Azure VMware Solution: When it makes sense (and when it doesn’t)

If you’re running VMware infrastructure and considering a move to the cloud, you’ve probably come across Azure VMware Solution (AVS). But is it the right choice for your business?

Some organisations jump into AVS without fully understanding what they’re getting into—and others dismiss it when it could solve their biggest challenges. The truth is, Azure VMware Solution can be brilliant for some businesses and completely unnecessary for others.

In this guide, we’ll give you a clear picture of what AVS actually is, when it makes sense, what it costs, and what alternatives you should consider. By the end, you’ll know whether AVS deserves a place in your cloud strategy or if you’re better off looking elsewhere.

Azure VMware Solution is Microsoft’s way of letting you run your existing VMware workloads in Azure without having to redesign everything. It’s a way to lift your entire VMware environment and drop it into Microsoft’s cloud, where it runs on dedicated hardware just for you.

Unlike regular Azure VMs where you’re dealing with Microsoft’s hypervisor and management tools, AVS gives you the familiar VMware stack (vSphere, vSAN, NSX, and HCX) running on bare metal servers in Azure data centres. Your VMware admins can use the same tools and processes they already know, which is a massive relief for many IT teams.

The partnership between Microsoft and VMware means this isn’t some cobbled-together solution. It’s a first-party service from Microsoft, fully supported by both companies. You get Azure’s global infrastructure and compliance certifications combined with VMware’s proven virtualisation platform.

For businesses deeply invested in VMware, this brings a range of cloud benefits without the pain of re-platforming.

Not every firm using VMware needs AVS. Here’s when it actually makes sense:

• Data centre exit strategies: If you’re under pressure to vacate a data centre quickly—perhaps your lease is up or your hardware is end-of-life—AVS can be a lifesaver. With AVS, it’s possible to migrate hundreds of VMs in weeks rather than the months it would potentially take to refactor for native Azure.

• Disaster recovery requirements: Setting up a secondary data centre for disaster recovery is expensive and complex. With AVS, you can replicate your on-premises VMware environment to Azure and only pay for the compute when you actually need it during a disaster. The built-in HCX technology makes this surprisingly straightforward.

• Compliance and data sovereignty: Some industries have strict requirements about where data lives and how it’s managed. AVS runs on dedicated hardware that’s not shared with other customers, which can help meet isolation requirements. And with Azure’s extensive security and compliance safeguards, you’re often better positioned than in your own data centre.

• App modernisation runway: Not every application is ready for containers and microservices. AVS gives you a place to run legacy applications while you gradually modernise them. It’s a pragmatic approach that works well for businesses with networks of older systems.

• Mergers and acquisitions: When companies merge, consolidating IT infrastructure is always a headache. AVS can serve as neutral ground where you can quickly consolidate VMware environments from multiple organisations while you figure out the long-term strategy.

AVS isn’t particularly cheap. You’re essentially renting dedicated servers from Microsoft, so expect enterprise-grade pricing.

AVS is sold in nodes, with each node being a physical server. You need a minimum of three nodes to start, which ensures redundancy. As of 2025, expect to pay around £2,500-5,000 per node per month, though prices vary by region and commitment level.

What’s included:

• The hardware (compute, storage, networking)
• VMware licenses (vSphere, vSAN, NSX)
• Support from Microsoft and VMware
• Integration with Azure services

Hidden costs to watch out for:

• Bandwidth charges for data transfer
• Backup solutions (not included by default)
• Any additional Azure services you connect
• Migration costs (tools and professional services)

⠀Cost optimisation tips:

• Use reserved instances for predictable workloads (up to 50% savings)
• Right-size your clusters—don’t over-provision
• Consider hybrid use—keep some workloads on-premises
• Take advantage of Azure Hybrid Benefit if you have Windows Server licenses

Compared to maintaining your own data centre, AVS can actually save money when you factor in hardware refresh cycles, facilities costs, and staffing. But compared to native Azure VMs, you’re paying a premium for that VMware compatibility.

On the other hand, you can make use of various cost optimisation methods for Azure here, including Reserved Instances and Hybrid Benefit.

Availability zones

AVS supports deployment across availability zones in select regions, giving you infrastructure-level redundancy. This means your VMware environment can survive an entire data centre failure; something that could cost a fortune to implement on-premises.

Backup options

While AVS doesn’t include backup by default, you’ve got options:

• Traditional VMware backup tools work as expected

• Azure Backup integration for simplified management

• Third-party solutions from Veeam, Commvault, and others
• Native vSAN snapshots for quick recovery

You could consider a combination of Azure Backup for simplicity and an enterprise backup solution for more granular control.

Disaster recovery

Disaster recovery with AVS works well. VMware Site Recovery Manager works natively, whilst HCX provides built-in migration and DR capabilities that simplify the entire process. You can replicate from on-premises to AVS or between AVS regions, and crucially, test failovers without impacting production. The ability to do non-disruptive DR testing can be a game-changer for organisations with strict RTO/RPO requirements.

Azure migrate appliance

Microsoft provides purpose-built migration tools to smooth your journey to AVS. The Azure Migrate appliance discovers your VMware environment, assesses workloads for cloud readiness, provides cost estimates, and helps orchestrate the actual migration. The assessment phase is really important: it’ll tell you which workloads are suitable for AVS versus native Azure services.

So other than AVS, what are your options? Your alternatives are:

Using Azure VMs

Native Azure VMs are cheaper and more flexible, but require re-platforming. With AVS, you keep your existing VMware tools and processes, meaning you’ll have faster migration but at higher ongoing costs. Go with Azure VMs if you’re willing to learn new tools and potentially rebuild applications; migration is slower but delivers lower ongoing costs and better cloud-native features (e.g. integration with hundreds of Microsoft apps).

Lift and shift to native Azure

Lifting and shifting to regular Azure IaaS means converting VM formats, reconfiguring networking, updating operational procedures, and potentially making application changes. It’s more work upfront but gives you better long-term flexibility and cost optimisation opportunities. This approach suits organisations ready to embrace Azure’s native capabilities fully.

Staying on-premises

Keeping VMware in your data centre might make sense if you have predictable, stable workloads and recently invested in hardware. It’s also worth considering if you have specific regulatory requirements that mandate on-premises infrastructure or if you can manage the infrastructure efficiently with existing staff. If so, you’ll miss out on cloud scalability and other benefits like disaster recovery.

Other cloud providers’ VMware offerings

AWS, Google, and others offer similar solutions:

• VMware Cloud on AWS: More mature, generally more expensive

• Google Cloud VMware Engine: Competitive pricing, smaller footprint

• Oracle Cloud VMware Solution: Good for Oracle workloads

Although if you’re primarily invested in Azure services, AVS is clearly the one to go for.

Ideal organisations

AVS works best for enterprises with 500+ VMware VMs and significant investment in VMware skills and tools. These organisations typically have complex applications that aren’t easily modernised and regulatory requirements for dedicated infrastructure. If this sounds like you, AVS could provide the bridge you need to the cloud.

Industries that benefit most

Financial services tend to like AVS for its compliance and performance capabilities. Healthcare organisations appreciate the data isolation requirements it meets. Manufacturing companies often have legacy application dependencies that make AVS attractive, whilst retail businesses can use it to handle seasonal capacity requirements without over-provisioning year-round.

Size and complexity considerations

AVS makes less sense for smaller setups. Small businesses find the minimum costs prohibitive, whilst simple web apps end up over-engineered on the platform. If you’re starting a greenfield project, it’s better to go cloud-native from the start. And highly elastic workloads perform better (and cost less) on native cloud services that can scale more granularly.

Skills and resources needed

Don’t underestimate the expertise you’ll need. Your team needs solid VMware administration skills combined with Azure networking knowledge. Hybrid cloud architecture experience becomes crucial when connecting on-premises and cloud environments. Strong capacity planning capabilities help avoid over-provisioning and manage costs effectively. Without these skills in-house, you’ll need to factor in training or consulting costs.

Let’s talk about when to avoid AVS.

In some scenarios, AVS is a magic solution that lets you move to the cloud without changing anything, but that mindset can lead to expensive mistakes. Sometimes the best decision is recognising when AVS would be like using a sledgehammer to crack a nut—technically possible, but completely unnecessary.

It’s overkill when:

• You have fewer than 50 VMs
• Your applications are easily containerised
• You’re already cloud-native
• Cost is your primary concern

⠀Better alternatives exist for:

• New application development (use Azure PaaS)
• Simple lift and shift (use Azure VMs)
• Temporary workloads (use Azure spot instances)
• Dev/test environments (use Azure DevTest Labs)

Common misconceptions

We need to address some myths about AVS. “AVS will save us money” is rarely true versus native Azure—you’re paying for compatibility, not cost savings. And it’s not just like on-premises VMware; this catches people off guard when networking and storage behave differently in the cloud environment.

Another dangerous assumption is that you should use it for everything—in reality, hybrid approaches often work better, with some workloads on AVS and others on native Azure services.

Finally, the idea that migration will be simple and easy is a bit of an unrealistic expectation. Even with familiar tools, plan for 3-6 months minimum to properly assess, migrate, and optimise your environment.

Before jumping into AVS, take a step back. The pressure to move to the cloud can make organisations rush into decisions they later regret. A methodical approach now will save headaches and budget overruns later.

Start with the fundamentals. Ask these five questions to cut through the noise and get to what really matters:

1. What’s driving your cloud migration?
2. How many VMs need to move?
3. What’s your modernisation timeline?
4. Can your team manage hybrid infrastructure?
5. What’s your 3-year TCO comparison?

If you can’t answer these confidently, you’re probably not ready for AVS yet—and that’s perfectly fine. Better to pause now than course-correct later.

Assessment checklist

A thorough assessment prevents nasty surprises. Work through this checklist systematically before you kick things off:

• Make inventory of current VMware environment
• Identify transformation candidates
• Calculate current infrastructure costs
• Assess application dependencies
• Evaluate skills gaps
• Compare migration approaches
• Build business case

Don’t skip the dependencies assessment—it’s where many migrations hit unexpected snags. That legacy app that “nobody uses” might turn out to be critical.

Timeline considerations

Be realistic about timescales. Here’s what to expect with an AVS transition:

• Assessment: 2-4 weeks
• Pilot migration: 4-6 weeks
• Full migration: 3-12 months
• Optimisation: Ongoing

Rushing the assessment leads to poor decisions. Skipping the pilot means learning expensive lessons in production. And optimisation isn’t a one-off task—it’s an ongoing process of right-sizing and cost management.

Azure VMware Solution is a powerful tool, but it’s not a silver bullet. For organisations with large VMware investments and complex requirements, it can provide a useful path to the cloud. For others, native Azure services or alternative approaches might serve you better.

Think about your applications, your team’s skills, your business constraints, and your long-term goals. With these in mind, AVS might be the perfect bridge to the cloud, or it might be an expensive detour.

Still unsure whether Azure VMware Solution fits your cloud strategy? Get in touch with our team for an honest assessment of your options. We’ll help you cut through the complexity and find the right path forward—whether that includes AVS or not.