Escape Broadcom Disruption Without Sacrificing Azure Commitments

Azure VMware Solution (AVS) with VMware bundled licenses refers to AVS SKUs, sold through 2025, which included VMware licensing. Broadcom's transition from an all-inclusive managed cloud service to a self-licensed model requires AVS customers in Microsoft Azure to bring their own VCF licenses (BYOL) rather than using Microsoft-bundled VMware subscriptions.

You may also see these licenses referred to as AVS with VCF included, AVS with VCF subscriptions included, AVS with bundled VCF subscription, AVS with VCF included RIs, and Azure VMware Solution RI with license included.

The retirement of legacy Reserved Instances (RIs) with bundled VMware licensing introduces a critical division point for organizations. Continuing to use Azure VMware Solution (AVS) after this retirement requires transitioning to a Bring Your Own License (BYOL) model, which carries four primary challenges:

• Risk of higher software TCO: Transitioning to the Broadcom BYOL model means organizations must purchase full VMware Cloud Foundation (VCF) subscription bundles, creating expensive shelfware for workloads requiring a subset of the VCF bundle.
• Meet tight transition deadlines: Continuing on AVS requires purchasing new BYOL SKUs and securing licenses from Broadcom before August 30, 2027, to avoid service disruption or potential loss of access.
• Undergo disruptive software upgrades: Transitioning to the BYOL model requires upgrading to VCF 9 by October 11, 2027 (when vSphere 8 reaches end of general support), which can introduce technical risk, operational overhead, and mandatory architectural resets.
• Accept ecosystem lock-in: Remaining on AVS with VFC BYOL tethers applications to VMware software for an additional term of years, restricting hybrid cloud mobility and increasing dependency on a single vendor.

There is a deadline of August 30, 2027 for existing AVS customers to transition off legacy Reserved Instances (RIs) that feature bundled VMware licenses. Microsoft announced the retirement of these legacy RIs in August 2026. Organizations must transition to alternative SKUs to avoid operational disruption, uncontrolled costs, and potential loss of access to software-defined datacenters (SDDCs).

Nutanix Cloud Clusters (NC2) delivers a hybrid cloud platform with the flexibility, simplicity, and cost efficiency needed to run applications in private or public clouds, operated as a true single cloud. Avoid lengthy hardware delays with NC2, which runs the core Nutanix HCI stack (including Nutanix AOS, AHV and Prism), along with other Nutanix products and services, on bare metal instances in public clouds allowing customers to easily migrate or extend applications from on-premises to public cloud providers.

Yes, you can use the products and services in Microsoft Azure that you already have from within a VNET in your subscription.

NC2 is different because it’s the same. NC2 uses the same Nutanix data and management planes on-premises and in multiple clouds. With one management console for all locations, the operational complexity of migrating, extending, or bursting applications and data is dramatically reduced. In addition, customers gain immediate capacity in the cloud, avoiding lengthy hardware delays while preserving both operational continuity and modernization momentum. Additional differentiated benefits include:

• Licenses are portable across clouds, so no new licenses are required if migrating VMs, applications, or data.
• NC2 can be deployed in just a few hours, greatly accelerating burst or migration use cases. 
• NC2 is not a managed service. Customers control when, where, and how to deploy or repatriate.

Yes, you can use your existing Nutanix licenses on NC2 on Azure.

Yes, you can purchase eligible Nutanix software and Services through the Azure Marketplace, drawing down on existing MACC commitments.

The Azure Reservation Exchange Program conveniently allows you to transfer existing AVS reservations directly to NC2 on Azure, enabling the retention of your Azure investments through prorated credits. See here for more information.

Yes, NC2 on Azure is available in most Microsoft Azure regions across the globe, including West Europe and Germany. For the most up-to-date information, please refer to the regions listed in the Deployment and User Guide.