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The reason for the question is that is there a Server Licensing issue with moving from Azure local Cluster to other clusters in the environment.
This limitation with Azure Local only affects Live Migration. So, one option to address this is to move the VMs offline. E.g., just copy files over and import them. Given that a migration from VMware still incurs some downtime, a little more downtime could be tolerable.
With that said, the team is actively working on some other VMware migration options, which could move VMs directly to Windows Server clusters. So, no need to use Azure Local in between, if your end goal is to run on Windows Server.
- DanCuomoMay 13, 2026
Microsoft
Hi paulw2 - Just to add a little more to Artem's response. In Windows Admin Center: Administration Mode, we currently have a conversion tool which can convert VMware VMs to Hyper-V VMs. This is in preview and will be moved to Windows Admin Center: Virtualization Mode in the fullness of time. Hope this helps.
Of course, if Azure Local is your final destination, Azure Migrate can assist with your VMware to Hyper-V conversions.