Navigating the Shift: Cloud Migration, Azure, and Life After VMware

Author:

Mike Pagán, Senior Solution Architect at Network Center

Published:

January 21, 2026

Why Cloud Migration Is a Hot Topic

The IT landscape is changing rapidly, and for many organizations, the question isn’t if you’ll move to the cloud, but when and how. With Broadcom’s acquisition of VMware and the resulting shake-up in licensing and partnerships, businesses are re-evaluating their virtualization strategies. Many are facing the same questions, stick with VMware, migrate to Azure, or consider a cloud-first approach? In this blog we will break down your options, the costs, and the real-world scenarios that can help you make the best decision for your organization.

The VMware Shake-Up: What’s Changed?

Broadcom’s purchase of VMware brought significant changes:
Licensing Bundles: Essentials, Essentials Plus, Standard, and even Enterprise Plus are gone. Only VMware Cloud Foundation and VMware vSphere Foundation remain.
Partnerships: Only a handful of large national partners remain. Many organizations, including Network Center, can no longer sell VMware.
Pricing: Renewals are now annual subscriptions with minimum core counts, and prices have increased—sometimes dramatically.
Renewal Process: Renewals must go through third parties, and cease-and-desist letters are being sent to organizations not renewing on time.
The bottom line: sticking with VMware is the path of least resistance, but it’s more expensive and less flexible than ever before.

Exploring Your Options

1. Renew VMware

Pros: Minimal effort if you’ve just purchased new equipment or can’t migrate immediately.
Cons: Higher costs, fewer licensing options, and a changing renewal process that can change at any time.

2. Migrate to Azure

Pros: Flexibility, scalability, and the ability to pay only for what you use. Azure’s pricing is stable, and you can commit to one- or three-year terms for discounts.
Cons: Some applications (like QuickBooks or certain manufacturing apps) don’t run well over VPN. You may need to add services like Azure Virtual Desktop for optimal performance.

3. Go Cloud-First

Pros: No servers, no on-premises infrastructure, and everything is managed as a service. Perfect for startups or organizations whose applications are all web-based.
Cons: Requires careful planning, user training, and sometimes a shift in business processes. Not all legacy apps or workflows are cloud-ready.

What Does “Cloud Ready” Mean?

Cloud ready refers to an application, system, or infrastructure that was originally built for on-premises (local) environments but has been adapted or prepared to run in the cloud with minimal changes. Unlike “cloud native” solutions—which are designed from the ground up for the cloud—cloud ready systems may not take full advantage of all cloud features, but they are compatible with cloud platforms and can be deployed there efficiently.

Real-World Scenarios

Understanding the options is only the first step. The real challenge lies in applying this concept to your organization’s unique environment. Every business has its own mix of legacy systems, user needs, and operational goals, which means the journey to the cloud will look different for everyone. To illustrate how these principles play out in practice, let’s explore some real-world scenarios that highlight the opportunities and challenges organizations face as they consider cloud migration and modernization.

Scenario 1: The Cloud-Ready Small Business

A small medical sales company with mostly cloud-based applications and a mobile workforce is a great candidate for a cloud-first approach. By moving file shares to SharePoint and using Microsoft 365 Business Premium or F3 licenses, they can eliminate on-premises servers, simplify backups, and streamline onboarding for new employees with tools like Autopilot and Intune.

Scenario 2: The Hybrid Agricultural Company

An agricultural company with 80 employees and legacy applications that aren’t cloud-ready may need a hybrid approach. They can migrate some workloads to Azure while keeping critical applications on-premises until cloud alternatives become available. Azure’s costs are predictable, and migration can be phased to minimize disruption.

Migration Methods: How to Move to Azure

The path to Azure isn’t one-size-fits-all. Each approach comes with its own balance of effort, cost, and control. With those practical scenarios in mind, let’s break down the core migration methods that can help you move from planning to execution with clarity and confidence.

1. Create New Virtual Machines: Build fresh VMs in Azure, migrate data, and reinstall applications. This is labor-intensive but gives you a clean slate.
2. Backup and Restore: Use tools like Veeam to restore existing VMs to Azure. Best for quick migrations of a small number of VMs.
3. Azure Migrate Service: Deploy an appliance to assess readiness, replicate VMs, and perform test migrations. This method is efficient and minimizes downtime but requires some setup and resources.

Key Considerations

As you consider the above migration options, below are some additional considerations to factor in.
Licensing: Pay attention to Microsoft licensing, especially for SQL Server. Use the Azure calculator and check the “hybrid benefit” box if you have your own licenses.
Backups: Azure and managed services simplify backups and disaster recovery, but you’re still responsible for data integrity.
User Experience: Moving to the cloud changes how users access files and applications. Training and change management are essential.
Security: Cloud services offer new security models but also require new tools and policies (like Intune for device management and conditional access).

The Human Side: Change Is Hard

Keep in mind, migrating to the cloud isn’t just a technical project—it’s a people project. Users may resist new workflows, especially if they’re used to mapped drives or legacy applications. Success depends on communication, training, and a willingness to adapt.

There’s No One-Size-Fits-All

Every organization’s path to the cloud is unique. For some, a cloud-first strategy is a no-brainer. For others, hybrid solutions or sticking with VMware (for now) may make more sense. The key is to evaluate your applications, user needs, and long-term goals—and to stay flexible as technology and business needs evolve.
If you have questions or want to discuss your migration strategy, reach out to your trusted IT partner. The journey to the cloud is ongoing, and the right guidance can make all the difference.

Contact us to learn more about how these innovations can help your organization stay ahead of the curve.

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