Azure VMware Solution sits inside the Azure consumption envelope on the cover sheet. The license overlay sits outside it. Oracle, SQL Server, Windows Server, and VMware vSphere itself each bring a separate licensing decision into the AVS hosted estate.
Azure VMware Solution is a Microsoft hosted vSphere service running on dedicated Azure infrastructure. The host bill is Azure consumption. The Oracle, SQL Server, Windows Server, and VMware licenses sit on top. Each overlay carries its own contract clause.
The headline saving against an on premises vSphere refresh is twenty to thirty percent. The saving collapses to zero when the four overlays are priced badly. The buyer side response is to read every overlay before signing the AVS commit.
Read this article alongside the Microsoft knowledge hub, the Microsoft advisory practice, the Azure licensing reference, the Oracle on VMware reference, and the Vendor Shield subscription.
Azure VMware Solution runs on three host SKUs. AV36, AV36P, and AV52. The pricing scales with the host class. The reservation depth scales with the commitment.
| SKU | vCPU | RAM | Storage | On demand price |
|---|---|---|---|---|
| AV36 | 36 | 576 GB | 15.4 TB | ~$12 per host hour |
| AV36P | 36 | 768 GB | 19.2 TB | ~$15 per host hour |
| AV52 | 52 | 1.5 TB | 38.4 TB | ~$25 per host hour |
| AV64 | 64 | 1 TB | 20.4 TB | ~$20 per host hour |
Run the consumption math on the workload mix before signing. RAM bound estates favor AV36P. Compute bound estates favor AV64. Storage bound estates favor AV52. The SKU choice locks the reservation depth.
The AVS host bill is one cost line. Four license overlays drive the other half of the total cost of ownership.
| Overlay | Default option | Buyer side alternative | Saving |
|---|---|---|---|
| Windows Server | Pay as you go | Azure Hybrid Benefit | ~40% |
| SQL Server | Pay as you go | Azure Hybrid Benefit | ~55% |
| Oracle Database | Microsoft list | Bring your own license | Material, deal specific |
| VMware vSphere | Included | No alternative | N/A |
Azure Hybrid Benefit transfers the on premises Windows Server and SQL Server licenses into the Azure consumption envelope. Inside AVS the benefit applies cleanly to both workloads.
| Workload | Pay as you go cost | Hybrid Benefit cost | Annual saving |
|---|---|---|---|
| Windows Server VMs | $580K | $348K | $232K |
| SQL Server Enterprise | $1.8M | $810K | $990K |
| SQL Server Standard | $420K | $190K | $230K |
| Total annual saving | $2.8M | $1.35M | $1.45M |
Inventory the Software Assurance position before signing the AVS commit. Hybrid Benefit only works on licenses with active Software Assurance. The buyer side decision is to extend Software Assurance on the in scope workloads before the AVS cutover.
The Oracle cloud policy lists AWS and Azure under specific terms. Azure VMware Solution sits outside the named cloud authorized environments. The Oracle clause in the on premises agreement governs the licensing position.
The buyer side response is to read the cloud deployment clause in the Oracle master agreement and the partition policy interpretation. Oracle verbal comfort does not bind. The clause in writing is the only authoritative source. Run the partition policy review before any Oracle workload moves to AVS.
Reserved instances are the largest single lever on the AVS host bill. One and three year reservations release between thirty and fifty percent on the on demand SKU price.
The AVS deal carries six recurring traps. Each trap is contestable when the buyer side reads the agreement carefully before signing.
Azure VMware Solution is hosted vSphere on Azure consumption. The cost line on the bill is one figure. The total cost of ownership runs across four overlays. The buyer side response is to read every overlay before the AVS commit signs, not after.
The eight step checklist below is the buyer side starting position to plan the Azure VMware Solution deal.
Azure VMware Solution is Microsoft hosted vSphere running on dedicated Azure infrastructure. The customer manages the vSphere environment as on premises. Native Azure runs Hyper V and KVM under Microsoft management. AVS is the bridge for VMware estates that need to leave the data center without a full Azure refactor.
Azure Hybrid Benefit applies cleanly to Windows Server and SQL Server workloads running inside AVS. The on premises licenses must carry active Software Assurance. The benefit transfers the license cost out of the pay as you go consumption envelope and into the existing on premises commitment.
The Oracle cloud policy lists AWS and Azure but not Azure VMware Solution specifically. The Oracle clause in the on premises master agreement governs the licensing position. The buyer side response is to read the clause in writing, run the partition policy review, and document the position before any Oracle workload moves to AVS.
The vSphere license entitlement inside AVS sits inside the Broadcom commercial terms from the late 2024 transition. The host price did not change in the short term. The renewal clauses now reflect the Broadcom subscription model. Read the contract clauses at the next renewal carefully.
Three year reservations release roughly fifty percent against on demand pricing. One year reservations release roughly thirty percent. The right mix depends on the workload certainty. Base load on three year, peak on one year, overflow on demand is the typical pattern across enterprise accounts.
Redress runs Azure VMware Solution deals inside Vendor Shield, the Renewal Program, the Benchmark Program, and the Software Spend Assessment. The work covers the host SKU selection, the four overlays, the Azure Hybrid Benefit math, the reservation depth, the Oracle clause review, and the cutover calendar. Always buyer side, never Microsoft paid.
Redress runs Azure VMware Solution deals inside the Vendor Shield subscription, the Renewal Program, the Benchmark Program, and the Software Spend Assessment. Every engagement is led by a former Microsoft commercial executive on the buyer side.
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A buyer side reference on Microsoft EA, MCA E, Azure consumption, and Azure VMware Solution. Includes the four overlay review, the Azure Hybrid Benefit math, the reservation depth analysis, the Oracle clause review, and the cutover calendar.
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Open the Paper →Azure VMware Solution is hosted vSphere on Azure consumption. The cost line on the bill is one figure. The total cost of ownership runs across four overlays. The buyer side response is to read every overlay before the AVS commit signs.
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