What Is Azure Virtual Desktop? A Business Guide to AVD

Azure Virtual Desktop (AVD) is a cloud-based desktop and application virtualisation service from Microsoft, hosted on the Azure platform. It allows your employees to access a full Windows desktop environment — complete with all their applications, files, and settings — from virtually any device, anywhere with an internet connection.

For UK businesses looking to support remote and hybrid working, improve security, or reduce hardware costs, AVD offers an enterprise-grade solution without the complexity and expense of traditional on-premises virtual desktop infrastructure (VDI).

How Does Azure Virtual Desktop Work?

With AVD, Windows desktops and applications run on virtual machines in Microsoft's Azure data centres rather than on local hardware. Users connect to their virtual desktop via a client app or web browser, and the experience feels identical to working on a local PC.

Here is what happens behind the scenes:

• Virtual machines run in Azure — Microsoft manages the underlying infrastructure, including servers, networking, and storage
• Users connect via a client or browser — the Remote Desktop client is available for Windows, macOS, iOS, Android, and web browsers
• Only screen data is transmitted — the actual desktop, applications, and data remain securely in the cloud. Only pixels are sent to the user's device
• Profiles and settings follow the user — using FSLogix profile containers, each user gets a consistent experience regardless of which VM they connect to

Key Benefits of Azure Virtual Desktop for Businesses

Support Remote and Hybrid Working

AVD gives your team access to their full work environment from any device and any location. Whether employees are at home, in the office, at a client site, or travelling, they get the same desktop experience with all their applications and files.

Reduce Hardware Costs

Because processing happens in the cloud, users don't need powerful local hardware. Thin clients, older laptops, tablets, and even personal devices can access high-performance virtual desktops. This extends the life of existing hardware and reduces capital expenditure on new equipment.

Improve Security

Data never leaves the Azure cloud. Even if a device is lost or stolen, no company data is stored locally. Combined with conditional access policies, MFA, and Microsoft Defender for Endpoint, AVD provides a significantly more secure environment than traditional desktop computing.

Scale Up and Down Flexibly

Need to add 20 desktops for a seasonal project? Scale down when it is over? AVD allows you to add or remove virtual desktops quickly, paying only for what you use. This is particularly valuable for businesses with fluctuating staffing levels or project-based work.

Simplify IT Management

With AVD, your IT team or managed service provider manages a centralised set of virtual machine images rather than hundreds of individual physical PCs. Software updates, security patches, and application deployments happen once and apply to all users.

Multi-Session Windows 11

AVD is the only service that supports Windows 11 multi-session, allowing multiple users to share a single virtual machine while each having their own isolated session. This significantly reduces the cost per user compared to dedicated VMs.

Common Use Cases for AVD

Azure Virtual Desktop is used across a wide range of industries and scenarios:

• Remote and hybrid workforces — secure access to corporate desktops and applications from home or on the road
• BYOD (Bring Your Own Device) policies — employees use personal devices without company data being stored locally
• Highly regulated industries — legal, financial, and healthcare businesses benefit from centralised data security and compliance controls
• Seasonal and temporary staff — quickly provision and deprovision desktops for contractors, temps, and project workers
• Software development and testing — spin up development environments on demand without impacting production systems
• Call centres — standardised desktops for agents who may work across shifts and locations
• Mergers and acquisitions — provide immediate desktop access to newly acquired teams before full IT integration

AVD Pricing: How Much Does It Cost?

Azure Virtual Desktop pricing has two main components:

1. Azure infrastructure costs — you pay for the virtual machines, storage, and networking that run your desktops. Costs depend on the VM size, number of VMs, and hours they are running. Using multi-session Windows 11, auto-scaling, and reserved instances can significantly reduce costs.

2. Microsoft 365 or Windows licensing — users need an eligible licence. Microsoft 365 Business Premium, E3, or E5 licences include AVD entitlements at no extra cost. Alternatively, Windows E3/E5 per-user licences can be used.

Typical costs for a UK business range from £30–£80 per user per month, depending on performance requirements, storage needs, and whether VMs run 24/7 or only during business hours. Optimisation strategies like auto-scaling and right-sizing VMs can bring costs down significantly.

AVD vs Traditional VDI

Traditional Virtual Desktop Infrastructure requires on-premises servers, storage, networking, and specialist VDI software. It involves significant capital expenditure and ongoing maintenance. AVD eliminates this by moving everything to Azure:

• No servers to buy or maintain — Azure manages the infrastructure
• No VDI broker or gateway hardware — AVD handles connection brokering, load balancing, and gateway services natively
• Pay-as-you-go pricing — operational expenditure instead of capital expenditure
• Built-in integration with Microsoft 365 — native support for Teams, OneDrive, and Outlook optimisation
• Global reach — Azure's UK data centres (UK South and UK West) keep data within the UK for compliance

What You Need to Get Started

Deploying Azure Virtual Desktop requires careful planning. Here are the core requirements:

• Azure subscription — a pay-as-you-go or Enterprise Agreement Azure subscription
• Microsoft 365 or Windows licences — Business Premium, E3, or E5 for each AVD user
• Azure Active Directory — user identities managed through Azure AD (or hybrid with on-premises AD)
• Network connectivity — sufficient internet bandwidth for your users. Microsoft recommends at least 1.5 Mbps per user for standard office work
• VM image preparation — a configured Windows image with your applications, settings, and security policies

For businesses considering cloud infrastructure options, see our comparison of Azure vs AWS for UK businesses. For larger migration projects, read our guide to enterprise cloud migration strategies.

Get Help Deploying Azure Virtual Desktop

Connection Technologies works with specialist cloud and managed IT providers across the UK who design, deploy, and manage Azure Virtual Desktop environments. Whether you are exploring AVD for the first time or looking to optimise an existing deployment, we'll connect you with the right partner.