As of October 2026, Hyper-V comes with Windows Server 2025, and the Datacenter edition lists at a suggested MSRP of $6,771 per 16 core licenses with unlimited virtual machines on the licensed host. Broadcom licenses VMware vSphere through per-core subscriptions such as VCF and VVF, with a 16-core minimum per CPU, and its product pages show no list price, so the real comparison is a Microsoft price list against a Broadcom quote.
Every value below comes from the vendors’ own pages, including Azure Local, Microsoft’s hyperconverged option (Microsoft Learn: “Azure Stack HCI is now part of Azure Local“). The VMware Alternatives Tracker lists the same platforms alongside others.
Key facts
| Plan | Price | Limits | Included | Costs extra |
|---|---|---|---|---|
| Windows Server 2025 Standard | $1,176 per 16 core licenses (MSRP) | 2 VMs plus 1 Hyper-V host per license | Hyper-V, Storage Replica (1 volume up to 2 TB) | CALs; Storage Spaces Direct needs Datacenter |
| Windows Server 2025 Datacenter | $6,771 per 16 core licenses (MSRP) | 8 core licenses per CPU, 16 per server minimum | Unlimited VMs, Storage Spaces Direct, software-defined networking | Windows Server CALs |
| Windows Server pay-as-you-go (Azure Arc) | $33.58 per core per month | No unlimited virtualization | No Windows Server CALs needed | RDS CALs if used |
| Azure Local (L1, hyperconverged) | $9.90 per physical core per month (Microsoft’s page rounds the display to $10) | Each release supported for 6 months | Host service, AKS enabled by Azure Arc | Windows guest licenses: $23.25 per physical core per month (displayed as $23.3) |
| VMware vSphere Foundation (VVF) | Not published (Broadcom’s product page links to Contact Sales) | 16-core minimum per CPU | 0.25 TiB of vSAN per core | Extra vSAN capacity |
| VMware Cloud Foundation (VCF) | Not published (Broadcom’s product page links to Contact Sales) | 16-core minimum per CPU; compliance report every 180 days | 1 TiB of vSAN per core | Extra vSAN capacity |
Hyper-V vs VMware side by side
| Hyper-V (Windows Server 2025) | VMware (VCF and VVF) | |
|---|---|---|
| Licensing | Per physical core in packs of 2 or 16, plus Windows Server CALs | Per-core subscription; every core licensed, including cores disabled in the BIOS |
| Published price | Datacenter $6,771, Standard $1,176 per 16 cores (MSRP); Azure Local $9.90 per core per month | Not on Broadcom’s product pages, which link to Contact Sales |
| Free option | No free edition; 180-day evaluation | Free ESXi 8.0 Update 3e, which Broadcom suggests for home labs and dev/test: no vCenter, vMotion, HA or Broadcom support |
| VMware migration tool | VM Conversion extension for Windows Admin Center (preview, no extra cost); Azure Migrate for Azure Local | Not applicable (incumbent) |
| Current version | Windows Server 2025 (November 1, 2024); Azure Local 12.2609 (September 11, 2026) | VCF 9.1.1 (September 3, 2026) |
| Support dates | Mainstream support to November 2029, extended to November 2034; Azure Local must be updated within 6 months | VCF 9.x: estimated end of service June 17, 2031 |
| HCI or storage | Storage Spaces Direct in Datacenter; Azure Local is the packaged HCI product | vSAN included: 1 TiB per core (VCF) or 0.25 TiB (VVF) |
| Where it fits | Microsoft-standard shops already licensing Datacenter for Windows guests | Full-stack VCF users who depend on vSAN, NSX and vCenter tooling |
What each one includes
Hyper-V is a role in Windows Server, so the edition decides what you get. Storage Spaces Direct, software-defined networking and shielded VMs are Datacenter features, and Standard limits Storage Replica to one 2 TB volume. The key line is virtualization rights: Datacenter covers unlimited virtual machines per licensed host, Standard covers 2.
That matters if most of your VMware guests run Windows. Those guests already need Windows Server licenses on top of the VMware subscription, and Datacenter covers unlimited Windows Server VMs on each fully licensed host. Moving to Hyper-V removes the VMware line rather than adding a new one.
On the VMware side, the breakdown of VMware licensing changes in 2026 explains the VCF and VVF bundles.
The hidden limits
Hyper-V and Azure Local
- CALs: Windows Server CALs are required for every user or device that accesses a server, and Microsoft’s pricing page doesn’t list their price.
- Core minimums: 8 core licenses per processor and 16 per server, even on single-processor servers.
- The VMware conversion tool is a preview. Microsoft isn’t obligated to support it, and it moves up to 10 VMs per batch, using Changed Block Tracking to keep cutover short.
- Pay-as-you-go through Azure Arc doesn’t include unlimited virtualization.
- Azure Local releases are supported for six months; fall further behind and Microsoft Support will only help you update.
VMware
- The 16-core minimum per CPU counts an 8-core processor as 16 cores.
- Under the June 2026 program terms, version 9 customers must send Broadcom a compliance report every 180 days, or management features can be degraded or blocked and support suspended.
- The free ESXi 8.0 Update 3e license has no vCenter, vMotion, HA, DRS or Broadcom support, and Broadcom suggests it for home labs and development or test environments.
What it costs for a 3-host cluster
Take 3 hosts, each with 2 CPUs of 32 cores: 192 cores in total.
- Hyper-V on Datacenter: 12 packs of 16 cores x $6,771 = $81,252 at suggested MSRP, plus CALs. Microsoft lists this as traditional licensing, not a monthly fee.
- Azure Local: 192 x $9.90 x 12 = $22,809.60 a year in host fees. Windows guest licensing adds 192 x $23.25 x 12 = $53,568 a year. (These use the prices in Microsoft’s page data; the page displays them rounded to $10 and $23.3.) Datacenter licenses with active Software Assurance (through an Enterprise Agreement or CSP) can waive both through Azure Hybrid Benefit, on hyperconverged L1 deployments only.
- VMware VCF or VVF: 192 core subscriptions at a price only your quote will show, and Windows guests still need their own Windows Server licenses.
MSRP is a suggested list price (Microsoft says to ask a representative for a quote), and these figures leave out hardware, Software Assurance and migration labor. If you’re still on vSphere 8, the vSphere 8 end-of-support timeline sets the deadline for this decision.
How Hyper-V compares with other VMware alternatives
Two open-source options from the VMware Alternatives Tracker often land on the same shortlist:
- Proxmox VE: subscriptions from EUR 120 (Community: stable updates, no support tickets) to EUR 1,100 per CPU socket per year; production support starts at EUR 370 (Basic). ESXi import is built in. It suits Linux-heavy estates better than Windows-heavy ones.
- XCP-ng with Vates VMS: Pro support at $1,000 per host per year (3-host minimum); Xen Orchestra’s XO V2V tool migrates VMs from VMware.
Neither includes Windows guest licensing, which is often what tips Windows-heavy estates toward Hyper-V.
Who each one fits
- Hyper-V fits Microsoft-standard organizations, especially those already buying Datacenter for Windows guests.
- Azure Local fits teams that want hyperconverged hardware managed from Azure and are comfortable with monthly per-core billing and a six-month update rule.
- VMware fits estates built on vSAN, NSX and vCenter-driven automation that can’t absorb a platform change before the next renewal.
Bottom line
- If you already own Datacenter licenses for your Windows guests, price Hyper-V first. Much of the license cost is already paid.
- If you want hyperconverged infrastructure with cloud management, run the Azure Local numbers with and without Azure Hybrid Benefit.
- Treat the VM Conversion extension as a preview: test it on a pilot group before planning a mass move.
- If you stay on VMware, negotiate with a costed Hyper-V plan in hand. The Broadcom renewal playbook covers the timing.
Frequently asked questions
Is Hyper-V free?
Not on its own. Microsoft’s pricing page lists only paid Standard and Datacenter editions and pay-as-you-go; Hyper-V is included in each. A 180-day evaluation is available.
Can VMware VMs be migrated to Hyper-V?
Yes. The VM Conversion extension for Windows Admin Center moves VMs from vCenter to Hyper-V at no extra cost, but it is in preview. For Azure Local, Microsoft points to Azure Migrate.
Does Windows Server Datacenter really include unlimited VMs?
Yes, for traditional licenses covering all of a host’s cores. Pay-as-you-go licensing through Azure Arc does not include unlimited virtualization.
Hyper-V or Azure Local: which fits?
Hyper-V on Windows Server uses traditional per-core licensing. Azure Local is billed monthly per core through Azure, and each release must be updated within six months to stay supported.
Sources
- Microsoft: Windows Server pricing
- Microsoft: Windows Server licensing and FAQ
- Microsoft Learn: Comparison of Windows Server editions
- Microsoft Lifecycle: Windows Server 2025
- Microsoft Evaluation Center: Windows Server 2025
- Microsoft Learn: VM Conversion extension in Windows Admin Center (Preview)
- Azure Local pricing
- Microsoft Learn: Azure Local release information
- Microsoft Learn: Migrate VMware VMs to Azure Local with Azure Migrate
- Microsoft Learn: Azure Stack HCI is now part of Azure Local
- Broadcom VCF Specific Program Documentation, June 2026 (PDF)
- Broadcom VVF Specific Program Documentation, June 2026 (PDF)
- VMware blog: General availability of VCF 9.1.1
- VMware blog: VCF 9 support model and release cadence
- Broadcom KB 399823: ESXi 8.0 Update 3e as a free hypervisor
- Broadcom KB 313548: counting cores for VCF and VVF and TiBs for vSAN
- VMware Cloud Foundation product page
- Proxmox VE subscription pricing
- Proxmox VE overview
- Vates VMS pricing and support
- Xen Orchestra docs: V2V migration guide
Prices checked against the vendors’ own pages on October 11, 2026.
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