Azure Virtual Desktop vs Windows 365: Which Works Best for Your Business?

With hybrid and remote working now the norm, giving your team secure access to their desktops from anywhere has never been more important. Microsoft offers two powerful solutions: Azure Virtual Desktop (AVD) and Windows 365. But which one makes the most sense for your organisation?

In this guide, we’ll break down the key differences, benefits, and things to consider when choosing between them, helping you make an informed decision that supports your wider business goals.

What is Azure Virtual Desktop?

Azure Virtual Desktop is a flexible virtual desktop and application service hosted on the Microsoft Azure cloud. Put simply, it allows you to run Windows desktops and applications securely in the cloud, giving staff the same familiar experience as a traditional PC but without the physical hardware.

With AVD, you have fine-grained control over the setup, right down to the applications, security, and compliance measures. You can scale resources up or down as needed, only paying for what you use, which can be a cost-effective option if your staffing levels or workload change over time.

Key advantages of AVD include:

• High degree of customisation and control
• Flexible, pay-as-you-go pricing
• Robust Microsoft Azure security features
• Multi-session support (meaning multiple users can share a virtual machine, which can cut costs)

What is Windows 365?

Windows 365 is a cloud-based service that provides each employee with their own personal “Cloud PC”. It’s designed to deliver a consistent, familiar Windows experience, but hosted securely in the Microsoft cloud.

Where AVD offers flexibility, Windows 365 focuses on simplicity. Microsoft handles most of the setup and management, providing a ready-to-use environment that’s quick to deploy, even if you have limited in-house IT expertise.

Key advantages of Windows 365 include:

• Predictable monthly, per-user pricing
• Quick and simple to set up
• Persistent user experience, each employee keeps their own personal Cloud PC between sessions
• Seamless integration with other Microsoft 365 services
• Microsoft handles infrastructure, reducing IT workload

What’s the Difference?

The easiest way to look at these two services is this:

• Azure Virtual Desktop gives you more control, flexibility, and scalability
• Windows 365 gives you simplicity, predictability, and ease of use

Here’s how they compare on some common decision factors:

Which Should You Choose?

When weighing up these options, ask yourself:

• How much control do we need over our desktop environment?
• Do we have the IT skills in-house to manage a more complex setup?
• Is predictable monthly pricing important?
• Do our staff numbers and workloads change a lot, or are they fairly consistent?
• Are there specific compliance or security requirements we must meet?

Our Experience: When to Transition from Windows 365 to Azure Virtual Desktop

Based on our deployments across a variety of clients, especially those with remote staff or contractors using personal device, we’ve honed some rules of thumb for when to start with Windows 365 and when to graduate to AVD.

1. Small teams without server-hosted applications (≤15 users)

• Windows 365 is ideal if you have up to about 15 knowledge-worker seats and no need for any in-house, server-hosted systems (e.g. an accounts package, CRM, or bespoke line-of-business tool).
• The per-user, per-month model makes billing predictable and gives each user their own dedicated Cloud PC, with almost zero IT overhead to stand up the service.

2. Small teams with server-hosted applications (≤15 users)

• When you still have 15 or fewer users but do require connectivity to on-prem or data-centre host-based applications, AVD is the better fit.
• You can publish both desktops and individual apps, integrate seamlessly with your existing VPN or ExpressRoute, and keep all latency-sensitive services on-site.

3. Cost-optimization and multi-session scaling

• Windows 365 is “one Cloud PC per user” – great for predictability, but harder to shrink outside of user count.
• AVD supports multi-session hosts and scheduled scaling: you can spin up fewer session hosts outside business hours or off-peak days, driving down consumption costs without touching licences.

4. Global workforce with high-latency concerns

• Traditional RDP to local or data-centre servers often struggles with lag for users outside the UK. In our experience, both Windows 365 and AVD. thanks to Microsoft’s global Azure footprint, significantly reduce latency, providing a smooth desktop experience from almost anywhere in the world.

When to re-evaluate

• If you start on Windows 365 and later find you need to host more than 15 users on server-based apps, or require deeper control over session scaling, migrating to AVD can unlock better economics and flexibility without re-architecting your core environment.
• Conversely, if you’ve deployed AVD but have a stable headcount and minimal on-prem dependencies, consolidating to Windows 365 can simplify management and forecasting.

How Avensys Can Help

Choosing between Azure Virtual Desktop and Windows 365 is about finding the right fit for your people, processes, and budget. At Avensys, we help business leaders like you assess what’s needed, compare the options, and deploy the solution that makes the most sense all with minimal disruption.

Whether you need the flexibility of AVD or the simplicity of Windows 365, we’ll make sure your transition to the cloud is smooth, secure, and future-ready.

If you’d like to explore your options further, let’s talk. We’d be happy to guide you through it.