AVD — Azure Virtual Desktop
Category: cloud
Last reviewed by the MSLicenseHub Licensing Desk.
Azure Virtual Desktop (AVD), formerly known as Windows Virtual Desktop, is a cloud-based desktop and application virtualization service that runs exclusively on Microsoft Azure. It allows organizations to deliver a virtualized Windows experience—including desktops and individual applications—to users on any device, while centralizing management and data security within the Azure environment.
Technical and Functional Capabilities
AVD is unique in the market because it offers Windows 10 and Windows 11 "Multi-session" capabilities. In traditional Virtual Desktop Infrastructure (VDI), each user typically requires a dedicated Virtual Machine (VM) running a client OS, or multiple users must share a Server OS (Remote Desktop Services). AVD Multi-session allows multiple users to share a single Windows 10 or 11 VM simultaneously, significantly reducing compute costs while maintaining the user experience and application compatibility of a client operating system.
- Full Desktop Virtualization: Users access a complete Windows environment.
- RemoteApp: Only specific applications are virtualized and appear to the user as if running locally.
- Persistent and Non-Persistent: Supports both "personal" (assigned to one user) and "pooled" (shared) host pools.
- FSLogix Integration: Included technology that profiles user data to ensure fast sign-in times and seamless roaming of Outlook and OneDrive data.
Licensing Requirements and Agreements
Licensing for AVD is bifurcated between the "Access Rights" (the right to use the Windows software) and the "Infrastructure Costs" (the cost of the Azure resources).
| Use Case | Required License |
|---|---|
| Windows 10/11 (Client) | Microsoft 365 E3, E5, F3, A3, A5, Business Premium, or Windows 10/11 Enterprise E3/E5. |
| Windows Server | RDS CALs with active Software Assurance (SA) or RDS User Subscription Licenses (USL). |
| External Users | Per-user monthly "Access Pricing" (for scenarios where users are not your employees). |
On a formal quote or Microsoft Customer Agreement (MCA), AVD typically appears as two distinct components: the underlying Azure consumption (Compute, Storage, Networking) charged via an Azure Subscription, and the prerequisite Microsoft 365 or Windows Enterprise licenses found in the "Online Services" section.
Common Misunderstandings
- The "Free" Myth: While the AVD management plane (the broker and gateway) is included at no extra cost with qualifying licenses, the Azure VM compute and storage are always billable.
- OEM Licensing: Windows licenses provided by hardware manufacturers (OEM) cannot be used to license AVD. AVD requires VDA (Virtual Desktop Access) rights, which are only available through Volume Licensing or retail subscriptions.
- Office 365 Compatibility: Using Microsoft 365 Apps for Enterprise on AVD requires a license that specifically includes shared computer activation (SCA) rights, such as Microsoft 365 E3 or higher.
Related Terms
- Windows 365 (Cloud PC): A simplified, fixed-price version of AVD with less customization but easier management.
- Remote Desktop Services (RDS): The traditional on-premises precursor to AVD.
- Azure Stack HCI: An on-premises hybrid cloud solution that allows running AVD workloads locally while still managed via the Azure portal.
What this means when buying
When budgeting for AVD, do not look for a single "AVD SKU." Instead, ensure your workforce is already covered by a qualifying Microsoft 365 subscription (like Business Premium or E3). Then, use the Azure Pricing Calculator to estimate the monthly consumption cost for the VMs. Practical cost-saving involves using "Reserved Instances" for persistent desktops or "Autoscale" to shut down pooled VMs during non-working hours, as you only pay for the infrastructure while it is powered on.
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