Windows 365 is Microsoft’s latest innovation in cloud computing, combining the traditional PC experience with the flexibility of the cloud. Launched three years ago, Windows 365 isn’t another iteration of Windows—it brings the entire desktop environment to the cloud, making it accessible from virtually any device with internet access.
Microsoft offers virtual machines (VMs) that run on Azure servers to prepare for a new era of computing where hardware constraints aren’t considered a barrier.
The service provides users with the ability to access a full-fledged Windows experience, complete with applications and data, regardless of the physical device they are using. It blends cloud innovation with the familiar productivity of Windows, aimed at meeting the evolving needs of modern businesses.
Why Enterprises are eager to adopt Windows 365
Positioning as Desktop-as-a-Service
Windows 365, branded as “Cloud PC,” offers a full PC experience directly from the cloud. Satya Nadella, Microsoft’s CEO, has emphasized the transformative potential of Windows 365, which brings the entire operating system to the cloud.
Windows 365 removes the limitations of physical devices to give businesses a way to support their employees to work from anywhere, reinforcing continuity and productivity regardless of location.
This service is aimed at just about accessing Windows remotely; it’s there to provide organizations with a secure and adaptable platform that fits into the diverse and dynamic needs of the modern workforce.
Market Adoption and Financial Performance:
Windows 365 has gained traction among enterprise clients, including big names like FedEx, ING, and Carlsberg—pointing to the growing demand for flexible, cloud-based computing solutions in large organizations.
Financially, Windows 365, in tandem with Azure Virtual Desktop, has become a major revenue generator for Microsoft.
In 2023, these services collectively contributed over $1 billion in revenue. By mid-2023, one-third of Microsoft’s enterprise customers were using “cloud-delivered Windows,” highlighting the shift towards cloud-based computing in the corporate world.
What makes Windows 365 work well?
Virtualization Service
At its core, Windows 365 functions as a virtualization service that delivers a complete Windows desktop environment to users, regardless of the hardware they are using. This service is akin to a streaming platform, but instead of streaming movies or music, it streams the output of a Windows 10 or 11-powered PC.
Users interact with this virtual desktop through their local devices, which may be PCs, tablets, or even smartphones.
Virtualization approach is cost-effective and greatly reduces the need for maintaining and upgrading physical hardware, making it an attractive option for businesses looking to streamline their IT operations.
Thin Computing Model
Windows 365 revives the thin computing model, a concept that dates back to the early days of digital computing. In this model, the heavy lifting is done on distant servers, with the user’s device merely acting as an access point.
Data is transferred over the internet rather than through an organization’s internal network, making the system more accessible and scalable. This is particularly beneficial for organizations with distributed workforces, as it makes sure all users, regardless of their location, have access to the same computing power and resources.
How Much Will Windows 365 Really Cost?
Flat Monthly Rate Structure
Microsoft has adopted a straightforward pricing model for Windows 365, charging a flat monthly rate per user. This pricing structure is independent of the amount of Azure resources consumed, which simplifies budgeting for businesses.
Windows 365 offers 13 different virtual machine configurations to cater to different performance needs:
- Basic configuration: The most basic configuration, which includes two cores, 4GB of memory, and 64GB of storage, is priced at $28 per user per month.
- Advanced configuration: The most advanced configuration, offering 16 cores, 64GB of RAM, and 1TB of storage, costs $315 per user per month, which totals $3,780 annually.
For Windows 365 Business customers, the cost is slightly higher, with an additional $4 per user per month for each SKU compared to Enterprise customers.
There is, however, a $4 monthly discount per user when accessing Windows 365 via a device running Windows 10 Pro or Windows 11 Pro, offering some minor financial relief for organizations using Microsoft’s latest operating systems.
GPU Access (as of August 2024):
As of August 2024, Windows 365 has introduced GPU-enabled virtual machines, for businesses that require high levels of graphical processing power, such as those involved in 3D modeling or video rendering.
Three configuration options are available to meet various workload needs, though Microsoft has yet to disclose their specific pricing. This further broadens the scope of tasks that Windows 365 can handle, making it a more versatile choice for industries that demand intensive computing.
Why You’re Not Double-Billed with Windows 365
A common concern among users is whether they are being double-billed when using both Microsoft 365 and Windows 365. It’s important to clarify that these are distinct services with different purposes:
- Microsoft 365 license: A Microsoft 365 license provides the right to use software, including Windows 10 or 11, along with other productivity tools like Office.
- Windows 365 license: A Windows 365 license, on the other hand, covers the virtual PC that runs on Microsoft’s servers.
Essentially, Microsoft 365 grants software access, while Windows 365 covers access to the cloud-hosted PC environment. Businesses pay separately for the software they use and the virtual hardware they access, similar to how one would pay separately for physical hardware and the software installed on it.
Which Windows 365 Version is Right for Your Business?
Windows 365 Business vs. Windows 365 Enterprise:
Windows 365 offers two main versions tailored to different organizational needs.
- Windows 365 Business: Windows 365 Business is designed for smaller organizations with up to 300 employees—with a straightforward setup process, making it easier for businesses with limited IT resources to deploy and manage virtual desktops.
- Windows 365 Enterprise: Windows 365 Enterprise, on the other hand, is ideal for larger organizations. It has no user limit and offers more control over virtual PC management through tools like Microsoft Intune. It integrates well with other Microsoft enterprise applications, making it an ideal solution for organizations with complex IT infrastructures and higher security requirements.
Specialized Variations of Windows 365 Enterprise:
Windows 365 Enterprise also includes specialized variations for specific business needs:
- Windows 365 Frontline: Windows 365 Frontline targets organizations with shift and part-time workers, allowing up to three employees to share a single license, provided they access the virtual PC at different times.
- Windows 365 Government: Windows 365 Government is specifically designed for U.S. government agencies and contractors, offering improved security and compliance features, and is suitable for environments that handle sensitive information and require adherence to strict regulatory standards.
Device and connectivity requirements
Device Compatibility
Windows 365 is designed to be accessible from a broad selection of devices, provided they have an HTML5-compatible browser—so that users can access their Windows 365 environment from almost any modern device, including PCs, tablets, and smartphones.
For those using the Microsoft Remote Desktop app, the hardware requirements are minimal, with only 1GB of RAM needed to run the app. Accessing Microsoft Teams within Windows 365, however, requires a device with at least 4GB of RAM for smooth performance.
Internet Connection Requirements
Microsoft recommends a minimum bandwidth of 1.5 Mbps for light workloads, which is sufficient for basic tasks like word processing or browsing. For more demanding activities, such as video conferencing or 4K video streaming, a faster connection of up to 15 Mbps is recommended.
Adding to this, higher display resolutions, such as 3840 x 2160 pixels, require faster connections to keep the user experience smooth.
Final thoughts
Windows 365 has potentially kickstarted a major shift by moving the traditional desktop environment into the cloud, bringing with it a new level of flexibility and accessibility.
This evolution of desktop computing may shape how businesses rethink their IT strategies, offering a glimpse into the future of enterprise technology and the broader implications of cloud integration.
As the technology and its uses continues to evolve, understanding these changes could be key in preparing for—and capitalizing—on the next phase of technological development.
