Azure Virtual Desktop (AVD)
Microsoft’s cloud-hosted virtual desktop service in Azure. The most flexible — and most complex — DaaS platform in the Microsoft world. When is AVD the right choice, and what sets it apart from Windows 365 and Citrix?
What is Azure Virtual Desktop?
Azure Virtual Desktop (AVD) is Microsoft’s Platform-as-a-Service (PaaS) for virtual desktops and published applications. Microsoft runs the Control Plane (broker, gateway, diagnostics); the customer provides the Session-Host-VMs in their own Azure tenant and pays for them by consumption.
AVD is the successor to Windows Virtual Desktop (WVD) and shaped by two characteristics: Windows 10/11 Enterprise Multi-Session (several users on one VM, per Microsoft documentation only for AVD and Windows Server) and deep integration with Microsoft Entra ID, Intune and Microsoft 365.
An important distinction: AVD is not a finished Cloud PC the way Windows 365 is. It is a construction kit — maximum flexibility, but also maximum management effort. Anyone wanting a click-and-done Cloud PC is better served by Windows 365.
Architecture: who does what?
AVD is a shared responsibility between Microsoft and you as the customer:
| Component | Responsible | Task |
|---|---|---|
| Connection Broker | Microsoft | Routes user sign-ins to available session hosts |
| Gateway | Microsoft | An encrypted RDP tunnel, with no VPN exposure needed |
| Diagnostics service | Microsoft | Logs, insights, session data |
| Session host VMs | Customer | The Azure VMs on which user sessions run |
| Host Pools | Customer | Logical groups of session hosts (personal or pooled) |
| FSLogix Profile | Customer | User profiles on Azure Files or NetApp Files |
| Identity | Customer | Entra ID / AD DS / Entra Domain Services |
Host pool types
- Personal (1:1) — each user gets a dedicated VM. Full personalisation. The highest cost. Good for developers, CAD users and power users.
- Pooled (Multi-Session) — several users share one VM through Windows 10/11 Enterprise multi-session. Lowers the compute share per user; how much depends on session density and user profile. Good for office tasks, help desks and education.
Core features at a glance
- Multi-Session Windows — exclusive to AVD: several users on one VM. Lowers the compute share per user, depending on session density and user profile.
- RemoteApp — publishing individual applications instead of a full desktop. Users see the application as though installed locally.
- FSLogix Integration — profile containers for fast sign-in (3 to 5 seconds instead of 30 to 60).
- App Attach — applications in container images (CimFS or VHDX; Microsoft does not recommend VHD), added dynamically to the session. No image bloat. Replaces MSIX App Attach, which was retired on 1 June 2025.
- GPU acceleration — the NVv4 and NCas series for CAD, video editing and 3D rendering.
- Scale-to-Zero — deallocating VMs outside working hours. You pay only for active hours.
- Multi-Region Deployments — host pools can be distributed worldwide using Traffic Manager.
- Azure Monitor Integration — Log Analytics for session performance, sign-in times and errors.
AVD vs Windows 365 — which and when?
The most common decision in Microsoft DaaS projects:
Azure Virtual Desktop (AVD)
- Pricing modelPay-as-you-go Azure VMs
- SetupComplex — Azure expertise required
- FlexibilityMaximum — any VM size, GPU or region
- Multi-SessionYes — savings depend on session density
- Suited toEnterprises with an Azure team and complex workloads
Windows 365
- Pricing modelA fixed price per user per month
- SetupSimple — managed through Intune
- FlexibilityFixed — predefined Cloud PC sizes
- Multi-SessionNo — every Cloud PC is dedicated
- Target groupSMEs, hybrid work, predictable costs
Faustregel: Below 200 users and without an Azure team → Windows 365. Above 500 users with CAD or specialised applications → AVD. In between, often a mixture of the two — which is also the approach Microsoft recommends.
Cost example: 100 task workers
100 office users (Word, Excel, Outlook, Teams) in Azure West Europe, 9 h a day, 22 working days a month:
| Configuration | VMs for 100 users | Running time |
|---|---|---|
| Personal desktop1 user = 1 D4s_v5 | 100 | around the clock |
| Personal + autoscalingdeallocated at night and at weekends | 100 | about 9 h on 22 working days |
| Multi-session16 users per E8s_v5 | 7 | around the clock |
| Multi-session + autoscalingwith scaling down to zero | 7 | about 9 h on 22 working days |
Compared with Windows 365: a Cloud PC costs a fixed amount per user per month, regardless of usage. AVD is billed by consumption and is cheaper at good utilisation — but adds operational effort for image management, FSLogix and scaling configuration. Actual amounts depend on region, contract model and reservations; use the Azure pricing calculator for a sound figure.
Additional costs, easily overlooked
- Storage: FSLogix profiles on Azure Files or Azure NetApp Files
- Networking: VNet, NAT Gateway, ExpressRoute where needed
- Log Analytics: Azure Monitor with AVD Insights, billed by data volume ingested
- Management tool: Nerdio, Hydra or ControlUp, charged per user per month
Licensing: who may use AVD?
One of the following licences per user is required — the AVD operating system (Windows 10/11 Enterprise, multi-session) is included, at no extra cost:
- Microsoft 365 E3, E5, F3 (the most common)
- Microsoft 365 A3, A5 (Education)
- Microsoft 365 Business Premium (KMU)
- Windows 10/11 Enterprise E3, E5 (standalone)
- Windows VDA (for legacy or non-Windows devices)
Not sufficient: Microsoft 365 Business Standard, E1 or Office 365 alone. Without the Windows Enterprise component there is no AVD.
For third-party applications on AVD
Adobe, AutoCAD, SAP and others sometimes have their own rules for virtualisation. As a rule of thumb: where the application uses a named-user licence, running it on AVD is usually fine. Where it uses a concurrent-user licence, check the contract terms.
Management tools: what do you run AVD with?
| Tool | Focus | Note |
|---|---|---|
| Azure Portal | Basic operation, free of charge | Native to Microsoft — adequate for small deployments |
| Nerdio Manager | Autoscaling, image management, cost optimisation | One of several management layers; alternatives include Hydra and ControlUp |
| Intune | Endpoint policies, application deployment, compliance | For Entra ID-joined session hosts |
| Login Enterprise (Hydra) | Load testing, user density measurement | For capacity planning and benchmarking |
| ControlUp | Performance monitoring, end-user experience | Detailed insight for operations |
| Sepago Monitor | Monitoring focused on the DACH region | German vendor, AVD-specific |
When is AVD the right choice?
AVD plays to its strengths in the following scenarios:
- Azure-first strategy — you already have Azure expertise, workloads in Azure, Entra ID.
- Large user numbers — from around 200 to 500 users, multi-session becomes economically attractive.
- Heterogene Profile — some users need a GPU, others a standard machine, others multi-session. AVD covers all of it.
- Seasonal scaling — pay-as-you-go allows rapid scaling up and down.
- Global deployments — multi-region setups with local host pools are possible.
- Regulierte Branchen — full control over networking, encryption and audit logs.
When AVD is not the answer
- No Azure team — setup and operation overwhelm many smaller IT departments
- Predictable costs are wanted — without autoscaling configured, pay-as-you-go can become expensive
- Multi-cloud strategy — anyone wanting to include AWS or GCP is better served by Citrix DaaS
- Schnelles Time-to-Market — Windows 365 Cloud PCs are ready in minutes; AVD takes days to weeks
Placing AVD in the DaaS landscape
DaaS Maps sets AVD in a direct feature comparison against Windows 365, Citrix DaaS, Omnissa Horizon and other platforms — including real cost calculations and density figures. For discussion of AVD architecture, you will find me on LinkedIn.