Azure · Virtual Desktop

Azure Virtual Desktop for SMEs: when it makes sense

A Windows desktop that lives in Azure's Singapore data centres and opens on any laptop, tablet or thin client. Brilliant in the right situation, expensive in the wrong one. Here's how to tell which you're in.

Quick answer Azure Virtual Desktop runs Windows desktops and apps on virtual machines in Azure, which staff open from any device. If your users have Microsoft 365 Business Premium or E3, the access licence is already covered, and you pay only for the Azure infrastructure. It makes sense for contractors, legacy or heavy apps, secure access to sensitive data, and seasonal staff. For a handful of users with simple needs, Windows 365 is often simpler.

What Azure Virtual Desktop actually is

Instead of running Windows and your business applications on each laptop, you run them on virtual machines (called session hosts) in Azure. Staff connect through the Windows App or a browser and see a normal Windows desktop, or just individual apps, while everything actually runs and stays in the data centre.

Two features make AVD distinctive:

  • Windows 11 Enterprise multi-session. Several users can share one virtual machine, which is unique to Azure and is the main reason AVD can be cost-effective at scale.
  • Microsoft manages the plumbing. The connection broker, gateway and web access are run by Microsoft as a service. You manage the session hosts and images.

Because Azure's Southeast Asia region is in Singapore, your desktops can run a few milliseconds from your office, which keeps the experience responsive.

When AVD is the right tool

SituationWhy AVD helps
Contractors and offshore teamsGive access to company apps without shipping laptops or letting data onto personal devices
Legacy or desktop-only appsRun old accounting, ERP or industry software centrally instead of installing it everywhere
Sensitive dataFiles never leave Azure; users see pixels, not copies. Useful for client confidentiality and PDPA risk
Seasonal or shift workersSpin desktops up for peak periods and pay only while they run
Heavy workloadsGive designers or analysts powerful (even GPU) machines without buying workstations
Business continuityIf the office or a laptop is unavailable, staff can work from any device

AVD is usually not worth it if your team already works happily in Microsoft 365 web and desktop apps on company laptops. Virtual desktops add a layer to manage; they need a reason to exist.

Licensing: probably already covered

According to Microsoft's Azure Virtual Desktop pricing page, users with Microsoft 365 E3, E5, A3, A5, F3, Business Premium, or Windows Enterprise and VDA per-user licences are entitled to access Windows 11 and Windows 10 desktops on AVD at no extra licensing cost. A separate per-user access price exists only for external users, such as customers using an app you deliver through AVD.

If your team is on Business Basic or Standard, you'd need to add an eligible licence. That's one more reason Business Premium often makes sense; see our Microsoft 365 plan comparison.

What drives the cost

With licensing covered, AVD cost is Azure consumption. The big levers:

  1. Users per machine. Multi-session pooling for task workers is far cheaper than one machine per user.
  2. Machine size. Right-size for the real workload, not the worst-case user.
  3. Running hours. A scaling plan that shuts hosts down at night and weekends can cut compute dramatically compared with running 24×7.
  4. Commitment discounts. Reserved instances or an Azure savings plan for your baseline hosts.
  5. Profile storage. FSLogix user profiles on Azure Files or Azure NetApp Files, sized to actual need.

We go deeper on all of these in Azure pricing explained and how to stop your Azure bill climbing.

The most common AVD cost mistake: building a proof of concept, liking it, and putting it into production with the test machines still running around the clock. Autoscaling should be part of day one, not a later optimisation project.

Azure Virtual Desktop vs Windows 365

Azure Virtual DesktopWindows 365
PricingPay-as-you-go Azure consumptionFixed monthly price per user
Users per machineOne or many (multi-session)One dedicated Cloud PC per user
Management effortHigher: images, scaling, profilesLow: managed like a laptop in Intune
FlexibilityHigh: GPUs, app streaming, custom networkingStandard configurations
Best forLarger or variable user counts, legacy apps, cost optimisation at scaleSmall teams, predictable budgets, simplicity

Security considerations

  • Protect access with conditional access and phishing-resistant MFA. Microsoft's move away from SMS codes applies here too; see our SMS MFA retirement guide.
  • Restrict clipboard, drive and printer redirection if the point is keeping data inside Azure.
  • Patch session host images monthly, and keep endpoint protection on the hosts.
  • Back up user profiles and any data stored on the hosts.

How to get started

  1. List the users and apps that would move, and why.
  2. Run a small pilot in the Southeast Asia region with real users and real apps.
  3. Measure the actual sizing and hours, then design scaling and reservations from data.
  4. Roll out in waves, with someone owning image updates and cost reviews every month.

If you'd rather not run the platform yourselves, our Azure managed services cover monitoring, patching, backup and cost optimisation for a flat monthly fee.

FAQ

Questions, answered

What is Azure Virtual Desktop?

Azure Virtual Desktop (AVD) is Microsoft's service for running Windows desktops and applications on virtual machines in Azure, which users access securely from almost any device. It supports Windows 11 Enterprise multi-session, which lets several users share one virtual machine to reduce cost.

Do we need extra licences for Azure Virtual Desktop?

Users licensed with Microsoft 365 Business Premium, E3, E5, F3 and certain Windows Enterprise or VDA licences are already entitled to access Windows desktops on Azure Virtual Desktop. You still pay for the Azure infrastructure underneath: virtual machines, storage and networking.

How much does Azure Virtual Desktop cost?

The main cost is Azure consumption: the virtual machines that run the desktops, the storage for user profiles and the network. Costs depend on how many users share each machine, how powerful the machines are, and how many hours a day they run. Autoscaling machines down outside working hours and using reserved instances are the two biggest savings levers.

What is the difference between Azure Virtual Desktop and Windows 365?

Windows 365 gives each user a dedicated Cloud PC for a fixed monthly price per user, with very little to manage. Azure Virtual Desktop is pay-as-you-go, supports multiple users per virtual machine and offers far more control, but needs more design and management. Windows 365 suits predictable, simple needs; AVD suits larger, variable or specialised workloads.

Can Azure Virtual Desktop be hosted in Singapore?

Yes. Azure's Southeast Asia region is located in Singapore, so session hosts and user data can run locally, which keeps latency low for Singapore-based staff and helps with data location requirements.

Wondering if virtual desktops fit your team?

Book a free consultation. We'll look at your users and applications and tell you whether Azure Virtual Desktop, Windows 365 or neither is the right fit.