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Azure VMware Services AVS Cost Optimization with Azure Migrate

Introduction

More and more companies are moving their VMware workloads to the cloud. One of the most popular options is Azure VMware Services (AVS). With AVS, organizations can run VMware workloads natively on Azure without changing their existing VMware tools and processes.

But here is the challenge: if AVS is not planned correctly, costs can rise quickly. Businesses may allocate more nodes than they really need. This leads to higher monthly bills. The good news is that Azure Migrate makes it possible to right-size workloads before the migration and optimize costs on AVS.

In this article, we will explain how to optimize Azure VMware Services (AVS) with Azure Migrate, how to use key parameters like CPU oversubscription and memory overcommit, and how companies can achieve real cost savings.

What is Azure VMware Services AVS?

Azure VMware Services (AVS) is a Microsoft solution that allows you to run VMware workloads directly in the Azure cloud. With AVS you get:

  • Full compatibility with existing VMware tools (vSphere, vSAN, NSX).
  • The ability to move workloads to Azure without re-architecting.
  • Access to Azure services like AI, security, and networking.

For many businesses, AVS is the fastest way to move to the cloud while still protecting their investment in VMware.

Learn More: https://learn.microsoft.com/en-us/azure/azure-vmware/introduction

Azure VMware Services AVS

Why Optimize Azure VMware Services AVS Costs?

Running workloads on AVS brings many benefits, but cost control is essential. Every extra node you add in AVS has a direct impact on your monthly Azure bill.

Azure Migrate helps solve this by analyzing your on-premises VMware workloads and calculating the right number of nodes in AVS. By optimizing CPU, memory, and storage usage, Azure Migrate ensures that you only pay for what you need in AVS.

Using Azure Migrate for Azure VMware Services AVS Planning

Step 1: Collect Inventory

Use RVTools to collect a full inventory of your VMware environment. Export the data without changing the format.

Step 2: Import into Azure Migrate

In the Azure Portal, go to Azure Migrate and import the RVTools file.

Step 3: Run Assessment for AVS

Azure Migrate will analyze your workloads and create an Azure VMware Services (AVS) assessment. This includes details about CPU, memory, and storage usage.

Step 4: Adjust Key Parameters

You can change factors like CPU oversubscription, memory overcommit, storage policies, and comfort factor to see how they affect AVS costs.

Key Parameters for AVS Cost Optimization

1. CPU Oversubscription in Azure VMware Services AVS

By default, AVS uses 4:1 CPU oversubscription. You can increase this to 6:1 or 8:1 for workloads that do not use much CPU.

  • Benefit: Fewer nodes in AVS.
  • Risk: May affect CPU-intensive workloads.

2. Memory Overcommit for AVS Optimization

AVS supports memory overcommit. This means you can run more workloads than the physical memory size.

  • Benefit: Higher efficiency.
  • Risk: Too much overcommit can cause swapping.

3. Deduplication and Compression

In AVS, storage efficiency comes from deduplication and compression.

  • Example: 300 GB of data can shrink to 100 GB.
  • Benefit: Lower storage costs in Azure VMware Services.

4. FTT and RAID Policies

Resilience settings in AVS also affect cost:

  • RAID-1/FTT1: safer but uses 2x storage.
  • RAID-5/FTT1: more efficient, 1.33x storage.
    The choice depends on your business needs.

5. Comfort Factor

Azure Migrate includes a comfort factor in its AVS calculations.

  • If set too high, AVS costs increase.
  • If set closer to real usage, AVS costs drop.

Example of Azure VMware Services AVS Cost Savings

One company optimized CPU oversubscription in their AVS assessment:

  • Before: 4:1 oversubscription → 6 AVS nodes.
  • After: 8:1 oversubscription → 5 AVS nodes.
  • Result: Almost 30% cost savings in Azure VMware Services.

This example shows that simple changes in Azure Migrate can make a big difference in AVS costs.

Extra Tips for Reducing Azure VMware Services (AVS) Costs

  1. Use Reserved Instances
    Buy 1-year, 3-year, or 5-year AVS reservations to get discounts.
  2. Remove Unused VMs
    Clean up snapshots and idle VMs before migrating to AVS.
  3. External Storage Options
    If storage is the main limit, use Azure NetApp Files or Elastic SAN together with AVS. This can reduce the number of nodes.

Important Things to Remember with AVS

  • Cluster Rules: AVS does not allow mixed node SKUs in the same cluster. Use separate clusters for different sizes.
  • N+1 Resilience: AVS includes N+1 by default for high availability. Plan this into your sizing.
  • Real Data, Real Settings: Always use realistic values for deduplication, compression, and comfort factor when planning AVS.

Conclusion

Azure VMware Services (AVS) gives companies a simple and powerful way to move VMware workloads to Azure. But without cost optimization, AVS can become expensive.

By using Azure Migrate, you can:

  • Right-size your VMware environment.
  • Optimize CPU, memory, and storage.
  • Save up to 30% on AVS costs.

With the right planning, Azure VMware Services becomes not only a fast migration option but also a cost-effective cloud solution.