Microsoft to End License-Included Azure VMware Solution Sales
New AVS deployments will no longer include bundled VMware licenses as Microsoft aligns with updated VMware licensing models.
Key Takeaways:
- Microsoft will stop selling license-included Azure VMware Solution for new customers on October 31, 2026.
- Existing customers must transition to VMware Cloud Foundation BYOL licensing before August 2027.
- Organizations should evaluate licensing, costs, and long-term virtualization strategies.
Microsoft is preparing to end sales of the license-included version of Azure VMware Solution (AVS), marking a significant change for organizations running VMware workloads in Azure. Starting on October 31, 2026, new customers will no longer be able to purchase AVS with VMware software licenses bundled into the service.
Azure VMware Solution (AVS) is an Azure service that allows organizations to run VMware-based workloads in Azure using familiar VMware technologies such as vSphere, vCenter, vSAN, and NSX without having to redesign or refactor their existing applications. It provides a dedicated VMware environment hosted and managed within Azure, which enables businesses to extend, migrate, or modernize their on-premises data centers while maintaining compatibility with their existing VMware tools, processes, and skills.
Microsoft moves Azure VMware Solution toward a BYOL model
Previously, Azure VMware Solution (AVS) allowed organizations to use key VMware technologies without purchasing the full VMware Cloud Foundation (VCF) stack. The existing AVS offering includes licenses for VMware vSphere, vCenter, vSAN, and NSX as part of the Azure service. However, Microsoft will stop providing these VMware licenses for new AVS deployments after the 2026 cutoff date.
“On August 30, 2027, as a result of the latest Broadcom VCF licensing change, the AVS license-included service will be retired. Customers currently using license-included Reserved Instance (RI) SKUs will be required to purchase portable Broadcom VCF Licenses and transition to an AVS VCF BYOL SKU or exit AVS prior to August 30, 2027, to avoid service disruption on August 31, 2027,” Microsoft explained.
Microsoft urges AVS customers to plan for VMware license changes
Microsoft is advising existing AVS customers to begin planning immediately, purchase appropriate VCF licenses, and complete migration to the BYOL model before service deadlines in 2027. Keep in mind that other major cloud providers have already adjusted their VMware offerings to align with Broadcom’s licensing requirements, which indicates that organizations across the cloud market are facing similar changes.
This move could increase complexity and potentially costs for organizations that rely on VMware in Azure. Companies must now manage VMware licensing separately and evaluate whether to remain on VMware, adopt VMware Cloud Foundation, or consider alternative virtualization platforms. This change is particularly significant for smaller customers, many of whom have already faced licensing and service disruptions since Broadcom acquired VMware.
Rabia has a master's degree in Software Engineering and she has years of experience writing professionally about Microsoft products and other technologies. Rabia has also written for OnMSFT.com as well as Windows Report. She is always up to date on t...