# VMware after Broadcom: Azure VMware Solution or native Azure VMs?

URL: https://computecloud.co.uk/blog/vmware-to-azure-after-broadcom/
Last updated: 2026-10-12
Published: 2026-10-12 by ComputeCloud Team

> VMware Broadcom renewal gone up? Compare migrating VMware to Azure VMware Solution or native Azure VMs on speed, cost, skills and risk, for UK organisations.

Broadcom's changes to VMware licensing have pushed many UK organisations to look at VMware alternatives. If Azure is on your list, you have two quite different routes. Here's how to choose.

## Key points

- **Azure VMware Solution (AVS)** runs your existing vSphere environment on dedicated hosts in Azure. It's the fastest exit, with minimal change.
- **Native Azure VMs** remove VMware entirely. Usually that's the lowest long-term cost and the simplest operating model.
- Many organisations **combine both**. Move most VMs natively and use AVS for workloads that are hard to move quickly.
- **Start 4–6 months before your VMware renewal** so you have a credible alternative, whether you move or renegotiate.

## What changed with VMware under Broadcom?

After Broadcom completed its acquisition of VMware, it moved customers from perpetual licences to subscription bundles, consolidated the product range and overhauled the partner programme. Many organisations reported substantially higher renewal quotes, especially smaller customers who no longer had access to the products they had been buying. Whatever your quote looks like, the renewal date has become a decision point.

There are several VMware alternatives, including Microsoft Hyper-V, Nutanix and open-source platforms such as Proxmox. If you're weighing up a move to the cloud rather than another hypervisor, this guide compares the two ways to migrate VMware to Azure.

## Route 1: Azure VMware Solution

AVS gives you a dedicated, Microsoft-managed VMware private cloud in Azure, with vSphere, vSAN and NSX on bare-metal hosts.

**Strengths**

- **Speed.** VMs move with VMware HCX, often live and without re-IP.
- **Familiarity.** Your team keeps using vCenter and existing runbooks.
- **Data-centre exit.** It's ideal when there's a hard deadline to leave a facility.

**Trade-offs**

- You pay for **whole hosts**, so efficiency depends on filling them.
- You still have a VMware dependency, and should check current licensing terms for AVS.

## Route 2: Native Azure virtual machines

Azure Migrate discovers VMs directly from vCenter (agentless) and replicates them to Azure VMs.

**Strengths**

- **No VMware licences** and no hosts to manage.
- **Pay per VM**, with the ability to right-size, shut down or reserve each one.
- **Full Azure integration**, including Azure Backup, Defender for Cloud and Azure Monitor.

**Trade-offs**

- Each VM is converted, so some **testing** is needed.
- Your team needs **Azure skills** rather than vSphere skills.

## Side-by-side

| Factor | Azure VMware Solution | Native Azure VMs |
|---|---|---|
| Time to exit | Fastest | Moderate |
| Change for IT team | Minimal | Moderate |
| Cost model | Per dedicated host | Per VM |
| Long-term cost | Higher for small estates | Usually lowest |
| VMware dependency | Yes | No |
| Best for | Hard deadlines, large or complex estates | Most small-to-mid estates |

## A practical approach: decide per workload

Rather than choosing one route for everything:

1. **Discover** all VMs with Azure Migrate and model both options.
2. **Rehost natively** the VMs that convert easily, which is usually the majority.
3. **Use AVS** for the awkward ones, such as appliances, complex networking or VMs you can't test in time.
4. **Revisit AVS workloads** after 12–24 months and move them natively when ready.

## Timing it against your renewal

| Months before renewal | What to do |
|---|---|
| 6 | Discovery and cost comparison |
| 4–5 | Decision, landing zone build, funding check |
| 2–4 | Migration waves |
| 0–1 | Final cut-overs; renew only what's left (if anything) |

If your renewal is closer than that, AVS or a short-term renewal for a reduced footprint can bridge the gap.

See our [VMware to Azure migration service](https://computecloud.co.uk/azure-migration/vmware/) or [get a free assessment](https://computecloud.co.uk/assessment/) to compare the options for your estate.

## Frequently asked questions

### How do I migrate VMware to Azure?

For native Azure VMs, deploy the Azure Migrate appliance in your vSphere environment, let it discover and assess your VMs agentlessly, then replicate them to Azure and cut over in planned waves. For Azure VMware Solution, deploy an AVS private cloud and move VMs across with VMware HCX, often live and without changing IP addresses.

### Is Azure VMware Solution cheaper than staying on-premises with VMware?

It depends on your hardware age, data-centre costs and renewal quote. AVS is billed per dedicated host, so it suits estates that fill hosts efficiently. For smaller estates, native Azure VMs are usually cheaper.

### Can I move VMware VMs to Azure without downtime?

With AVS and VMware HCX, VMs can be moved with live migration and minimal disruption, often without changing IP addresses. Rehosting to native Azure VMs with Azure Migrate involves a short planned cut-over per server.

### Do my Windows Server and SQL Server licences work on AVS?

Yes. Azure Hybrid Benefit applies to Windows Server and SQL Server running on AVS, and eligible older versions can receive Extended Security Updates at no extra cost.

### How long does it take to move off VMware?

For around 100 VMs, a native Azure rehost typically takes 2–4 months including discovery and landing zone. An AVS migration can be faster once the private cloud is deployed.

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