Azure VMware Solution bundles VMware Cloud Foundation onto Microsoft hardware. The price depends on node type, term, and whose VCF license you use. Here is the buyer side read.
Azure VMware Solution looks like one Azure line item, but the real cost sits in the node hours, the reserved term, and the VMware Cloud Foundation entitlement underneath it.
Azure VMware Solution is billed per dedicated bare metal node per hour. You rent whole hosts, not virtual machines, so the number and type of nodes you reserve sets the floor on cost.
Each node ships a fixed core count, memory, and NVMe storage. Your job is to pack virtual machines densely enough that the per node rate divides into an acceptable per workload cost.
Microsoft publishes the current node rates on the Azure VMware Solution pricing page, and the service architecture sits in the Microsoft AVS documentation.
The node family decides your core to memory ratio. Memory bound estates and compute bound estates reserve very different families, and the wrong choice strands capacity you still pay for.
The node rate is not the whole bill. Several services meter separately and need their own line in the business case.
Azure VMware Solution cost components at a glance
| Component | Billed on | Discount lever | Surprise risk |
|---|---|---|---|
| Dedicated node | Per node per hour | One or three year reserved | Low once reserved |
| Egress | Per GB transferred | Architecture and caching | High |
| Managed storage | Per GB provisioned | Right size capacity | Medium |
| VCF entitlement | Included in node | Avoid separate VMware buy | Medium |
After Broadcom acquired VMware, perpetual VMware licenses stopped renewing and the portfolio moved to VMware Cloud Foundation subscription bundles. Inside AVS, that VCF entitlement is already included in the node price.
That bundling matters two ways. You should not buy a separate VMware subscription for AVS hosts, and you gain a credible alternative when Broadcom raises your on premises VCF quote.
When the on premises VCF renewal arrives with a steep increase, AVS gives procurement a documented exit path. Even when you do not move, a costed migration plan changes the on premises conversation.
Broadcom describes the VCF packaging on the VMware Cloud Foundation product page, and Microsoft confirms the included entitlement in its AVS guidance.
Teams that migrated mid term often kept paying a standalone VMware subscription for the same hosts now covered inside AVS. Audit the overlap and cancel the redundant entitlement at the next anniversary.
Reserved instances are the largest single lever on the node bill. Committing to one or three years of a node typically cuts the rate by 30 to 50 percent against pay as you go.
Reserve to your steady state, not your peak. Cover predictable baseline nodes with three year terms and absorb spikes on pay as you go so you never reserve idle capacity.
The standard pitch from both Microsoft and Broadcom partners is that lifting VMware into AVS is a like for like move that simply shifts cost from capital to operating budget. We disagree. In roughly two thirds of the AVS business cases we reviewed in 2024 and 2025, the per node model cost more than a right sized on premises VCF renewal once egress, managed storage, and low node utilization were priced honestly. The buyer side move is to model AVS at your real consolidation ratio, reserve only steady state nodes, and use the AVS quote as leverage on the on premises renewal rather than an automatic destination.
Source: Redress Compliance advisory engagement file, 2024 to 2025.
On Azure VMware Solution the node you never fill is the most expensive line on the invoice, and it hides in plain sight.
The renewal is where you recover stranded capacity. Bring utilization data per node, a clean egress forecast, and a costed on premises alternative. Microsoft and Broadcom both respond to evidence.
Maintain a current right sized VCF renewal quote even if you intend to migrate. The live alternative is what keeps both vendors honest at the table.
Azure VMware Solution is licensed per dedicated bare metal node per hour, not per virtual machine. You rent whole hosts that include the VMware Cloud Foundation entitlement, so node count, node family, and reserved term set your real cost rather than the number of workloads.
Yes. The VMware Cloud Foundation entitlement is bundled into the AVS node rate, so buying a separate VMware subscription for those same hosts is double paying. Audit any overlapping standalone VMware contract and cancel it at the next anniversary.
Reserved one or three year node commitments typically cut the rate by 30 to 50 percent against pay as you go. Reserve only steady state baseline nodes and keep spike capacity on pay as you go so you never commit to idle hosts.
Broadcom ended perpetual VMware license renewals and moved the portfolio to VMware Cloud Foundation subscription bundles. Inside AVS the VCF entitlement is included, and the AVS option now gives buyers a documented alternative when an on premises VCF renewal arrives with a steep increase.
Pick the family whose core to memory ratio matches your estate. Memory dense consolidation suits AV36P or AV52, balanced workloads suit AV36, and only genuine single cluster scale justifies AV64. The wrong family strands capacity you still pay for.
Egress, managed storage such as Azure NetApp Files, and third party backup or disaster recovery tooling all meter separately. These routinely add 10 to 25 percent on top of the node bill, so they belong in the business case from the start.
No. In many cases a right sized on premises VCF renewal costs less than AVS once egress, storage, and node utilization are priced honestly. Model both at your real consolidation ratio before committing rather than assuming AVS wins.
Keep a current costed AVS migration plan even if you intend to stay on premises. Presenting a credible exit path changes the on premises VCF renewal conversation and limits how far Broadcom can push the increase.
AVS node economics, the VCF bundling rules after the Broadcom acquisition, reserved term discounts, and the renewal levers that stop an over provisioned estate.
Used across more than five hundred enterprise engagements. Independent. Buyer side. Built for procurement leaders running the next renewal cycle.
