Box 1: A Log Analytics workspace
Send resource logs to a Log Analytics workspace to enable the features of Azure Monitor Logs.
You must create a diagnostic setting for each Azure resource to send its resource logs to a Log Analytics workspace to use with Azure Monitor Logs.
Box 2: Install the Azure Monitor agent
Use the Azure Monitor agent if you need to:
Collect guest logs and metrics from any machine in Azure, in other clouds, or on-premises.
Manage data collection configuration centrally
Reference:
https://docs.microsoft.com/en-us/azure/azure-monitor/essentials/resource-logs
https://docs.microsoft.com/en-us/azure/azure-monitor/agents/agents-overview#azure-monitor-agent