# Azure VMware Solution

## Azure VMware Solution — commitment brief

> **Data sourced**: March 2026. Verify current figures at the [Azure Pricing Calculator](https://azure.microsoft.com/en-us/pricing/calculator/).

### Coverage summary

Azure VMware Solution (AVS) supports Reserved Instances for host nodes, with discounts of approximately 38–43% at 1-year and 60–63% at 3-year vs. pay-as-you-go. The host reservation includes VMware licensing (bundled with the host cost) — unlike most Azure reservations which cover compute only. The Azure Compute Savings Plan does not apply to AVS. Azure Hybrid Benefit applies for Windows Server and SQL Server workloads running on AVS, potentially combining with reservations for total savings up to \~85% vs. standard pay-as-you-go.

**What is covered**: AVS host node compute costs, including the bundled VMware software licensing (vSphere, vSAN, NSX, HCX).

**What is not covered**: Networking costs, Azure Storage external to the host (e.g., Azure NetApp Files, Azure Blob), data transfer/egress, any Azure PaaS services accessed from AVS workloads. Reservations are not available in all regions and may be subject to capacity constraints.

### Azure Hybrid Benefit

> AHB applies. Existing Windows Server and SQL Server licenses with Software Assurance can be applied to workloads running on AVS hosts, reducing software licensing costs. SQL Server Enterprise edition licenses can be applied across ESXi host cores — placement policies can limit the core count that requires licensing. Combined with a 3-year reservation, total savings can reach \~85% vs. standard pay-as-you-go rates.

### SKU / tier coverage

| SKU / Tier | Reservation | Savings Plan | 1-yr discount | 3-yr discount | Notes                                                           |
| ---------- | ----------- | ------------ | ------------- | ------------- | --------------------------------------------------------------- |
| AV36       | ✅ Yes       | ❌ No         | \~38–43%      | \~60–63%      | Primary reservable SKU; VMware licensing included in host price |
| AV36P      | ✅ Yes       | ❌ No         | varies        | varies        | Availability region-dependent; verify in portal                 |
| AV52       | ✅ Yes       | ❌ No         | varies        | varies        | Availability region-dependent; verify in portal                 |
| AV64       | ✅ Yes       | ❌ No         | varies        | varies        | Availability region-dependent; verify in portal                 |

### Reservation vs. savings plan

**Reservation**: The only commitment instrument available for AVS. Scoped to a specific host SKU and region. VMware licensing (vSphere, vSAN, NSX, HCX) is bundled in the host cost and included in the reserved price. Azure Compute Savings Plan does not cover AVS. Reservations require an EA, Microsoft Customer Agreement, or CSP subscription.

## Regional availability

Azure VMware Solution reserved instances are available only in the regions listed on the [Products available by region](https://azure.microsoft.com/global-infrastructure/services/?products=azure-vmware) page. AVS is not available in all Azure regions — the service requires specific bare-metal host capacity and is deployed selectively. Host SKU availability (AV36, AV36P, AV52, AV64) varies by region and availability zone. Purchases require an Enterprise Agreement and available host quota in the subscription.

**Notable exclusions**: Regions where AVS is not deployed do not support reservations. Azure Government regions have limited AVS availability. Capacity constraints may prevent purchases in specific regions for certain host SKUs even where AVS is generally available.

⚠️ Availability varies by SKU and region. Always verify in the [Azure portal](https://portal.azure.com) or via the [Azure Retail Pricing API](https://prices.azure.com/api/retail/prices) before purchasing.

### Archera

Azure VMware Solution is within Archera's commitment management scope. Archera can automate AVS host reservation purchase, monitor host utilization, and wrap commitments in a GRI/GSP — eliminating downside risk on over-committed VMware capacity.

***

**Sources**

* [Save costs with a reserved instance for Azure VMware Solution](https://learn.microsoft.com/en-us/azure/azure-vmware/reserved-instance)
* [Azure Hybrid Benefit for SQL Server on Azure VMware Solution](https://learn.microsoft.com/en-us/azure/azure-vmware/sql-server-hybrid-benefit)
* [Azure VMware Solution pricing](https://azure.microsoft.com/en-us/pricing/details/azure-vmware/)

⚠️ Discount percentages are approximate and region/SKU-dependent. Exact rates are shown in the Azure portal at reservation purchase time. Not available in all regions. Always verify with the [Azure Pricing Calculator](https://azure.microsoft.com/en-us/pricing/calculator/).


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