From November 1 2025 There will be significant changes to the VMware licensing model for hyperscalers, including the Azure VMware Solution (AVS). Broadcom has announced that customers will now have a own VMware Cloud Foundation (VCF) portable subscription You must purchase a VCF license to use AVS. This means Microsoft will no longer bundle a VCF license with AVS node purchases.
What exactly is changing?
- AVS customers must have their Buy VCF subscriptions directly from Broadcom and implement “bring your own license” (BYOL).
- This applies to all new AVS node purchases after October 15, 2025.
- PayGo nodes with license included can continue until October 31, 2026, without changes to product functionality.
- Reserved Instances (RI) Purchased before October 15, 2025, will remain valid until the end of the RI term.
Impact for customers
While Microsoft emphasizes that there no product changes While AVS remains a fully managed VCF private cloud service, this has several important implications for customers:
- Additional licensing costs and complexity
Customers must manage their own licenses through Broadcom. This can lead to additional costs or administrative hassle, especially for organizations using multiple AVS nodes or hybrid environments. - Strategic planning required
Organizations looking to purchase new AVS nodes or expand their current environment should plan ahead to avoid running out of a valid license. - Limitations on migration and scaling
The BYOL model can reduce flexibility in some cases, such as rapid expansions or temporary workloads. Customers should verify the compatibility of their VCF subscriptions before deploying new nodes.
What you can do as a customer
- Take inventory of your current AVS environmentWhich nodes run on bundled licenses and which on PayGo?
- Evaluate your Reserved Instances: Take advantage of existing RI terms and plan future purchases carefully.
- Consider license optimization: See if you can save costs by distributing or consolidating subscriptions more efficiently.
Closing note
Broadcom's changes to the VMware licensing model are licensing-related and do not change how AVS works. However, they can have a significant impact on costs, planning, and operational processes. Organizations that do not have their license management in order are at risk of higher costs and administrative challenges.
At BeSharp Experts we advise customers to gain timely insight into their AVS licenses and evaluate scenarios before November 2025. This will enable organizations to ensure a smooth transition and avoid unexpected costs or operational risks.