March 24, 2025
Windows 365 and Azure Virtual Desktop are both Microsoft cloud computing services that deliver virtual desktops, but they have different approaches and use cases.
Having multiple options isn’t a bad thing, but having multiple options with a lack of clarity can bog down decision-making. So in this blog, I’ll try to highlight the clear differences between the two. But first, let’s review the basics.
What Are the Benefits of Virtual Desktops?
A virtual desktop is a software-based computer desktop environment, which means it’s accessible remotely from any device with an internet connection.
So here are a few obvious benefits of having a virtual desktop:
- Security policies and updates can be applied to all devices organization-wide
- Lost devices won’t put sensitive data at risk
- Your devices don’t need to be as high-end to run sophisticated software
- Device onboarding and management are faster and easier
- It provides a consistent user experience from anywhere
- There are built-in disaster recovery capabilities
What’s the Same Between Windows 365 and Azure Virtual Desktop?
Okay, here’s where things can get a little confusing: You can access both a Windows 365 virtual desktop and an Azure Virtual Desktop (AVD) at the same time through the Windows app, so you can connect to both services through a single interface.
The underlying technology behind both systems is very similar and they also provide a very similar end-user experience. That can make it tempting to decide between the two based on cost. But that’s not what I’d recommend.
What's the Difference Between Windows 365 and Azure Virtual Desktop?
Windows 365 and AVD have different pricing models, so let’s discuss that before we move on to more important matters.
Pricing Model
Windows 365 has a fixed monthly cost per user. AVD, on the other hand, uses a pay-as-you-go model, where the cost goes up the more the service is used.
Therefore, generally speaking, small and medium-sized businesses tend to benefit from Windows 365's pricing, while AVD is often a more cost-effective option for businesses that use pooled desktops.
Microsoft Management
Windows 365 is managed by Microsoft, and Microsoft has made this desktop-as-a-service (DaaS) easy. Depending on how you use it, you may pay a little more, but you won’t have to do as much heavy lifting.
AVD can cost less in some circumstances, but it’s not managed by Microsoft. You’ll have more flexibility when it comes to configuration and deployment, but you’ll have more responsibility to manage your virtual desktop yourself.
When Should You Use Windows 365’s DaaS Solution?
Every organization is different, but if the following descriptions sound familiar, I’d probably recommend Windows 365 over Azure:
1. You Don’t Have the IT Resources
If your IT team doesn’t already have the skills needed to implement desktop virtualization, you should probably go with Windows 365. Yes, these skills are nice to have, but it’s probably not worth adding a new full-time team member solely for this purpose.
If you don’t already have someone on the team with first-hand experience in multi-session administration, profile encapsulation, auto-scaling, and more, your decision is simple.
2. You Have Fewer Than 10 Desktops
If you have a small number of users and want virtual desktops without technical complexity, here’s why Windows 365 is probably the better option:
- No prerequisites are needed (unlike Azure Virtual Desktop)
- No Active Directory configuration is required
- There’s no FSLogix container storage setup
- You get simpler deployment and management
- It’s more cost-effective for small deployments
3. Your Users Need Continuous Access
If your staff needs to be able to access their desktop at any time, or over 50 hours a week, you’ll save more money — and more time — with Windows 365.
4. You Use Microsoft Intune, But Not Azure
If you’ve heavily embraced cloud computing solutions and don’t need sophisticated Azure infrastructure, it’s not worth using Azure just for desktop virtualization. Plus, if you already use Microsoft Endpoint Manager, you can use similar policies to manage virtual desktops in Windows 365.
5. Your Users Don’t All Have the Same Needs
Windows 365 makes it easier to grant individual users administrator privileges so they can manage their own virtual machines and download the software they need.
Why Choose Azure Virtual Desktop?
If you’re not a lock for Windows 365, here are some scenarios where Microsoft Azure would make more sense:
1. You’re App-Focused
Here’s why Azure’s solution may be a better fit in this scenario:
- Its RemoteApp publishing capability lets staff access specific applications rather than entire desktops
- Users can share virtual machine (VM) resources to reduce costs
- Ift offers better compatibility, especially for legacy apps that require specific configurations
- You’ll have more control over deployment, updates, and customization
- It integrates better with app delivery infrastructure and management tools
- You get more flexibility for apps with varying usage patterns
- It’s optimized for apps that need to be accessed by many users but don't require dedicated resources
Essentially, Azure Virtual Desktop was designed with application virtualization as a core feature, while Windows 365 is more focused on providing complete personal desktop experiences.
2. Your Users Fluctuate
If your user numbers change from month to month, you may save money with Azure, because you only pay for what you use.
3. Saving Money Is More Important Than Saving Time
When saving money is your main goal and you can put multiple users on shared virtual machines, Azure’s Virtual Desktop will likely be cheaper.
The Quick and Easy Way To Make the Most of Microsoft
If you’re hoping to simplify device and user onboarding, provide a better new-hire experience, and free up your IT team’s time, we offer comprehensive infrastructure as a service (IaaS), which includes desktop virtualization.
However, we’ve also designed a new offering that provides a middle-road option — somewhere in between managed IT and à la carte IT support services — to help clients secure and optimize their Microsoft environment — including virtual desktops. Click the link below to learn more!
