Cloud adoption is growing fast, but not every business is ready to move away from VMware-based infrastructure. Many companies still rely on VMware vSphere, vSAN, and NSX to run critical applications. Rebuilding everything from scratch for the cloud can be expensive, time-consuming, and risky.
That’s where Azure VMware Solution (AVS) comes in. Microsoft offers AVS to help businesses move their VMware workloads to Azure without major changes. The idea is simple: keep using VMware’s tools while benefiting from Azure’s cloud infrastructure.
But does it actually save money? Is it more efficient than staying on-premises or going fully cloud-native? In this article, we’ll break down the real benefits, hidden costs, and whether AVS is worth it for your business.
What Is VMware on Azure?
VMware on Azure, also called Azure VMware Solution (AVS), lets businesses run VMware workloads on Microsoft Azure’s cloud. It provides a fully managed environment where companies can use VMware vSphere, vSAN, and NSX without needing on-premises hardware.
This solution is designed for companies that already rely on VMware and want to extend or migrate their data centers without rebuilding their applications. It allows IT teams to keep using familiar VMware tools while integrating with Azure’s cloud services for added flexibility, security, and backup options.
Unlike moving to a fully cloud-native setup, AVS lets businesses lift and shift their VMware workloads as they are, reducing downtime and making cloud adoption easier.
Why Businesses Consider VMware on Azure
Many companies already use VMware and don’t want to rebuild their systems from scratch. Here’s why they consider running it on Azure:
✅ Seamless Migration – No need to refactor apps. Just move them to the cloud.
✅ Hybrid Flexibility – Keep VMware on-premises while integrating with Azure services.
✅ Cost Savings in Some Cases – No need to buy expensive new hardware.
✅ Security & Compliance – Azure’s security tools combined with VMware’s enterprise protection.
✅ Scalability – Easily add more resources without managing physical servers.
For businesses that aren’t ready to go fully cloud-native, AVS offers a smooth transition.
Potential Drawbacks & Hidden Costs
While AVS has benefits, there are also challenges:
❌ High Costs – You’re paying for both VMware and Azure infrastructure.
❌ Performance Issues – Running VMware inside Azure may cause latency delays for some workloads.
❌ Management Complexity – IT teams must manage two environments (VMware & Azure), which adds extra work.
❌ Not Always Cost-Effective – Over time, moving to Azure-native services may be cheaper than keeping VMware.
❌ Compatibility Concerns – Some VMware features may not work perfectly with Azure services.
While AVS makes migration easy, it doesn’t always reduce costs or complexity.
VMware on Azure vs. Other Cloud Options
If you're considering AVS, it's important to compare it with other choices:
🔹 VMware on AWS vs. Azure VMware Solution
VMware Cloud on AWS is directly managed by VMware, while AVS is a Microsoft service.
AWS might be better for companies already using AWS services.
AVS is better for those using Microsoft tools like Office 365 and Azure Active Directory.
🔹 Going Cloud-Native Instead of Using VMware on Azure
Azure has native services like Azure Virtual Machines, Azure Kubernetes Service (AKS), and serverless computing.
Cloud-native solutions eliminate VMware costs and take full advantage of Azure’s features.
If you're open to redesigning your applications, cloud-native is often the better long-term option.
🔹 Hybrid Cloud Alternatives
- Azure Arc allows businesses to manage on-prem VMware alongside cloud workloads, offering an alternative to AVS.
If your company is just starting with cloud, you should compare AVS with these other options before deciding.
When Does VMware on Azure Make Sense?
Not every business needs AVS. But it’s a great fit if:
✅ You already have a large VMware setup and don’t want to rebuild everything.
✅ You need a hybrid cloud approach, keeping some workloads on-prem and some in the cloud.
✅ You work in regulated industries where compliance and security make full cloud migration difficult.
✅ You need quick disaster recovery in case of on-prem server failures.
✅ You have legacy applications that can’t easily move to cloud-native services.
For companies deeply invested in VMware, AVS provides a low-risk path to cloud adoption.
When Should You Avoid It?
AVS isn’t always the best solution. You should think twice if:
❌ You’re starting fresh – Cloud-native services will be cheaper and more efficient.
❌ You’re on a tight budget – AVS has extra licensing and management costs.
❌ You need low-latency performance – Running VMware on Azure adds an extra layer that may slow things down.
❌ You don’t have VMware expertise – If your team isn’t experienced with VMware, managing both VMware and Azure could be a headache.
For many businesses, going fully cloud-native is a better long-term investment.
Final Verdict: Is It Worth It?
So, should you run VMware on Azure? It depends on your situation.
✅ Worth It If: You already use VMware and need a hybrid or gradual cloud migration.
❌ Not Worth It If: You’re looking for a cost-effective, long-term cloud strategy.
In short, if your business relies on VMware, AVS makes cloud adoption easier. But if you’re planning a full cloud transition, it’s smarter to go directly to Azure-native solutions instead.
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