Azure Virtual Desktop
VDI without the VDI infrastructure.

Azure Virtual Desktop (AVD), formerly Windows Virtual Desktop, is Microsoft's cloud-hosted Windows desktop service. Customers deploy host pools of Windows 11 (or Windows 10) virtual machines in Azure, and users connect from any device with a browser or Remote Desktop client. AVD uniquely supports multi-session Windows 11 Enterprise — multiple users on the same VM — which is not available outside AVD. Use cases include hybrid work, BYOD, contractor access, compliance-bounded data environments, and offshore team enablement. Microsoft licenses AVD as part of several M365 SKUs at no additional licensing cost — the customer pays only for the underlying Azure compute consumption.

Both are Microsoft cloud-hosted Windows desktops, but the model differs. AVD is infrastructure-as-a-service — the customer manages host pools, scaling, images, and storage. AVD supports multi-session Windows 11 Enterprise for cost efficiency. Windows 365 Cloud PC is desktop-as-a-service — Microsoft handles all infrastructure and the customer just assigns Cloud PCs to users at a flat per-user monthly rate. Windows 365 is always single-session (one user per VM). For pooled workloads at scale, AVD is more cost-efficient. For straightforward per-user desktop assignment with predictable cost, Windows 365 is simpler. Both can coexist.

AVD makes sense when: (1) the data should not live on the endpoint — compliance, IP, or security policy reasons; (2) users need Windows access from non-Windows devices — BYOD Mac, iPad, Chromebook scenarios; (3) workforce is highly variable — contractors, seasonal workers, offshore teams where laptop provisioning is overhead; (4) the application stack runs better in Azure — legacy applications, line-of-business systems, or applications with significant data gravity in Azure. Traditional laptop deployment still makes sense for the bulk of standard knowledge workers where data residency is not a blocker and the user benefits from a local device.

AVD has two cost components. (1) Licensing — AVD is included at no additional cost with M365 E3, E5, F3, A3, A5, Business Premium (for users), Windows 10/11 Enterprise E3/E5, and Windows 10/11 Education A3/A5. Most organizations already license AVD via M365. (2) Azure compute consumption — the VMs, storage (Azure Files for FSLogix), bandwidth, and supporting services are charged at Azure rates. Typical mid-market deployments run $40-$120 per user per month in Azure consumption for pooled multi-session hosts, $90-$250 per user per month for personal single-user hosts. WCC management adds typically $15-$30 per user per month covering design, deployment, monitoring, and cost optimization.

Yes. AVD is commonly deployed for compliance scenarios where data should not touch endpoints. For HIPAA, AVD provides a controlled ePHI environment with audit logging, encryption, and network isolation. For GLBA financial services, AVD supports the encrypted-everywhere requirement for customer information. For NIST 800-171 federal contractors handling CUI, AVD on GCC High provides the controlled environment required by 800-171. Each compliance scenario has a different AVD configuration — commercial AVD for HIPAA and GLBA, AVD on GCC High for CUI.

For Microsoft-centric environments, AVD has become the default choice. AVD is cheaper (no third-party licensing on top of M365), supports multi-session Windows 11 Enterprise (Horizon and Citrix cannot — Microsoft licenses multi-session exclusively to AVD), is natively integrated with Entra ID and Intune, and runs in Azure where most Microsoft customer data already lives. Horizon and Citrix have advantages for non-Microsoft environments, very large enterprise deployments (5,000+ users), and specialized use cases (GPU-heavy workloads, sub-second response requirements). For SMB and mid-market Microsoft customers, AVD is usually the right answer. See VMware alternatives for environments migrating from Horizon.