Microsoft to Retire 17 Azure VM Instance Types, Ending Reservations Starting July 2026

Microsoft has announced significant changes to its Azure Virtual Machine offerings, affecting 17 different instance types that will be phased out over the coming years. This regulatory action impacts customers who rely on these specific VM configurations and requires careful planning to ensure business continuity.

Regulatory Action: What Microsoft Has Announced

Microsoft will implement a two-phase retirement process for its Azure VM instances:

1. Reservation Phase End (July 1, 2026): Microsoft will stop accepting new reservations for one-year terms on 17 Azure VM instance types.

2. Complete Retirement (May and November 2028): 13 of these instance types will be completely retired and no longer available for use.

The affected VM families include:

• Av2, Amv2, Bv1
• D, Ds, Dv2, Dsv2
• F, Fs, Fsv2
• G, Gs
• Ls, Lsv2
• Dv3, Dsv3, Ev3, Esv3

What This Requires: Customer Obligations

Customers using these Azure VM instance types must take specific actions to comply with Microsoft's retirement schedule:

1. Assessment: Identify all workloads running on the affected instance types.
2. Migration Planning: Develop a migration strategy to newer Azure instance generations.
3. Testing: Validate that applications function correctly on the new instance types.
4. Execution: Complete migrations before the retirement dates to avoid service disruptions.

Microsoft has published a Retired VM Sizes Migration Guide that provides detailed information on each affected instance type and recommended migration paths.

Compliance Timeline: Key Dates

• July 1, 2026: New reservations for all 17 affected instance types will no longer be accepted.
• May 2028: First wave of retirements for select instance types.
• November 2028: Final retirement of the remaining affected instance types.

Technical Context: Why This Retirement Matters

The affected VM instances primarily utilize Intel Xeon processors from the Haswell (2013), Skylake (2015), and Cascade Lake (2019) generations. These processors represent technology from nearly a decade ago and lack the performance and efficiency characteristics of current-generation hardware.

Microsoft's decision to retire these instances aligns with industry best practices for technology lifecycle management. Newer processors offer:

• Higher core counts and improved performance per watt
• Enhanced security features
• Better virtualization capabilities
• Longer support lifecycles

For customers, this migration presents both challenges and opportunities. The primary challenge is ensuring applications compatibility with newer hardware. However, the migration also provides access to more powerful, efficient, and cost-effective computing resources.

Migration Recommendations

Microsoft recommends the following migration paths based on specific use cases:

• General Purpose Workloads: Consider migrating to Dv4 or Dsv4 series instances
• Memory-Intensive Applications: Ev4 or Esv4 series instances offer improved memory-to-core ratios
• Compute-Optimized Tasks: Fv4 series provides enhanced computational capabilities

Customers should carefully evaluate their current workload characteristics against the Azure VM size documentation to select the most appropriate target instances.

Risk Management Considerations

Organizations with applications dependent on the specific characteristics of the retiring instances should:

1. Conduct thorough compatibility testing before migration
2. Implement phased migrations to minimize risk
3. Maintain contingency plans in case unexpected issues arise
4. Document all changes for compliance and audit purposes

Cost Implications

While the retirement may initially increase migration and testing costs, organizations should consider the long-term financial benefits:

• Reduced operational costs through more energy-efficient processors
• Potential for higher compute density per server
• Avoidance of premium pricing for legacy infrastructure support

Microsoft has indicated that customers with existing reservations will be allowed to continue using their instances until the retirement dates, providing a transition period to complete migrations without service disruption.

Organizations should begin planning immediately to ensure smooth transitions and avoid last-minute complications that could impact business operations.