Getting Started with Microsoft Azure VMware Solution (AVS)

As organizations modernize their infrastructure, many face a critical decision: migrate VMware workloads to the cloud using Azure VMware Solution (AVS) or refactor them for Azure-native services. This post walks you through what AVS is, how to set it up (with visuals), and how its costs compare to Azure-native alternatives.

What is Azure VMware Solution (AVS)?

AVS is a fully managed VMware environment hosted on Azure. It allows you to run VMware workloads natively on Azure without refactoring or rearchitecting your applications. It includes:

• vSphere, vSAN, NSX-T, and HCX

• Seamless integration with Azure services

• Support for hybrid scenarios with ExpressRoute

How to Set Up Azure VMware Solution

Step 1: Plan Your Deployment

Before deploying, gather:

• Azure subscription (EA, CSP, or MCA)

• Resource group and region

• CIDR block for private cloud (e.g., 10.175.0.0/22)

• Host type (e.g., AV36, AV52)

• Number of hosts (minimum 3)

Step 2: Create the Private Cloud

1. Register the AVS Resource ProviderGo to Subscriptions > Resource Providers, search for Microsoft.AVS, and click Register.

2. Create the Private CloudIn the Azure Portal:

   • Click Create a resource

   • Search for Azure VMware Solution

   • Fill in the required fields:

     • Subscription

     • Resource group

     • Region

     • Host type (e.g., AV36P)

     • Number of hosts (minimum 3)

     • CIDR block

   
   

3. Provisioning Time

   • Initial deployment: ~4 hours

   • Adding a host: ~1 hour

     
     

Step 3: Connect to Azure Virtual Network

Use ExpressRoute to connect AVS to your Azure VNet:

• Create or use an existing Virtual Network Gateway

• Request an authorization key from AVS

• Create a connection in the VNet Gateway using the key

Cost Comparison: AVS vs Azure-Native

Azure VMware Solution (AVS)

• Minimum 3-node cluster required

• Hourly pricing per node (varies by region and host type)

• Example: AV36P node ≈ $5.50–$7.00/hour

• Reserved Instances (1 or 3 years) offer up to 50% savings

• Azure Hybrid Benefit and free Extended Security Updates for Windows/SQL workloads

Estimated Monthly Cost (3 AV36P nodes):

• Pay-as-you-go: ~$12,000–$15,000/month

• 3-year reserved: ~$6,000–$8,000/month

Azure-Native Services

• Refactoring required (e.g., migrate VMs to Azure VMs, AKS, App Services)

• Lower operational cost but higher initial effort

• Example: Equivalent Azure VM (D16s v5) ≈ $1.50/hour

• No minimum node requirement

Estimated Monthly Cost (3 D16s v5 VMs):

• ~$3,200–$4,000/month

Scenario	Choose AVS	Choose Azure-Native
Quick lift-and-shift	✅	❌
Long-term cost savings	❌	✅
VMware skill reuse	✅	❌
App modernization	❌	✅

AVS is ideal for rapid migration with minimal disruption, especially for enterprises heavily invested in VMware. However, for cost optimization and modernization, Azure-native services are the better long-term strategy.