Updated: June 28, 2025 (June 28, 2025)

  Analyst Report

Migrating from VMware? Look Before You Leap

My Atlas / Analyst Reports

873 wordsTime to read: 5 min
by
Greg DeMichillie

Greg brings with him over two decades of engineering, product and GTM experience. He has held leadership positions at premier... more

  • Microsoft has several alternatives to VMware for on-premises server virtualization.
  • Hyper-V is mature and runs on-premises, but it is getting limited future investment.
  • Azure Local is newer and strategic for Microsoft, but it nearly always requires a cloud connection.
  • Costs depend on how customers have licensed Windows Server.

As their existing VMware contracts come up for renewal, some customers are evaluating alternatives to VMware for on-premises virtualization. Many of the potential switchers cite changes made following VMware’s acquisition by Broadcom, including increased costs and changes in licensing terms. Microsoft offers two primary ways for customers to use Windows Server as a VM-hosting environment to run server-based applications: Hyper-V and Azure Local. This report provides an overview of the technical and licensing considerations customers should bear in mind when evaluating Hyper-V or Azure Local as a replacement for VMware.

Microsoft also offers options for organizations to deploy virtual desktop infrastructure (VDI), and those are described in other Directions reports.

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