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Updating Hydra for Azure Monitor's New DCR-Based Log Ingestion

Overview 

Microsoft has announced the retirement of the Azure Monitor Data Collector API. Beginning 14 Sept 2026, custom log ingestion must use Data Collection Rules (DCRs) instead. 

This change affects how Hydra sends operational data to the Azure Log Analytics Workspace deployed with Hydra. 

What This Means for Hydra Customers 

Hydra itself will continue to function normally, even if no action is taken. Your Azure Virtual Desktop and Windows 365 management capabilities are not affected. 

However, after 14 Sept 2026, Hydra versions that still use the retired Data Collector API will no longer be able to send operational data to the Log Analytics Workspace. 

This includes information such as: 

  • Host pool session statistics  

  • Scaling events  

  • Azure Files usage statistics  

  • Operational and diagnostic logs  

  • Other Hydra telemetry used for reporting and monitoring  

This is especially relevant for Managed Service Providers (MSPs) that use the Hydra Log Analytics Workspace for cross-tenant reporting and usage statistics. 

To continue collecting these statistics, Hydra must be updated to version 2.7 or later, and a new Azure Data Collection Rule (DCR) must be deployed. 

Note: If you deployed Hydra in 2026, you may have everything prepared. If you can find a Data Collection Rule already set up site-by-site in your Hydra installation, you can skip this process. 

Prerequisites 

Before starting, ensure that: 

  • Hydra is updated to version 2.7 or later (latest version recommended).

  • You have access to the Hydra Portal as a Hydra Full Administrator.

  • You have an Azure account with Owner permissions on the resource group containing the Hydra deployment.

Note: If your Hydra installation doesn't include the built-in Update Center/Update Engine (typically very early installations from 2021-2022), first follow the steps in Configuring Hydra Self-Management. 

Step 1: Updating Hydra 

Update Hydra to version 2.7 or later using the Hydra Update Center. 

If you can't update Hydra because the Update Center is missing or unavailable, continue with Configuring Hydra Self-Management first. 

Step 2: Deploying DCR (Data Collection Rule)

Hydra provides an automated deployment that creates and configures the required Azure resources. 

Starting the Deployment 

  1. Open the following URL in your browser:  https://<yourhydra>.azurewebsites.net/data/engine/dcr/start.html 

    1. For example: https://myhydra.azurewebsites.net/data/engine/dcr/start.html 

  2. Log in as a Hydra Full Administrator. 

Deploying to Azure 

  1. Click Deploy to Azure.  

  2. Sign in to Azure with an account that has Owner permissions on the Hydra resource group.  

  3. Select the Subscription containing your Hydra deployment.  

  4. Select the Resource Group containing your Hydra deployment.  

  5. Select the App Service that represents your Hydra installation (for example, myhydra).  

  6. Continue the deployment until Azure finishes creating the resources.  

Hydra validates your selections. If an incorrect Subscription, Resource Group, or App Service is selected, an appropriate error message is displayed. 

What the Deployment Creates 

The deployment creates a new Data Collection Rule (DCR) in the same resource group as Hydra. 

The DCR: 

  • Has the same name as your Hydra instance  

  • Is connected to the existing Log Analytics Workspace  

  • Configures the new DCR-based ingestion endpoint  

  • Assigns the required permissions  

Example: 

Hydra App Service 

Data Collection Rule 

myhydra 

myhydra 

Step 3: Restarting the Hydra Engine 

After Azure deployment completes, allow approximately 2 hours for the new configuration to propagate. You can still continue working with Hydra. 

Then, restart the Hydra Engine. To do this, in the Hydra Portal: 

  1. Click the Robot icon in the upper-right corner.  

  2. Select Restart Engine.  

Important: Only restart the engine when no deployments, image creations, provisioning jobs, or other automation tasks are currently running. 

After the restart, Hydra automatically begins sending data through the new DCR-based ingestion method. 

Step 4: Verifying Successful Operation 

You can verify that Hydra is writing data successfully by opening the associated Log Analytics Workspace. 

For this, run the following query: 

Hydra_HostPoolStatistics_CL 

| order by TimeGenerated desc 

If recent records appear after the engine restart, Hydra is successfully using the new DCR-based ingestion. 

Troubleshooting 

Deployment Reports a Permissions Error 

If the deployment cannot assign permissions or reports an authorization error, your Hydra installation may not be configured for self-management. 

Follow the instructions in Configuring Hydra Self-Management, then repeat the DCR deployment. 

Configuring Hydra Self-Management 

Some Hydra installations originally deployed during 2021-2022 may not have sufficient permissions to manage and update themselves. 

This typically results in: 

  • Missing Update Center  

  • A restart of Hydra in the Hydra Portal shows an error 

  • Update cannot be started 

  • DCR deployment failing while assigning permissions  

To resolve this: 

  1. Open the Azure Portal.  

  2. Navigate to the App Service hosting your Hydra installation.  

  3. Open Access control (IAM).  

  4. Select Add role assignment.  

  5. Assign the Contributor role.  

  6. As the member, select the Managed Identity of the Hydra App Service itself (for example, myhydra).  

Once the role assignment has propagated, the Hydra instance can manage its own Azure resources, including future updates and DCR deployment. 

FAQ 

What happens if I do not perform this update? 

Hydra continues to manage Azure Virtual Desktop and Windows 365 normally. 

However, after 14 Sept 2026, no new operational statistics or custom logs will be written to the Hydra Log Analytics Workspace. 

Does this affect existing Log Analytics data? 

No. 

Existing historical data remains available. Only the ingestion of new Hydra telemetry is affected. Please note: Don’t revert Hydra to a version earlier than 2.7. Older Hydra versions cannot ingest data using the DCR. 

Is a new Log Analytics Workspace required? 

No. 

Hydra continues to use the existing Log Analytics Workspace. Only the ingestion mechanism changes from the retired Data Collector API to the new DCR-based ingestion. 

Can I deploy the DCR manually? 

Yes. 

However, we strongly recommend using Hydra's automated deployment, as it creates the Data Collection Rule with the correct configuration, permissions, and connection to the existing Log Analytics Workspace. If you need to do it manually, contact our support at support@loginvsi.com. The DCR type must be “DIRECT.”

Summary 

To remain compatible with Microsoft's retirement of the Data Collector API: 

  1. Update Hydra to version 2.7 or later.  

  2. Deploy the new Data Collection Rule (DCR) using Hydra's automated deployment page.  

  3. Wait approximately 2 hours.  

  4. Restart the Hydra Engine.  

  5. Verify that new data is arriving in the Log Analytics Workspace.  

After these steps, Hydra will continue sending operational statistics and telemetry using Microsoft's supported DCR-based ingestion method beyond 14 Sept 2026.