Tech Users: Virtual desktop infrastructure (VDI) solutions have become very popular in the age of cloud computing and hybrid workspaces. Microsoft provides Windows 365 and Azure Virtual Desktop (AVD), two potent cloud-based desktop options. Although both allow customers to access their Windows experience from any location, their features, pricing structures, use cases, and management capabilities are different.
This article helps you choose the solution that best meets your organizational needs right now by providing a thorough comparison of Windows 365 and Azure Virtual Desktop.
Introduction to Azure Virtual Desktop
Microsoft Azure hosts Azure Virtual Desktop, a versatile VDI solution. It enables IT managers to build and oversee virtual machines (VMs) that provide users with remote desktops and apps. AVD, which was first introduced as Windows Virtual Desktop, offers the resources and infrastructure needed to create unique desktop environments that are suited to particular business needs.
Introduction to Windows 365
Windows 365 is Microsoft’s cloud PC offering, introduced in 2021. It simplifies desktop virtualization by providing a personal Windows desktop in the cloud, accessible through any device. Unlike AVD, Windows 365 operates with a fixed-price model and minimal setup requirements, making it more suitable for non-technical users or businesses without a dedicated IT department.

Key Differences Between Azure Virtual Desktop and Windows 365
Let’s compare the two solutions in depth based on various aspects:
- Deployment and Setup
Azure Virtual Desktop:
AVD requires significant technical knowledge. IT teams must configure host pools, session hosts, virtual networks, user profiles, and application groups. It provides more control and customization but comes with greater complexity.
Windows 365:
Windows 365 offers a streamlined setup process. Users or admins simply assign licenses, and Microsoft handles provisioning. This makes it ideal for businesses that need quick deployment without deep technical expertise.
- Management and Maintenance
AVD:
AVD places more responsibility on IT administrators. You must manage VM sizing, scaling, updates, backup, and security. It’s more labor-intensive but offers deeper control.
Windows 365:
With Windows 365, Microsoft handles most of the backend management. Updates, maintenance, and uptime are managed automatically, reducing the burden on internal IT teams.
- User Experience
Azure Virtual Desktop:
AVD supports multi-session desktops, which means multiple users can share a single virtual machine. It also supports application streaming, giving users access to specific applications rather than the full desktop.
Windows 365:
Windows 365 offers a single-user, persistent desktop. Each user has their own cloud PC with consistent settings, files, and applications across sessions. It feels like using a personal physical PC in the cloud.
- Scalability
AVD:
Highly scalable. Organizations can dynamically scale up or down based on demand, which is ideal for seasonal businesses, temporary projects, or educational institutions.
Windows 365:
Limited scalability. Licenses are tied to specific users, and scaling up requires assigning more licenses. It’s designed for stability over flexibility.
- Customization
Azure Virtual Desktop:
Offers extensive customization. Admins can choose from a wide range of VM sizes, storage types, and OS versions. You can also integrate with third-party solutions for identity, security, or monitoring.
Windows 365:
Limited customization options. Users can select between predefined plans (Business or Enterprise) and choose from various performance tiers (e.g., 2vCPU/4GB RAM to 8vCPU/32GB RAM). Custom VM configurations are not available.

- Pricing Model
AVD:
Based on Azure consumption. You pay for what you use — including compute, storage, and networking. While cost-effective for large or variable workloads, billing can be complex to estimate and manage.
Windows 365:
Uses a fixed monthly subscription model. Pricing is predictable and based on the selected performance tier. It’s easier to budget, especially for smaller organizations or those with steady desktop usage.
- Security and Compliance
Azure Virtual Desktop:
AVD offers granular security configurations. You can enforce policies via Microsoft Defender for Endpoint, configure Conditional Access, use Azure AD integration, and deploy custom security frameworks.
Windows 365:
Offers strong built-in security powered by Microsoft 365 security features. While not as customizable as AVD, it’s secure by default and supports integration with Microsoft Endpoint Manager and Azure AD.
- Integration with Microsoft Ecosystem
AVD:
Deeply integrates with Microsoft Azure, allowing connections with services such as Azure Files, Azure NetApp Files, and Microsoft Defender. It’s great for businesses already invested in Azure infrastructure.
Windows 365:
Integrates well with Microsoft 365 services such as OneDrive, Teams, and SharePoint. It can also be managed via Microsoft Intune and offers seamless integration for end users.
- Target Audience
Azure Virtual Desktop:
Best suited for larger enterprises, education institutions, call centers, software developers, or organizations with complex IT environments that need high flexibility.
Windows 365:
Ideal for small to medium-sized businesses, frontline workers, remote teams, or startups that want a plug-and-play virtual desktop solution with minimal management overhead.

Pros and Cons Summary
Azure Virtual Desktop
Pros:
- Flexible and highly customizable
- Supports multi-session VMs
- Ideal for dynamic workloads
- Deep integration with Azure ecosystem
Cons:
- Requires advanced IT knowledge
- Complex pricing model
- Higher management overhead
Windows 365
Pros:
- Easy to deploy and use
- Predictable pricing
- Persistent user experience
- Minimal IT involvement required
Cons:
- Limited customization
- Fixed-cost model may not suit variable workloads
- No multi-session support
Use Case Scenarios
Example 1: Enterprise Software Company
A software company with developers needing different configurations and secure remote access to development environments would benefit from Azure Virtual Desktop due to its flexibility and scalability.
Example 2: Small Marketing Agency
A small agency with ten employees working remotely would prefer Windows 365 for its simplicity, fixed cost, and ease of deployment.
Example 3: Educational Institution
A university that runs virtual labs for hundreds of students during peak academic seasons can utilize AVD’s multi-session capabilities and dynamic scaling.
Conclusion
Both Azure Virtual Desktop vs Windows 365 are powerful solutions in the world of virtual desktops — but they serve different purposes.
Choose Azure Virtual Desktop if your business needs high flexibility, scalability, and you have the technical capabilities to manage complex environments.
Choose Windows 365 if you need a simple, stable, and easily manageable cloud PC experience with predictable costs.
When choosing between the two, consider your organization’s size, technical expertise, workload variability, and budget. By understanding these two offerings deeply, you can make a strategic decision that aligns with your digital transformation goals.