You have an on-premises server named Server1 that runs Windows Server and has internet connectivity.

In the subscription, create: a Log Analytics workspace. On Server1, install: the Azure Monitor agent.

Azure Monitor collects and analyzes telemetry through Log Analytics workspaces, which are the destination data store for the logs and performance counters that monitored machines send. Because Server1 is on-premises but has internet connectivity, it does not need to be Arc-onboarded merely to send monitoring telemetry via Azure Monitor Agent (AMA) using Microsoft Entra-based or token authentication; the essential subscription-side resource that must exist first is the Log Analytics workspace that will store the collected data and against which data collection rules and queries are defined. On the server side, the Azure Monitor agent is the current, supported agent for collecting events, performance counters, and logs from Windows and Linux machines, whether they are Azure VMs, on-premises servers, or Arc-enabled servers, and forwarding that data to the configured Log Analytics workspace through an associated data collection rule. The distractor options do not fit this scenario: an Azure Files storage account and Azure SQL Database/Blob Storage accounts are unrelated data stores that Azure Monitor does not use as its telemetry destination; the Analytics gateway is a Power BI on-premises data gateway component, not a monitoring agent; and the Device Health Attestation server role is a Windows feature for validating device boot-time security state, unrelated to Azure Monitor telemetry collection. Creating the workspace and installing the Azure Monitor agent together is what is needed to monitor Server1.