For organizations already invested in Microsoft, Azure is often the first destination considered when a Broadcom renewal lands. The key decision is whether you keep VMware running (on Azure VMware Solution) or leave it behind (native Azure). Each path has a different effort profile, a different cost curve, and a different answer to "are we actually off VMware?"
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AVS vs. native Azure
| Azure VMware Solution | Native Azure (IaaS) | |
|---|---|---|
| What runs | Full vSphere, vSAN, NSX on Azure bare metal | Standard Azure VMs on Hyper-V-based fabric |
| Migration method | HCX bulk move / live migration, no conversion | Azure Migrate replication and cutover |
| Effort | Low | Medium |
| Off VMware? | No, VMware licensing continues | Yes |
| Best for | Speed, DR, data-center exit on a deadline | Long-term Microsoft-native consolidation |
A common pattern is to land on AVS first to hit a renewal or data-center exit deadline, then selectively modernize workloads into native Azure over time. That sequencing buys speed now without locking out the cleaner end state later.
The tools that do the work
- Azure Migrate. The free, first-party hub for discovery, dependency visualization, right-sizing recommendations, and agentless or agent-based replication of VMware VMs into native Azure.
- VMware HCX. Used with Azure VMware Solution for large-scale lift-and-shift, including bulk and live migration into the AVS private cloud.
- Azure Database Migration Service. Moves SQL Server and other databases into Azure SQL Database or Managed Instance with minimal downtime.
Cost and the Microsoft advantage
The migration project follows the usual per-VM math (see the migration cost guide). What sets Azure apart is how much existing Microsoft licensing can offset the run cost:
| Lever | Impact | Notes |
|---|---|---|
| Azure Hybrid Benefit | Major | Apply Windows Server and SQL licenses with Software Assurance to Azure or AVS |
| Reserved Instances (1/3 yr) | Up to ~40% (1-yr) or ~65% (3-yr) | Applies to native VMs and AVS nodes; combine with Hybrid Benefit for largest savings |
| Right-sizing at cutover | 20–40% typical | Azure Migrate flags over-provisioned VMware VMs |
| Egress and inter-region traffic | Watch closely | Hybrid and cross-region patterns add up fast |
A third option: Azure Local for on-premises Microsoft shops
Not every Microsoft shop wants to move workloads into the public cloud. Azure Local (formerly Azure Stack HCI) runs Hyper-V and Azure management services on your own hardware, managed through the Azure portal and Azure Arc. For organizations that need on-premises control, data-residency requirements, or low-latency proximity to operations, Azure Local is the path that keeps you in the Microsoft stack without pushing everything to Azure regions. It's consumption-billed per physical core per month through Azure, which makes the licensing model more predictable than a Broadcom renewal. See our VMware vs. Hyper-V comparison for the on-prem Microsoft path in detail.
The comparison nobody runs: staying on VMware for less
If the goal is to escape Broadcom pricing rather than to be on Azure specifically, price the managed-VMware option first. A VCSP provider keeps vSphere intact and can avoid a full re-platforming project. See our Azure VMware Solution pricing and migration guide and the full alternatives matrix for the side-by-side.
How to decide
Compare 3-year TCO, not migration price: status quo (Broadcom renewal × 3 plus hardware) against each Azure path (one-time migration plus run cost × 3, net of Hybrid Benefit). Run your numbers in the free cost calculator, or get a priced comparison across Azure, the other hyperscalers, and managed VMware with a free assessment. Once your path is set, use the migration timeline guide to build your project schedule and the migration checklist to track every pre-cutover step.
VMware to Azure migration FAQ
What is the difference between Azure VMware Solution and native Azure?
Azure VMware Solution (AVS) runs a full VMware vSphere stack on dedicated Azure bare-metal hosts, so you keep vCenter, vSAN, and NSX and move VMs with HCX without conversion. Native Azure migrates VMs into Azure IaaS using Azure Migrate, which removes VMware entirely but requires the workloads to run as standard Azure virtual machines. AVS is the lower-effort, faster path; native Azure is the cleaner long-term break from VMware.
Which tools migrate VMware to Azure?
Azure Migrate is the primary free tool for discovery, dependency mapping, and rehosting VMware VMs into native Azure. VMware HCX handles bulk lift-and-shift into Azure VMware Solution. Azure Database Migration Service moves SQL Server and other databases into Azure SQL or managed instances.
Does Azure Hybrid Benefit reduce VMware migration cost?
Yes. Azure Hybrid Benefit lets you apply existing Windows Server and SQL Server licenses with Software Assurance to Azure, cutting compute cost significantly on native Azure VMs and on Azure VMware Solution. Combined with reserved instances, it is one of the largest levers on Azure run cost.