Windows 365 vs. Azure Virtual Desktop: Which is Right for Your Business?

Since the COVID-19 pandemic, organizations have shifted their workforce to remote and hybrid operations. This transition has birthed a new demand for cloud-based desktop solutions to let employees access their desktops from anywhere.

The demand for these solutions spotlights services like Windows 365 vs. Azure Virtual Desktop (AVD). These two services move desktop environments to the cloud, facilitating collaboration between teams. However, they’re different, and each solution has benefits and limitations. Windows 365 offers a simplified, fixed-cost model ideal for straightforward deployments, whereas AVD provides more customization and flexibility for complex environments.

Evaluating the differences between each option can help you align your virtual desktop strategy with operational requirements and budget. Your organization can optimize performance and cost effectively by choosing the right virtual desktop solution based on specific needs, growth potential, and IT management capabilities.

What is Windows 365?

Windows 365 is a cloud-based service that provides users with a virtual machine, a Cloud PC, that runs Windows 10 or 11. It creates a new virtual environment allowing users to access their applications and data remotely from any device with an internet connection.

When Microsoft unveiled Windows 365 in 2021, it allowed users to collaborate and stay connected by combining the convenience of cloud computing with the familiar interface of Windows.

Streaming Windows 10 or 11 desktops with all apps and settings intact is a key feature of Windows 365, and it makes working from different devices easy for users. This supports remote workforces and provides secure access to specialized applications, ideal for businesses looking for flexible, scalable, and manageable desktop solutions.

Windows 365 also simplifies IT management by providing each individual with their own Cloud PC and allowing them to access their personalized desktop from any device with an internet connection without requiring additional hardware.

Windows 365 is available in different plans:

• Windows 365 Business: Designed for small and medium-sized businesses with users not exceeding 300, this offering provides a simplified cloud PC experience, letting employees access their personalized Windows environment from any device.
• Windows 365 Enterprise: Geared towards large businesses with more complex IT requirements. It includes advanced features such as enhanced security protocols, scalability options, and integration with enterprise-grade tools like Azure Active Directory and Microsoft Endpoint Manager.
• Windows 365 Government: This version is specifically designed for government agencies and adheres to strict security standards required for public sector organizations. It provides a secure cloud PC environment while ensuring that sensitive data remains protected by governmental regulations.
• Windows 365 Frontline: This cost-saving plan is tailored for part-time and shift workers who need quick access to essential applications and data. This offering allows organizations to provide lightweight, cost-effective cloud PCs that enable frontline employees to perform their tasks efficiently.

Each Windows 365 sub-offering is designed to address specific user needs and organizational sizes.

Features of Windows 365

Windows 365 offers a range of core features that can transform your organization by helping you stay productive, secure, and connected. These features include:

• Fully managed cloud PC experience: Windows 365 allows your team to access a personalized Windows desktop environment from any device, eliminating the complexities of traditional desktop management, as Microsoft handles all updates, security patches, and maintenance.
• Persistent desktop environment: This feature guarantees a consistent experience, similar to traditional physical desktops. Users can access their files from any device without resetting after every use, so their configurations are retained each time they log in.
• Easy scalability for businesses: Windows 365 lets businesses of any size adjust subscriptions based on workforce changes so they pay only for the resources they need.
• Seamless integration with Microsoft 365 apps: Integration with other Microsoft apps provides access to familiar Microsoft 365 applications, such as Word, Excel, Teams, and OneDrive, directly from their Cloud PCs.

The features of Windows 365 keep business operations simple and cost-effective and allow your business to grow. The familiar Windows experience makes it ideal for organizations seeking productivity.

Technical Architecture of Windows 365

Windows 365 is built on a robust technical architecture that utilizes Microsoft Azure’s cloud capabilities to deliver virtual desktop experiences known as Cloud PCs. The architecture consists of several key components:

• Cloud PCs: At the core of Windows 365 are the Cloud PCs, virtual machines running Windows 10 or 11 in the Azure environment. These Cloud PCs can be provisioned for users based on their specific needs, allowing for a personalized computing experience accessible from various devices.
• Security Features: Windows 365 is designed with security in mind, incorporating features such as multi-factor authentication, data encryption, and compliance with regulatory standards. These measures protect sensitive information while providing a secure environment for users.
• Microsoft Entra ID (formerly known as Azure Active Directory): Windows 365 employs Azure Active Directory for identity management and authentication, which secures access to Cloud PCs and integrates with existing on-premises Active Directory services.
• Network Infrastructure: The architecture supports various network configurations, allowing organizations to choose between using Microsoft-managed networks or integrating their Azure networking solutions.
• Integration with Microsoft Intune (formerly known as Microsoft Endpoint Manager): Windows 365 utilizes Microsoft Endpoint Manager (Intune) to manage Cloud PCs. This integration allows IT administrators to configure, monitor, and secure physical and virtual endpoints from a single management console.

The technical architecture of Windows 365 combines cloud computing power with integrated management tools and security features, creating a seamless virtual desktop experience.

Benefits of Windows 365

Since its launch, over one million companies in the US alone have deployed Windows 365 for the transformations it brings to businesses. Let’s unpack some of the benefits.

• Simplified IT management: Through Windows 365, your IT teams can easily update and monitor Cloud PCs. The centralized management capabilities benefit the teams by reducing administrative overhead and allowing easy troubleshooting.
• Consistent user experience: With Windows 365, once an individual logs in, their profile automatically syncs through OneDrive. This synchronization provides a consistent experience across both operating systems, ensuring they can access files, settings, and preferences up-to-date, whether using Windows 10 or 11.
• Predictable subscription pricing: Windows 365 offers organizations a fixed monthly cost per user, which is ideal for budgeting and financial planning. The straightforward pricing eliminates unexpected expenses that come with fluctuating costs.
• Rapid deployment for remote workforces: Windows 365 facilitates rapid deployment through a smooth process where organizations provision Cloud PCs according to individual user needs.

Windows 365 is a price-effective and complete solution that simplifies an IT team’s job while allowing consistency during access.

What is Azure Virtual Desktop?

AVD is a flexible cloud-based virtual desktop infrastructure (VDI) solution provided by Microsoft that enables users to access secure remote desktops and applications from anywhere.

Previously known as Windows Virtual Desktop (WVD), AVD provides more advanced customization and flexibility than Windows 365. With AVD, IT teams can tailor their virtual desktop environments to fit different needs.

Key customization options include deploying different operating system images for production workloads, configuring application access based on user roles, and managing user data storage through various options like OneDrive.

AVD is best suited for medium to large enterprises that require robust remote work solutions, particularly those with diverse user needs and varying workloads.

Organizations utilizing AVD can choose between two types of user experience: RemoteApp and Full session.

• RemoteApp: This experience allows users to access individual applications hosted on a server rather than a complete desktop environment. Users can run specific applications similar to those installed locally on their devices without navigating a full desktop interface.
• Full Session: In this setup, users access a complete Windows desktop environment hosted in the cloud. This experience resembles using a local PC, allowing users to interact with the entire operating system, manage files, and run any installed applications.

With these two options, you can choose the most suitable experience based on user needs and application requirements and improve flexibility and efficiency.

Features of Azure Virtual Desktop

Azure Virtual Desktop offers a range of core features designed to enhance the deployment and management of virtual desktops and applications:

• Virtual Machines (VMs): Azure VMs, also called session hosts, are virtual desktops or remote desktop session hosts where users interact with their Windows desktops or apps. These VMs run Windows 10, Windows 11, or Windows Server operating systems.
• Host Pools: A group of session host VMs that users connect to within Azure Virtual Desktop. Host pools can be configured as pooled (multiple users share VMs) or personal (each user is assigned a dedicated VM), depending on deployment and user experience needs.
• Scale Sets: Azure Virtual Machine Scale Sets enable automatic scaling of session hosts in response to user demand. By dynamically increasing or decreasing the number of active VMs, this helps maintain performance during peak usage while reducing costs during off-hours.
• Multi-session capabilities: AVD enables multiple users to connect to a single Windows virtual machine simultaneously, optimizing resource usage and reducing costs.
• High customizability and configurability: Administrators can tailor operating system and application deployments to meet organizational needs and create custom images for session host virtual machines, ensuring that configurations meet organizational standards and requirements.
• Optimized for specific workloads: By tailoring the virtual machine configurations, AVD can be optimized for specific workloads and resource allocations to match the demands of different user scenarios.
• Comprehensive security and compliance options: Built on Azure’s security framework, AVD incorporates advanced security measures such as multi-factor authentication, role-based access control, and compliance with regulatory standards, ensuring that sensitive data remains protected.

If you utilize Azure Virtual Desktop, you’ll enjoy its multi-session capabilities, customizability, and security, among other features.

Technical Architecture of Azure Virtual Desktop

AVD has a sophisticated technical architecture designed to provide a secure, scalable, and efficient virtual desktop experience. This architecture comprises various components that connect users to their desktops and applications seamlessly. Here are several of the key aspects of AVD’s technical architecture:

• Control Plane: Manages core services such as web access, gateway, connection broker, and diagnostics. This layer orchestrates user connections and ensures smooth operation across the environment.
• Web Access Service: Provides users with access to their virtual desktops and applications through an HTML5-compatible web browser, allowing for flexibility in how users connect to their resources.
• Remote Connection Gateway: Facilitates secure remote access by connecting users to their AVD applications and desktops from any internet-connected device. It handles the Remote Desktop Protocol (RDP) connections necessary for user sessions.
• Virtual Network Configuration: Enables private communication between Azure resources, facilitating secure interactions between VMs and other services while allowing connections to on-premises networks through VPN or ExpressRoute.

AVD’s resilient technical architecture, which involves multiple managed components and services, lets the service deliver the ideal virtual desktop solution for organizational needs.

Benefits of Azure Virtual Desktop

Remote working doesn’t have to be risky or costly. Azure Virtual Desktop empowers you to improve remote work capabilities while providing other benefits such as:

• Cost-efficiency through shared resources: AVD allows multiple users to share a single virtual machine instance, which maximizes resource utilization. This reduces the need for individual VMs for each user and lowers compute costs.
• Advanced control over user environments: IT administrators can customize, manage, and secure virtual desktops and applications, ensuring consistent policy enforcement and efficient access control.
• Support for complex IT scenarios: AVD supports complex IT scenarios by providing a highly customizable and scalable VDI. IT teams can configure specific environments for different workloads and deploy multi-session desktops for cost efficiency.
• Integration with Azure services for enhanced performance: AVD improves performance through its integration with various Azure services. This integration enables optimized resource allocation and management even during peak usage times.

These benefits position Azure Virtual Desktop as a powerful solution for large organizations looking to modernize their IT infrastructure.

Main Differences: Azure Virtual Desktop vs. Windows 365

Windows 365 vs. Azure Virtual Desktop are Microsoft cloud-based solutions for virtual desktops, but they cater to different needs and offer distinct functionalities.

Windows 365 offers a simplified, fully managed service with predictable pricing. It is ideal for small to medium-sized businesses and frontline workers who require a consistent desktop experience without extensive IT management.

On the other hand, AVD provides greater flexibility and customization options, supporting both single-user and multi-user environments. It’s suitable for larger organizations with diverse workloads that demand scalability and advanced control over their virtual environments.

While Windows 365 is easy to use and manage, AVD requires specialized expertise to set up and maintain.

Management and IT Administration

Windows 365 offers a simplified solution for smaller teams, particularly those with limited IT resources, by providing a fully managed desktop experience that requires minimal IT intervention.

In contrast, AVD offers greater flexibility and control for IT professionals, enabling them to customize virtual environments, manage resource allocation, and implement necessary security measures.

Pricing Models

Before you decide on a solution, evaluating Windows 365 and AVD’s pricing models is prudent. Each has a different pricing structure, offering distinct advantages. Here’s a breakdown to help you choose:

• Windows 365 Pricing: This model’s pricing is predictable, with a flat-rate subscription per user per month. It is advantageous for organizations that require a consistent virtual desktop experience without the complexities of variable costs, as it allows for easy financial planning and management of IT expenses.
• Azure Virtual Desktop Pricing: AVD’s pricing is consumption-based, which is more cost-effective for organizations with fluctuating workloads or seasonal needs. This pricing structure benefits larger enterprises that can optimize costs by scaling resources according to demand, thus avoiding unnecessary expenses during low-usage times.

Windows 365 is ideal for organizations seeking simplicity and cost predictability, while AVD offers flexibility and potential savings for businesses with variable usage patterns.

Scalability and Customization

Windows 365 simplifies scaling for smaller teams by allowing organizations to easily add or remove users and adjust computing resources through a user-friendly interface. This model enables quick adjustments to accommodate workforce changes, making it ideal for businesses with predictable needs.

AVD offers advanced customization capabilities for enterprises with complex IT requirements. It allows for extensive configuration of virtual environments, allowing IT professionals to tailor resources, manage multi-user scenarios, and implement sophisticated security measures. This flexibility works best for larger organizations that require intricate setups to support diverse workloads and user demands.

Windows 365 vs. AVD: Pros and Cons of Each Solution

When comparing Windows 365 and AVD, you should consider the pros and cons of each solution. Windows 365 offers a simplified, user-friendly experience with fixed pricing. However, this simplicity comes at the cost of flexibility and customization.

On the other hand, AVD provides advanced customization capabilities and greater control over virtual environments but demands management and technical expertise.

Windows 365 Advantages

Let’s explore the advantages Windows 365 has to offer:

• Simplicity and ease of use: Windows 365 is easy to set up and manage, and your team doesn’t need IT expertise.
• Predictable costs: The monthly subscription model allows straightforward budgeting without unexpected expenses.
• Seamless integration with the Microsoft ecosystem: This provides a consistent and familiar Windows environment, enabling users to access their desktops and applications from anywhere.

Based on its advantages, Windows 365 is usually ideal for small to medium businesses, particularly those lacking technical resources.

Windows 365 Disadvantages

Here are the cons of Windows 365:

• Less flexibility for IT teams: Compared to AVD, it offers fewer customization options, which may not meet the needs of organizations requiring tailored solutions.
• Higher costs for specific workloads: Since each user is assigned a dedicated Cloud PC, costs can escalate quickly if many users do not consistently use their desktops, leading to higher expenses.
• Limited multi-session support: By providing each user with a Cloud PC, Windows 365 restricts organizations from utilizing multiple concurrent user sessions on a single virtual machine, unlike Azure Virtual Desktop, which allows multiple users to connect simultaneously through its multi-session capabilities.

Due to the limitations of Windows 365, it may be unfit for large organizations with complex systems.

Azure Virtual Desktop Advantages

Below are some of the key advantages of Azure Virtual Desktop:

• High flexibility and configurability: AVD is renowned for its high flexibility and configurability, which allows organizations to tailor their virtual desktop environments to meet specific needs.
• Cost efficiency for shared sessions: Azure Virtual Desktop achieves cost efficiency by enabling multiple users to access a single virtual machine, reducing infrastructure costs.
• Ideal for complex IT environments: AVD is well-suited for complex IT environments due to its customization capabilities and robust management features. If you have diverse operational demands, AVD can help you manage varying requirements while ensuring high security and compliance standards.

AVD is a cost-effective solution for businesses with fluctuating user demands and complex IT environments.

Azure Virtual Desktop Disadvantages

Here’s a breakdown of the disadvantages of Azure Virtual Desktop:

• Steeper learning curve: Azure Virtual Desktop presents a steeper learning curve compared to Windows 365 due to its complexity and the level of technical expertise required for effective management. To leverage its capabilities, administrators must understand Azure services, networking, and virtual desktop infrastructure.
• Higher management overhead: AVD requires ongoing management of resources such as virtual machines and storage. This administrative overhead can be time-consuming and may divert IT resources from other critical tasks.
• Variable costs based on usage: The pay-as-you-go pricing model can lead to unpredictable costs, especially if resource consumption is not carefully monitored. Organizations may incur higher expenses during peak usage times if they do not implement effective cost-management strategies.

While Azure Virtual Desktop provides advanced capabilities, you must also weigh these disadvantages to determine if AVD is the right solution.

How to Choose Between Windows 365 and Azure Virtual Desktop

There is no one-size-fits-all solution for choosing between Windows 365 Cloud PC and Azure Virtual Desktop. The right choice often hinges on several factors, including business size, available IT resources, workload complexity, and budget constraints.

Assessing Your Business Needs

When choosing, you must consider your specific business needs. What’s the size of your remote workforce? What are your scalability requirements and IT management capabilities?

If you have a smaller remote workforce, Windows 365 offers a straightforward solution that allows easy scaling by adding or removing Cloud PCs as needed. AVD is better suited for larger organizations with fluctuating workforce sizes, as it supports both vertical and horizontal scaling through multi-user sessions on shared virtual machines.

If you have limited technical resources, go for Windows 365. It simplifies IT management by allowing Microsoft to handle most updates and maintenance tasks. Conversely, AVD will work well if you have specialized IT skills to manage a complex infrastructure.

Budget Considerations

Budget considerations are important too in aligning the selected solution with your financial goals. Windows 365 has a flat-rate pricing model that simplifies budgeting and financial planning. AVD employs a flexible usage-based pricing model, where costs are determined by resource consumption.

Consulting with Experts

As you consider deploying virtual desktops, consult experts for advice and insights aligning with your business needs. Engaging with professionals allows you to benefit from the best deployment, management, and optimization practices. Additionally, expert consultants assist in identifying potential pitfalls and offer strategies to mitigate risks associated with cloud migration and virtual desktop management.

At eG Innovations, we walk with you and provide you visibility into the virtual desktop infrastructure. We support major technologies, even those that require IT expertise, and diagnose issues quickly.

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As a unified performance management and hybrid cloud monitoring solution for cloud and on-premises infrastructures, we track through every layer and tier. Our flagship product, eG Enterprise, is a performance management solution that performs automated IT performance monitoring and ensures little to no downtime. We help you optimize Windows 365 and Azure Virtual Desktop deployments by providing end-to-end visibility into application performance, infrastructure health, and user experience. Schedule a demo to learn more, or book a free 30-day trial today.