Microsoft Axes License-Included Azure VMware Solution Sales
Microsoft has announced that it will stop selling the license-included version of Azure VMware Solution (AVS) for new customers on October 31, 2026. This change marks a significant shift in the way organizations running VMware workloads in Azure manage their licenses.
Azure VMware Solution allows businesses 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. The service provides a dedicated VMware environment hosted and managed within Azure, enabling organizations to extend, migrate, or modernize their on-premises data centers while maintaining compatibility with their existing VMware tools, processes, and skills.
Microsoft will stop providing VMware licenses for new AVS deployments after the 2026 cutoff date. Existing customers must transition to VMware Cloud Foundation BYOL licensing before August 2027. Microsoft urges existing AVS customers to begin planning immediately, purchase appropriate VCF licenses, and complete migration to the BYOL model before service deadlines in 2027.
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.