Virtual desktop infrastructure (VDI) isn’t just about remote access anymore. It’s a key part of IT strategies, especially for companies using hybrid work or centralizing their desktop environments.
Two Microsoft options dominate the conversation: Azure Virtual Desktop (AVD) and Windows 365.
Both offer secure access to user desktops and applications through the cloud, but they take very different approaches. AVD provides deep control and flexibility, while Windows 365 is built for simplicity and predictability.
Understanding those differences is critical before rolling out cloud PCs at scale.
Azure Virtual Desktop: Flexibility at Scale
Azure Virtual Desktop (AVD) is a fully managed VDI service built on Microsoft Azure. It’s designed for organizations that need to support a wide range of use cases, from knowledge workers to developers working on resource-intensive applications.
AVD makes sense when you need control over how virtual machines are configured, deployed, and managed. It integrates directly with your Azure subscription and existing Microsoft tools like Active Directory and Microsoft 365.
Key benefits:
Multi-session Windows 10/11 support: Host multiple users on a single virtual machine to reduce infrastructure costs.
Centralized management and policy control: Use Group Policy, Intune, or third-party tools to manage desktop sessions and application delivery.
Optimized for scalability: Scale resources up or down based on demand, paying only for what you use.
Supports custom workloads: Ideal for software developers, engineers, or any team that requires a tailored virtual desktop environment.
Granular cost control: Use auto-scaling and reserved instances to manage spend, a key factor in long-term cost savings.
Best Use Cases for AVD
AVD is built for IT teams that want a VDI deployment tailored to their environment, not a one-size-fits-all solution. It shines in:
- Large enterprises needing centralized desktop management.
- Organizations running legacy apps that require Windows Server compatibility.
- Businesses looking to support multiple users per virtual machine.
- Environments where integration with existing infrastructure is a must.
Learn more: 7 Ways to Use Microsoft Copilot for Business Leadership
Windows 365: Cloud PCs Without the Complexity
Windows 365 is Microsoft’s Desktop-as-a-Service (DaaS) offering. It delivers a dedicated cloud PC to each user, streamlining desktop access and management across teams of any size. Unlike Azure Virtual Desktop, Windows 365 handles the infrastructure for you—no need to manage virtual machines or backend components.
Windows 365 takes the complexity out of desktop virtualization. It’s designed for businesses that want to move desktops to the cloud but don’t have the resources to run a full VDI deployment.
Key benefits:
Fixed per-user pricing: Predictable monthly costs make budgeting simple.
Dedicated user desktops: Each employee gets their own persistent cloud PC, so there’s no need to manage pooled desktop sessions.
Quick deployment: Spin up user desktops in minutes. No need to configure load balancers or infrastructure components.
Built-in Microsoft 365 integration: Seamless access to Microsoft apps and services already in use by most businesses.
Minimal management overhead: Ideal for companies with limited IT staff or without in-house VDI expertise.
Best Use Cases for Windows 365
Windows 365 is a good fit when speed, simplicity, and predictability are more important than deep customization. It’s often the right choice for:
- Task workers and frontline employees who need reliable, secure access to core apps.
- Organizations scaling quickly or supporting remote onboarding.
- SMBs that want virtual desktops without the hassle of managing virtual machines.
- Teams using Microsoft 365 as their primary toolset.
Learn more: Business and IT Alignment: Why Is It So Important?
Comparing Azure Virtual Desktop and Windows 365 at a Glance
| Feature | Azure Virtual Desktop | Windows 365 |
| Deployment Type | Virtual desktop infrastructure (VDI) on Azure | Desktop-as-a-Service (cloud PC) |
| User Model | Multi-session, shared desktops | Single-user, dedicated desktops |
| Management | Full control over virtual machines | Simplified via Microsoft portal |
| Scalability | High — supports custom scaling | Linear — per-user provisioning |
| Pricing | Usage-based (Azure resources) | Fixed monthly cost per user |
| IT Involvement | Requires setup and maintenance | Minimal — managed by Microsoft |
| Best For | Enterprises, complex environments | SMBs, lean IT teams |
Cost Considerations: Predictable vs. Flexible
Cost plays a major role when comparing Azure Virtual Desktop and Windows 365. While both offer cloud-based desktops, the pricing models are structured very differently, and that affects long-term budget planning.
AVD: Pay for What You Use
AVD gives you granular control over resource allocation and spend. Costs vary based on your Azure subscription usage—CPU, RAM, storage, and data transfer.
Key points:
- Usage-based billing tied to Azure infrastructure.
- Opportunities for cost savings using auto-scaling, reserved instances, and multi-session VMs.
- Potential for unexpected costs if sessions aren’t managed or right-sized.
AVD works well when you need flexibility and have the internal resources to optimize spend across your virtual desktop infrastructure.
Windows 365: Flat Monthly Pricing
Windows 365 is priced per user, per month. It’s simple, easy to forecast, and includes everything: compute, storage, and licensing.
Key points:
- Fixed monthly cost per cloud PC, based on selected hardware profile.
- No separate Azure charges or infrastructure planning.
- Easier to predict and scale for finance teams.
This model is ideal for businesses looking for cost predictability and minimal IT overhead.
Learn more: A Guide to Understanding the Cloud Shared Responsibility Model
Which Virtual Desktop Operating System Fits Your IT Strategy?
Choosing between AVD and Windows 365 depends on how much control you want over your virtual desktop environment, how much flexibility you need, and how your teams work.
When to Choose AVD
- You manage a large VDI deployment and need scalability.
- Your team runs custom apps or needs Windows Server compatibility.
- You want to support multiple users per VM to optimize infrastructure.
- Your IT staff has experience managing Azure resources and policies.
When to Choose Windows 365
- You need fast onboarding for task workers or remote teams.
- Your IT team is lean, and simplicity is a priority.
- You prefer flat, per-user costs with no infrastructure management.
- Your business already uses Microsoft 365 and wants seamless integration.
Next Steps: Build the Right Virtual Desktop Strategy
Azure Virtual Desktop and Windows 365 both deliver secure, cloud-based desktops, but they serve different strategies. Making the right call means knowing how each model supports your users, budget, and infrastructure roadmap.
Not sure which direction fits your IT strategy best?
Talk to the cloud consultants at Davenport Group. We’ll help you map out the right solution, optimize for cost, and align your VDI approach with your business goals. No pressure, no sign-up, just good advice.
