Replace your physical PCs — with the right kind of cloud PC.
Windows 365 or Azure Virtual Desktop? A straight answer for small businesses, from someone who has deployed both.
The short version
Windows 365 and Azure Virtual Desktop both replace a physical Windows PC with a Windows desktop that runs in Microsoft's cloud and streams to whatever device your team already has. Windows 365 gives each user their own Cloud PC for a flat monthly price per user, and Microsoft runs the infrastructure underneath it — which is why it is usually the right fit for a small business. Azure Virtual Desktop runs in your own Azure subscription, is billed on what you consume, and lets several users share one machine — which suits larger or multi-location teams with the Azure skills to operate it. For some businesses, the honest answer is to keep physical PCs for now.
Side by side
| Windows 365 | Azure Virtual Desktop | |
|---|---|---|
| How you pay | Flat monthly license per user | Azure usage (machines, storage, networking) plus an eligible license per user |
| Who runs the infrastructure | Microsoft | You, in your own Azure subscription |
| Desktops | One Cloud PC per user | Personal desktops, or several users sharing one machine |
| Ongoing care | Managed like your other devices (in Intune on the Enterprise edition) | Images, scaling and host pools need someone with Azure skills |
| Licensing prerequisites | None for Business; Windows E3, Intune and Entra ID P1 for Enterprise | An eligible license such as Microsoft 365 Business Premium, plus an Azure subscription |
| Usually fits | Small businesses where each person needs their own desktop | Larger or multi-location teams, shared machines, complex app delivery |
Which one fits you?
Five quick questions. You get Windows 365, Azure Virtual Desktop, or an honest "not yet" — with the reasons.
Choose all that apply.
Windows 365
A dedicated Cloud PC for each person, at a predictable price, with nothing to run in Azure. Set up at a fixed price, finished in weeks.
- Published fixed-price setup tiers
- Licensing, peripherals and connectivity sorted up front
- Documentation your team can run from
Azure Virtual Desktop
Shared or personal desktops in your own Azure subscription, built to stay fast and affordable as usage changes.
- Host pools, autoscale and image management
- FSLogix profiles and App Attach
- Quoted individually after a free consultation
Common questions about Windows 365 and Azure Virtual Desktop
What is the difference between Windows 365 and Azure Virtual Desktop?
Both deliver a Windows desktop from Microsoft's cloud, but they are built differently. Windows 365 is a subscription: each user gets a dedicated Cloud PC, Microsoft operates the infrastructure underneath it, and on Windows 365 Enterprise you manage Cloud PCs in Microsoft Intune much like physical laptops. Azure Virtual Desktop is infrastructure you run in your own Azure subscription: you size the virtual machines, choose whether users get their own desktop or share one, and keep the images, networking and scaling up to date. Windows 365 trades flexibility for simplicity; Azure Virtual Desktop trades simplicity for control.
How is Windows 365 priced compared with Azure Virtual Desktop?
The two have different cost shapes, not just different numbers. Windows 365 is a flat monthly license per user, set by the Cloud PC size you choose, and it costs the same whether the user works one hour or ten. Azure Virtual Desktop is billed on Azure consumption — compute, storage and networking — so the bill moves with usage, and shutting down or sharing machines can bring it down. Microsoft publishes and changes the list prices for both, so this page does not quote them; the Windows 365 cost and Azure Virtual Desktop cost pages explain what drives each bill and what implementation costs on top of it.
Is Windows 365 or Azure Virtual Desktop better for a small business?
For most small businesses under 250 users where each person needs their own dedicated desktop, Windows 365 is the default recommendation, because it costs less to manage over time. Azure Virtual Desktop is worth its extra complexity when you need many users sharing each machine, complex application delivery, or when you already run and govern infrastructure in Azure. That recommendation comes from delivery work, not product literature — see the hands-on delivery record.
Do I need Microsoft 365 or Intune licensing to use Windows 365 or Azure Virtual Desktop?
It depends on the edition. Windows 365 Business has no licensing prerequisites and is capped at 300 users per organization. Windows 365 Enterprise and Windows 365 Flex require each user to be licensed for Windows E3, Microsoft Intune and Microsoft Entra ID P1. Azure Virtual Desktop with Windows 10 or 11 session hosts requires an eligible license for each user — Microsoft 365 Business Premium, E3 and E5 are among them — plus an Azure subscription to run the machines; Windows Server session hosts are licensed separately through Remote Desktop Services. If you are still weighing licensing, see whether you need Business Premium.
Can several employees share one virtual desktop?
With Azure Virtual Desktop, yes: Windows Enterprise multi-session lets several users work on the same virtual machine at the same time, and how many fit depends on the machine's size and workload. That density is where most of its cost advantage for larger teams comes from. A standard Windows 365 Cloud PC belongs to one user. Windows 365 Flex, formerly Windows 365 Frontline, lets one license cover people who work at different times, but only one person can use a given Cloud PC at once. If most of your staff work the same hours and each need their own desktop, sharing is unlikely to save much.
When should a business keep its physical PCs instead?
When the work depends on things a cloud desktop does poorly: unreliable or slow internet at the places people work, heavy graphics or video workloads, specialized local hardware such as lab or manufacturing equipment, or a need to keep working offline. A Cloud PC also still needs a device to connect from, so it rarely removes hardware spending entirely. If any of these apply, the better first step is usually to manage the PCs you already have properly — which is what Intune Ready's core service does.
Does Intune Ready implement both Windows 365 and Azure Virtual Desktop?
Yes, as two separate services with separate scope and pricing. Windows 365 is the primary service, built around small-business rollouts. Azure Virtual Desktop is offered for larger or multi-location teams, drawing on enterprise deployment work and the Microsoft Azure Virtual Desktop certification — both described in the hands-on delivery record. Both are fixed-price setup engagements priced by the number of users. Setup includes full handoff documentation so your team can self-maintain going forward. Ongoing support is available if you'd prefer it, scoped and quoted for your specific situation.
Not sure which one fits?
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