Infrastructure delivery is progressively moving to a cloud-native model. However, uncertainties caused by VMware licensing changes are adding a new urgency to strategic decision making. We consider the challenges in moving to a cloud-native infrastructure and the role that Azure VMware Solution might play in the journey.
For more than two decades, enterprise IT has been built around the data centre. For much of that time the default computing model has been server virtualisation, typically with VMware vSphere. This abstracted the physical hardware to improve utilisation and created a a stable, controllable environment. Infrastructure teams optimised for uptime, capacity planning, and cost efficiency.
And it’s a model that has worked very well… but the focus is shifting.
Competitive pressures now demand faster application delivery, greater elasticity, API-driven integration, and continuous iteration. The objective is no longer simply ‘efficiency’, it’s business agility. Which means cloud platforms, platform services, API-driven architecture, containers, and DevOps operating models.
However, many organisations can’t simply switch to cloud native.
Cloud Native challenges
While a cloud-native architecture promises resilience, scalability and speed, organisations need to first overcome several challenges.
- Reliance on legacy applications
If key systems are monolithic, tightly coupled to specific OS versions, and/or dependent on infrastructure-level configurations, they can’t quickly or easily be refactored.
- Skills gap
Typically, existing staff don’t have the skills or the working culture to support a cloud native approach. They’ll need time to become skilled with infrastructure as code, continuous integration, development and deployment (CI/CD) pipelines, and new security models, as well as to adapt to a product-centric delivery culture.
- Risk
Core systems, such as ERP and finance, can’t tolerate disruption – especially in regulated environments. ‘Big bang’ changes are inherently riskier, and it may be a level of risk that isn’t acceptable to your senior leadership team.
- Commercial realities
Speed of change may also be limited by hardware investment cycles or data centre contracts, multi-year licensing commitments, and data residency requirements.
Hybrid by necessity: the transitional phase
Where a rapid move to Cloud Native isn’t practical, a more measured, incremental transition is possible.
Organisations can adopt a hybrid model and separate infrastructure migration from application modernisation, moving workloads off ageing infrastructure and stabilising first before evolving.
It is important to distinguish here between cloud location and your cloud operating model. Running workloads in a public cloud doesn’t automatically make them Cloud Native, but it can create the conditions for modernisation.
Which is where Azure VMware Solution (AVS) can help.
What is Azure VMware Solution?
You can think of AVS as a half-way house on your journey from a data centre centric to cloud-native infrastructure.
AVS gives you a fully managed VMware environment running natively within Microsoft Azure. It provides a dedicated, private cloud infrastructure built on the familiar VMware stack — vSphere, vSAN and NSX — delivered as a Microsoft service. Operationally, it looks and behaves like the VMware environment many organisations already run.
Crucially, workloads can be migrated with minimal or no re-architecture. Existing tools, processes and skillsets remain relevant.
In simple terms: AVS allows organisations to relocate their VMware estate into Azure without rewriting applications.
AVS as a strategic bridge
Azure VMware Solution is not an end state, but it provides an easy to manage route to Cloud Native.
1. Reducing infrastructure risk
AVS enables workloads to be quickly moved into Azure, reducing your reliance on physical infrastructure without introducing immediate application risk. It separates the infrastructure decision from the application decision. This is especially important for organisations facing data centre exits, hardware refresh cycles, or cost pressures.
2. Buying time for modernisation
By lifting and shifting VMware workloads into Azure, you can then assess applications individually. Some may be retired, others may be re-platformed, and a smaller subset may justify full re-architecture. The key is sequencing. Infrastructure migration first, application transformation second.
3. Supporting skills transition
AVS also buys you the time and space to make a controlled transition, allowing your infrastructure team to continue to operate in a familiar way, while gradually integrating Azure-native services and developing new, cloud-native skillsets.
4. Enabling gradual integration with Azure services
Once workloads reside within Azure, they can begin consuming native services such as backup, disaster recovery (DR), security tooling, networking, analytics, and eventually platform services.
AVS becomes more than a hosting platform: it becomes a staging post for transformation.
When AVS makes sense and when it doesn’t
AVS is particularly compelling where:
- There’s an infrastructure deadline: data centre contract renewal or hardware refresh
- There’s a sizeable VMware dependency
- VMware licensing changes have impacted budgets and altered economics
- Application refactoring would take years
- Risk tolerance is low
- There are regulatory or resilience drivers.
It is less compelling where:
- Applications are already containerised
- Cloud-native delivery capabilities are mature
- Greenfield platforms are being built from scratch.
Discover what’s right for you
While an immediate cloud-native transformation is an attractive notion, practical challenges may dictate otherwise. Many organisations will pragmatically follow a path from virtualised data centre to hybrid infrastructure, cloud-hosted VMware, incremental re-platforming, and targeted cloud-native adoption.
AVS can play a deliberate role in that journey, as an enabling platform that reduces risk, protects operational continuity, and creates breathing space for transformation.
But, like any architectural decision, individual circumstances matter.
What’s next
Further your knowledge by registering to attend ‘Navigating the path from AVS to Cloud Native’ on Monday 23 March at The Shard, London. At this punchy, half-day briefing you’ll hear:
- Microsoft’s Ron Goedhart explaining The Foundation for Content Modernisation
- Aspen Insurance’s Head of Cloud, Julianne Franz outline learnings from their cloud-native journey
- Microsoft’s Nelson Pereira describing the value you can drive with Data Factory
- Cloud Direct’s Jonathan Moore outline the help that can accelerate your journey
Unable to attend? Request an introductory call with a subject matter expert using the form below, and see how Cloud Direct can help you successfully prepare for cloud-native infrastructure.
There is often a healthy dose of scepticism when we talk about changing how you consume cloud services. During our recent webinar, it became clear that while many IT leaders may be considering how they can gain a better CSP service, a few common myths are still acting as “cloud anchors,” holding businesses back from making a move.
Let’s pull back the curtain on these concerns and look at the reality of evolving your Azure relationship.
Myth vs. Reality: Your CSP Questions Answered
Myth 1: “Moving will cause significant downtime.”
In most cases, switching is a backend billing transition. Your virtual machines, databases, and applications keep running exactly as they are. There is no migration of data, just a change in who manages the invoice.
Myth 2: “I’ll lose control of my data.”
You remain the owner of your data and your Azure environment. The right partner simply provides a layer of expert management and governance on top. You still hold the keys, a partner will just help you drive more efficiently.
Myth 3: “It’s expensive to switch providers.”
There is typically no cost from Microsoft or a new partner to transition your billing. In fact, with our CSP+ the move is designed to unlock immediate cost savings that weren’t being captured before, and in time help you gain additional savings from cloud optimisation.
Myth 4: “I’m locked into a restrictive contract.”
Modern CSP agreements are built for agility. Unlike traditional rigid enterprise commitments, CSP+ offers more flexibility to scale your resources up or down as your business requirements change.
Breaking Down the Barriers
1. Will our relationship with Microsoft change?
Not in the way you might fear. You aren’t leaving Microsoft; you are simply choosing a more personalised way to consume their technology. You still benefit from the Microsoft infrastructure that you are familiar with, but you gain a dedicated partner who knows your specific environment inside out. Think of it as having a direct line to Microsoft, with a translator and an advocate standing next to you.
2. How easy is it to actually switch?
Once we establish a reseller relationship in your Partner Center, the process is largely administrative. We handle the heavy lifting of the transition, ensuring that your existing configurations and resource groups remain intact.
3. What about my current provider?
We often see concerns about breaking existing agreements. Most modern cloud arrangements are designed to be portable. We can review your current setup to ensure a clean handover, often identifying ways to exit legacy lock-in scenarios that are no longer serving your best interests.
4. Who really owns the environment?
You do and you should feel in more control not less with the right partner. You retain your Entra ID (formerly Azure AD) tenant and all associated permissions. The role of a great CSP partner is to provide additional support to help you run the environment smoothly. Providing the proactive monitoring, and the technical guidance that helps you stay ahead of the curve. Total transparency is a cornerstone of the CSP+ model.
Ready to unlock more from Azure?
By dispelling these myths, we can focus on what really matters: giving you full control and visibility of your operations with expert guidance to deliver for your organisation.
Watch our webinar to discover how CSP+ can benefit your business.
Every year, Microsoft retires a new wave of products as it accelerates its cloud-first and AI-powered roadmap. For IT leaders, these changes can directly impact security, budget planning, operational continuity, and the ability to adopt the latest Microsoft innovations.
2026, in particular, is a year of major inflection points. Several widely deployed Microsoft platforms move into final support phases or are superseded by modern cloud equivalents. At the same time, Microsoft is combining parts of its security ecosystem. Most notably unifying Sentinel (SIEM) and Defender XDR–led operations under a single operational model.
This guide highlights the key product changes coming in 2026, so that you can prepare for how these may affect your organisation.
Why Microsoft End of Life in 2026 Matters for IT Leaders
End of Support isn’t just a date in a spreadsheet. It has real-world implications:
1. An increase in security risk
Unsupported systems become immediate targets for attackers. No patches, no fixes mean just vulnerabilities waiting to be exploited. In today’s landscape, this is no longer acceptable risk; it is a board level issue.
2. Blockers to modernisation and AI adoption
Legacy operating systems and server platforms cannot support Microsoft’s modern technologies such as AI services like Copilot. Staying on outdated systems means you cannot use the capabilities Microsoft is investing in the most. Therefore, limiting the innovation of your organisation.
3. Rising operational cost and technical debt
Legacy infrastructure becomes increasingly expensive to maintain, whether due to bolt on security solutions, extended support costs, or complex workarounds needed to keep ageing apps running.
2026’s Most Impactful End of Support Milestones
Mark your calendars. These are the product changes you need to know.
Windows 10
Deadline: 2026 marks the end of Year 1 ESU
While the primary Windows 10 end of support (EOS) date landed in 2025, many organisations will rely on Extended Security Updates (ESUs) through 2026. Crucially, 2026 is Year 1 of ESU, which is the lowest cost year before fees escalate significantly.
Remaining on Windows 10 means organisations shoulder increasing risk and cost. It also limits access to new capabilities delivered only on Windows 11, including Copilot and Intune management features.
For IT leaders, 2026 is the final window to:
- Complete fleet migration to Windows 11
- Retire non-compliant hardware
- Evaluate Windows 365 for legacy application continuity
- Refresh endpoint standards and Zero Trust policy enforcement
Windows Server 2016
Deadline: EOS 12 January 2027. 2026 is the final full year to migrate
Windows Server 2016 moves into its last full year of support in 2026, ahead of its hard EOS on January 12, 2027. Despite its age, it remains heavily deployed across midmarket and enterprise environments, often underpinning identity, file services, and key business applications.
Outdated servers introduce material risk into the environment. Particularly when used for Domain Controllers or critical application workloads. As a result, 2026 becomes the decisive year for planning and executing migrations.
Recommended priorities include:
- Assessing which workloads can be rehosted or modernised in Azure
- Upgrading or redesigning domain controller architecture
- Planning dependency remediation for older line of business apps
SQL Server 2016
Deadline: EOL on July 14, 2026
SQL Server 2016 remains common across operational reporting systems, ERP backends, and custom applications. Its hard deadline of 14 July 2026 means organisations must accelerate planning now, particularly where refactoring or cloud migration is required.
Migrating from SQL 2016 opens the door to:
- Azure SQL Managed Instance
- Azure SQL Database PaaS
- SQL Server 2022 (for on-prem regulatory or isolation requirements)
- A more modern data platform aligned to Azure, Fabric, and AI initiatives
SharePoint Server 2016
Deadline: EOL on July 14, 2026
On premises SharePoint is still widely used in organisations with complex intranet structures, document retention requirements, or customised workflows. These organisations face rising operational risk if they are not quick to react.
Migrating to Microsoft 365 brings significant benefits. Including more secure collaboration, modern intranet capabilities via Viva Connections, Power Platform based workflow automation, and reduced infrastructure overhead.
Office LTSC 2021
Deadline: EOL on October 13, 2026
This is important for organisations that deliberately avoided cloud subscriptions. Office LTSC 2021 was often purchased as the “safe”, perpetual alternative to Microsoft 365. But its end of support on 13 October 2026 forces a strategic decision:
- Move to Microsoft 365 Apps for Enterprise
- Or accept major compatibility, security, and integration limitations
More importantly, Office LTSC will not benefit from the rapid innovation cycle. Meaning your organisation will miss out on the latest AI and collaboration offerings that are central to Microsoft’s ecosystem.
Security Modernisation: Sentinel to Defender Portal Consolidation
This isn’t a product retirement, but it is a major operational shift.
New sunset date: 31 March 2027
Microsoft has extended the retirement date of the classic Log Analytics based Sentinel portal in favour of the unified Defender security portal, from 1 July 2026 to 31 March 2027. This allows customers to additional time to seamlessly migrate.
This change means:
- Investigation, hunting, and response become Defender centric
- Sentinel continues as a SIEM, but its UI moves into Defender
- SOC teams must retrain on new workflows
- Tooling consolidation may reduce duplicated platforms
This aligns with Microsoft’s broader strategy: unified SIEM and XDR experiences under Defender, reducing complexity and improving correlation across identity, endpoint, network, and cloud workloads.
Conclusion: 2026 Is the Year to Reduce Risk and Remove Roadblocks
The Microsoft products hitting end of support, or undergoing major strategic repositioning in 2026 represent some of the most widely deployed technologies in corporate IT.
Addressing them means reducing security risk, unlocking AI capabilities, and freeing your organisation from legacy technical debt.
Acting on these changes in 2026 will set the foundation for a more innovative future for your organisation.
Not sure where to begin? Reach out to one of our experts using the form below. Tell us the technology you are concerned about and we will be in touch to discuss a solution right for you.
Introduction
Cloud adoption promises agility to build innovation in your IT Infrastructure. And while this is possible, for many organisations, the reality doesn’t match the vision. Costs spiral, security concerns grow, and IT teams become overwhelmed. Why does this happen?
The answer is simple: you need a clear Cloud Operating Model (COM) to navigate successfully to your desired destination.
Life without a COM
- Costs rise as self-service provisioning gets out of control.
- Security becomes harder to maintain as the attack surface expands.
- IT teams drown in user queries instead of driving innovation.
If this sounds familiar, it’s time to rethink your approach.
What is a Cloud Operating Model?
Microsoft defines a Cloud Operating Model as:
“The collection of processes and procedures that define how you want to operate technology in the cloud.”
In other words, it’s your blueprint for managing the operational shift from on-premises IT to cloud-based systems. It covers everything from governance and security to technology management and cultural change. As one of the longest-standing Azure Expert Managed Service Providers, we’ve based our approach to Cloud Operating Models on Microsoft’s proven best practices and tools.
The Five Pillars of a Cloud Operating Model
A strong COM isn’t one-size-fits-all, but successful models share common attributes. Here are the five pillars to consider:
- 24×7 Operations
Successful transformations depend on people, not technology. When you’re in the cloud, the skills your IT teams need will change dramatically. Operations shifting to 24/7 availability amplify this further as employees need to be equipped to deal with any manor of issues at any time. - Technology and Management
Cloud adoption introduces scalability and flexibility, but also complexity. You’ll need new processes and tools for monitoring usage, managing virtual machines, and extracting insights from analytics. This will ensure your environment remains optimised and delivering maximum ROI for your business. - Strategy and Governance
Governance, security, and compliance are non-negotiable when implementing your cloud strategy. When you shift to the cloud your network parameter expands far beyond traditional firewalls, therefore, the treat landscape increases. Adopting frameworks like Zero Trust, and leveraging tools such as Microsoft Defender can help keep your data safe and controlled. - Transition and Change Adoption
Moving to the cloud successfully should be a cultural shift. Slow and mundane processes will become a thing of the past. Adoption means faster development cycles, new financial models (OpEx vs CapEx), and incorporating cloud native practices to quickly meet customer needs. However, it’s vital to manage this new pace of change effectively to be successful. - Account and Relationship Management
Ongoing optimisation and stakeholder engagement ensure your cloud services deliver value. Regular reviews and proactive relationship management help maintain alignment with evolving business priorities.
Next Steps
Ready to dive deeper?
Read the full guide to discover how to build a Cloud Operating Model tailored to your business.
Every IT decision maker understands the importance of a clear cloud strategy. It is not just about where you host your apps. Your strategy must actively support the overall mission of your company. The challenge is that Azure evolves at lightning speed. New features, services, and security standards appear constantly, making it hard for teams to keep up.
This is where many organisations fall into the trap of reactive cloud management. They spend all their time fixing problems and responding to immediate demands. Whereas proactive management requires something different. It needs dedicated expertise that can look years ahead and guide your architecture toward future success.
Reactive vs Proactive Cloud Management
Reactive management focuses on solving today’s issues. Proactive management anticipates tomorrow’s challenges and positions your business to take advantage of new opportunities. Without expert guidance, your cloud strategy risks falling behind. This is what we call ‘strategy drift’.
The Risks of Strategy Drift
When your cloud configuration moves away from best practices, you face three major risks:
- Unnecessary Costs: You miss new cost saving features or fail to adapt to licensing changes.
- Missed Innovation: You do not adopt AI or data services that could give your business a competitive edge.
- Security Gaps: Your architecture fails to keep up with the latest security standards, leaving vulnerabilities unaddressed.
A dedicated expert resource such as a specialist Azure Solution Architect can help to prevent these risks. However, hiring a full time Azure Solution Architect is expensive and for most businesses their expertise is only needed for major projects or complex upgrades. So how do you access that high level insight when you need it most?
Five Expert Tips for IT Decision Makers
To future proof your Azure strategy, here are five essential tips:
- Prioritise Proactive FinOps: Do not wait for the bill to arrive before thinking about costs. Implement automated rules and architectural best practices to ensure continuous cost optimisation.
- Plan for AI Adoption: Azure is rapidly integrating AI features. Your cloud strategy should include a roadmap for leveraging services like Copilot and advanced Data and AI platforms, such as Microsoft Fabric, to drive business growth.
- Strengthen Security Posture: Regularly review your architecture against the latest security standards. Proactive security checks prevent vulnerabilities before they become incidents.
- Align with Sustainability Goals: Track CO₂ emissions in your Azure usage and integrate sustainability targets into your cloud roadmap.
- Leverage Azure Expert Advisory: The best way to ensure your strategy is sound is by partnering with a Microsoft Azure Expert MSP. Selecting the right partner will bring certified expertise and proven experience to help you deliver business value.
CSP+ Delivers Azure Expert Advisory
Our Cloud Direct CSP+ programme is designed to help you close the expertise gap. CSP+ is a tiered model so that you can pick the level of support that your business needs. From the essentials tier where you’ll gain an initial onboarding health check and business hours support. To the enterprise tier for 24×7 support, monthly optimisation reports and access to a dedicated Azure Solution Architect to deliver strategic advisory sessions.
These experts provide ongoing architectural reviews to keep your Azure strategy aligned with your business goals. This includes:
- Strategic Feature Adoption: Guidance on deploying new Azure features safely and effectively.
- Long Term Architecture: Support in designing scalable, resilient, and secure environments.
- Risk Mitigation: Reviewing your environment to eliminate potential security and performance issues before they become incidents.
Expert insight through CSP+ means your internal team is never alone. You have the full weight of a certified Azure Expert MSP behind you, ensuring your cloud platform is architecturally optimised and ready for innovation.
Ready to Strengthen Your Azure Strategy
Stop reacting and start planning for the future. Try our CSP+ calculator to find the right plan for your business. Plus, save on costs instantly.