instances, and resource management for each cluster independently. Arc adds its own per-vCPU cost on top of your existing infrastructure expenses. | Built-in cost optimization through dynamic node auto-provisioning, automatic spot instance failover, workload-aware scheduling, and multi-cloud price arbitrage. Cloudfleet can provision the cheapest available compute across all supported providers. |
Azure Arc and Cloudfleet solve fundamentally different problems. Azure Arc is a governance and policy layer that connects existing Kubernetes clusters to the Azure portal. It does not create clusters, provision nodes, manage upgrades, or handle networking. You are responsible for the entire infrastructure lifecycle, and Arc adds visibility on top.
Cloudfleet takes a different approach. It provides a fully managed Kubernetes service where the control plane, node provisioning, networking, scaling, and upgrades are all handled for you. A single Cloudfleet cluster can span multiple cloud providers and on-premises environments without requiring separate clusters per location. This eliminates the operational overhead of managing infrastructure while giving you the flexibility to run workloads wherever it makes sense, whether on AWS, GCP, Hetzner, or your own data center.
For organizations evaluating hybrid Kubernetes platforms, the choice depends on what you need. If you already have Kubernetes clusters and want centralized Azure governance, Arc provides that visibility. If you want a managed platform that handles the full stack and removes the burden of cluster operations, Cloudfleet delivers a simpler, more integrated path to production.
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