You create an Azure subscription.
You enable Azure Defender for the subscription.
You need to use Azure Defender to protect on-premises computers.
What should you do on the on-premises computers?
Security Center collects data from your Azure virtual machines (VMs), virtual machine scale sets, IaaS containers, and non-Azure (including on-premises) machines to monitor for security vulnerabilities and threats.
Data is collected using:
The Log Analytics agent, which reads various security-related configurations and event logs from the machine and copies the data to your workspace for analysis. Examples of such data are: operating system type and version, operating system logs (Windows event logs), running processes, machine name, IP addresses, and logged in user.
Security extensions, such as the Azure Policy Add-on for Kubernetes, which can also provide data to Security Center regarding specialized resource types.
https://docs.microsoft.com/en-us/azure/security-center/security-center-enable-data-collection
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