Microsoft 365 Virtual Desktop pricing

Windows Virtual Desktop [WVD] enables you to manage virtual desktop infrastructure [VDI] on the Azure cloud. Azure VDI pricing is impacted by three main factors—infrastructure, WVD Management Service, and licensing.

When deploying VDI on Azure, you can choose between licensing for Windows 7 and Windows 10 machines or licensing for Windows Server. You can also choose between personal desktops, pooled desktops, and applications only. Each option offers different billing plans for a wide range of applications and users.

In this post, we’ll explain the main factors influencing Azure VDI pricing and examine two examples. We will also show how Azure NetApp Files can provide virtual desktop environments with high availability and unprecedented cloud performance.

In this article, you will learn:

How Does Licensing Work for Windows Virtual Desktop on Azure?

To use Azure Windows Virtual Desktop [WVD] you need to have an eligible license or subscription per user you want to connect. Eligible licenses grant you access to both Windows 7 and Windows 10 machines.

The licenses that can grant you this access include:

  • Windows 10 Enterprise E5 or E3
  • Windows 10 Education A5 or A3
  • Windows 10 Virtual Desktop Access [VDA]
  • Microsoft 365 F3 or E3 or E5
  • Microsoft 365 A3 or A5 or Student Use Benefits
  • Microsoft 365 Business Premium [formerly called Microsoft 365 Business]

Depending on the license you have, you can also use any eligible products the license covers on your virtual desktops. Any Microsoft 365 licenses grant access to the entire Office365 suite. However, Windows licenses do not require additional licensing.

You can add these rights with a subscription to Office365, Office Professional Plus, or Office Standard with network use. You should also keep in mind that Windows Enterprise Upgrade licenses obtained through the Volume License program are not valid.

Windows Server
Another option is to access WVD based on Windows Server rather than Windows 7 or 10. If this is the OS you want to use, you need a license for Windows Server. For this license you can either:

  • Purchase the license as part of your Azure subscription. This is pay-as-you-go and more expensive.
  • Purchase Azure Hybrid Benefits for Windows Server Core. This includes Software Assurance and is a cheaper option.

When using Windows Server, you also need to license Remote Desktop Services. You can obtain this licensing through:

  • Windows Server RDS User client access licenses [CALs], that are covered with Software Assurance
  • The Cloud Solution Provider [CSP] program
  • Devices with existing RDS Device CALs

If you want to use Office365, licensing is the same as for using Windows 7 or 10 desktops.

Calculating Windows Virtual Desktop Pricing

When calculating the cost of operating Microsoft Windows Virtual Desktop, there are three main components to consider—the infrastructure, the WVD Management Service, and the licensing [as covered above].

Azure infrastructure to run desktops and apps
When implementing WVD there are two types of desktops you can choose from. There is also the option to deliver only specific applications or application sets.

  • Personal desktop—desktops are directly assigned to a single user. This is typically used when you need persistent desktops that users can customize.
  • Pooled desktop— users are assigned desktops from an available pool of machines. This is typically used when users only need a generic desktop that they are not customizing.
  • Applications only—select applications are delivered without full desktop accessibility. This is typically used when users only need limited access, such as with kiosks.

In all three implementations, WVD delivers a virtual machine with the required functionality. Every virtual machine delivered is hosted within your Azure subscription and uses compute, storage, and networking resources tied to your account.

The actual amount you are charged is based on your individual consumption costs. These include:

  • Which series of virtual machines you are using
  • Whether you are using Reserved Instances or On-Demand
  • The type of storage used by each machine [i.e. Standard HDD, Standard SSD, or Premium SSD]
  • The OS disk capacity of each machine [i.e. 128GB, 256GB, or 1TB]
  • The average number of users per virtual CPU [vCPU]
  • The average GB of RAM per user
  • How much data is transferred from Azure per month
  • Any additional services you are using [i.e. backup, virtual private networks [VPNs], replication, etc.]

The easiest way to find your exact costs is to use pricing tools like the Azure Calculator. With this tool, you can modify your implementation to fit a wide variety of scenarios to uncover which configurations are best for your needs and budget.

WVD Management Service
WVD Management Service is a platform offered by Azure that serves as a control plane for WVD. It provides the same functionality as RDS roles, used to manage the lifecycle of desktops and determine how users connect to desktops, in a single platform. You can manage this service through PowerShell, REST API, or the Azure admin portal.

This service makes management significantly easier than similar implementations with RDS. In the latter cases, IT teams were required to build domain-joined machines with individual control roles installed. This required more machines and infrastructure resources. WVD Management Service enables you to leave these responsibilities to Azure. The cost of this service is included with your license or subscription.

Examples of Azure VDI Costs

While you can use the previously mentioned calculator to assess your own potential VDI costs, it may help to understand Windows Virtual Desktop pricing for two common scenarios.

24/7 call center
This example is for a call center, such as that used for support and service delivery in an enterprise-scale environment. This scenario is designed to support 1,000 staff at a time. Staff work in three, eight-hour shifts and require low compute intensity resources.

To meet these requirements, 24/7 Reserved Instances are used. Each is connected to a distributed bandwidth pool of 30TB. You can see how pricing is calculated for this scenario below.

Knowledge workers
This example is for knowledge workers, for example, content creators or marketers. This scenario is designed to support 1,000 staff using primarily Office suite products and requiring high-intensity resources.

For this scenario, Azure recommends using 24/7 Reserved Instances so you do not have to devote resources to managing your virtual machines. Each instance is connected to a distributed bandwidth pool of 50TB. You can see how pricing is calculated for this scenario below.

Azure VDI Pricing with Azure NetApp Files

Azure NetApp Files is a Microsoft Azure file storage service built on NetApp technology, giving you the file capabilities in Azure even your core business applications require.

Get enterprise-grade data management and storage to Azure so you can manage your workloads and applications with ease, and move all of your file-based applications to the cloud.

Azure NetApp Files solves availability and performance challenges for enterprises that want to move mission-critical applications to the cloud, including workloads like HPC, SAP, Linux, Oracle and SQL Server workloads, Windows Virtual Desktop, and more.

In particular, Azure NetApp Files helps virtual desktop environments benefit from a comprehensive file share service that’s highly available and offers unprecedented cloud performance. This allows you to solve user experience challenges, with fast access to storage, and assure administrators that their environments will not go down with an unexpected loss of data.

Wondering what Azure VDI can do for your organization? Learn about how Azure VDI was able to help Ferguson enable a remote workforce in one weekend, create on-demand data strategy, and provide speed and capability for users in our Ferguson Success Story.

Please schedule time to speak with one of our specialists if you have specific questions or want to further discuss how Azure VDI can help your organization become more secure, have faster access to storage, get the most out of your data, and support a sustainable remote work force.

Microsoft announced its new Windows 365 service yesterday, but the company said it wouldn’t discuss pricing options until the Cloud PCs launch on August 2nd. Now, Microsoft has inadvertently revealed one pricing option, allowing businesses to use a virtual Windows PC in the cloud for $31 per user, per month.

The pricing option was revealed during a Microsoft Inspire session yesterday, as the company demonstrated how businesses can sign up to the service. For the $31 monthly subscription, Microsoft offers two CPUs, 4GB of RAM, and 128GB of storage. This is part of the Windows 365 Business option, designed for businesses with fewer than 300 overall users.

“This is pricing for just one SKU. Microsoft will have many more options, both in terms of configurations and price points, to share when the product becomes generally available on August 2nd,” a Microsoft spokesperson said in a statement to The Verge.

Microsoft’s Windows 365 pricing.

This isn’t the lowest-priced option, as Microsoft will also be offering a single CPU, just 2GB of RAM, and 64GB of storage. It’s not clear if the Enterprise versions of the same Cloud PC specifications are priced the same as the Business versions or if there’s a discount for larger organizations.

It’s difficult to compare this pricing directly to Microsoft’s Azure Virtual Desktop offerings or even competitors like Citrix and Amazon WorkSpaces, as there are often additional charges for compute power or bandwidth used. Microsoft has designed Windows 365 to be simple for businesses to access, and the pricing structure includes all license entitlements, usage, and compute.

Citrix offers virtual desktop access for around $30 per month, but the pricing varies depending on the length of contract and number of users. Amazon offers a virtual Windows PC with two CPUs, 4GB of memory, and 50GB of storage for $35 per month.

Pricing aside, Microsoft has also offered some more details on Windows 365, including the various PC configurations and supported features. Here’s what businesses will be able to pick from:

VM / OS disk size Example scenarios Recommended apps VM / OS disk size Example scenarios Recommended apps
1vCPU / 2GB / 64GB Frontline workers, Call centers, Education/training/CRM access. Office light [web-based], Microsoft Edge, OneDrive, lightweight line-of-business app [e.g. call center application – web-apps], Defender support.
2vCPU / 4GB / 64GB Mergers and acquisition, Short-term and seasonal, Customer Services, Bring-Your-Own-PC, Work from home Microsoft 365 Apps, Microsoft Teams [audio-only], Outlook, Excel, PowerPoint, OneDrive, Adobe Reader, Edge, Line-of-business app[s] , Defender support.
2vCPU / 4GB / 128GB Mergers and acquisition, Short-term and seasonal, Customer Services, Bring-Your-Own-PC, Work from home Microsoft 365 Apps, Microsoft Teams [audio-only], Outlook, Excel, PowerPoint, OneDrive, Adobe Reader, Edge, Line-of-business app[s] , Defender support.
2vCPU / 4GB / 256GB Mergers and acquisition, Short-term and seasonal, Customer Services, Bring-Your-Own-PC, Work from home Microsoft 365 Apps, Microsoft Teams [audio-only], Outlook, Excel, PowerPoint, OneDrive, Adobe Reader, Edge, Line-of-business app[s] , Defender support.
2vCPU / 8GB / 128GB Bring-Your-Own-PC, Work from home, Market Researchers, Government, consultants Microsoft 365 Apps, Microsoft Teams, Outlook, Excel, Access, PowerPoint, OneDrive, Adobe Reader, Edge, Line-of-business app[s] , Defender support.
2vCPU / 8GB / 256GB Bring-Your-Own-PC, Work from home, Market Researchers, Government, consultants Microsoft 365 Apps, Microsoft Teams, Outlook, Excel, Access, PowerPoint, OneDrive, Adobe Reader, Edge, Line-of-business app[s] , Defender support.
4vCPU / 16GB / 128GB Finance, Government, consultants, Healthcare services, Bring-Your-Own-PC, Work from home Microsoft 365 Apps, Microsoft Teams, Outlook, Excel, Access, PowerPoint, PowerBi, Dynamics 365, OneDrive, Adobe Reader, Edge, Line-of-business app[s], Defender support.
4vCPU / 16GB / 256GB Finance, Government, consultants, Healthcare services, Bring-Your-Own-PC, Work from home Microsoft 365 Apps, Microsoft Teams, Outlook, Excel, Access, PowerPoint, PowerBi, Dynamics 365, OneDrive, Adobe Reader, Edge, Line-of-business app[s], Defender support.
4vCPU / 16GB / 512GB Finance, Government, consultants, Healthcare services, Bring-Your-Own-PC, Work from home Microsoft 365 Apps, Microsoft Teams, Outlook, Excel, Access, PowerPoint, PowerBi, Dynamics 365, OneDrive, Adobe Reader, Edge, Line-of-business app[s], Defender support.
8vCPU / 32GB / 128GB Software developers, engineers, Content Creators, Design and Engineering workstations Microsoft 365 Apps, Microsoft Teams, Outlook, Access, OneDrive, Adobe Reader, Edge, PowerBi, Visual Studio Code, Line-of-business app[s], Defender support.
8vCPU / 32GB / 256GB Software developers, engineers, Content Creators, Design and Engineering workstations Microsoft 365 Apps, Microsoft Teams, Outlook, Access, OneDrive, Adobe Reader, Edge, PowerBi, Visual Studio Code, Line-of-business app[s], Defender support.
8vCPU / 32GB / 512GB Software developers, engineers, Content Creators, Design and Engineering workstations Microsoft 365 Apps, Microsoft Teams, Outlook, Access, OneDrive, Adobe Reader, Edge, PowerBi, Visual Studio Code, Line-of-business app[s], Defender support.

Each Cloud PC will also be able to access an impressive internet connection, with 10Gbps download speeds and 4Gbps upload speeds. Microsoft is also exploring the option to redirect video and other multimedia in virtual sessions. Naturally, the best way to experience Windows 365 will be through connecting from an existing Windows PC since features like multiple monitors [up to 16], USB, Teams AV redirection, and support for scanners will only be available if you’re connecting from Windows.

Microsoft is planning to launch Windows 365 fully on August 2nd, so we’ll know all pricing options in less than three weeks time.

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