1 - Encrypt the on-premises VHD by using BitLocker without a TPM. Upload the VM to Azure Storage 2 - Run the Azure PowerShell command Set-AzureRMVMOSDisk 3 - Run the Azure PowerShell command Set-AzureRmVMDiskEncryptionExtension Reference: https://www.itprotoday.com/iaaspaas/use-existing-vhd-azurerm-vm