This article is based on reporting originally published by CRN in October 2019, covering industry reaction to the general availability of Microsoft Windows Virtual Desktop.
A Turning Point for Windows Delivery
When Microsoft made Windows Virtual Desktop (WVD) generally available on September 30, 2019, it marked more than a product launch. Industry executives argued it represented the most significant shift in end-user computing since the arrival of Windows 95 — a deliberate move to migrate the Windows operating system itself into Azure, following the same playbook Microsoft used to move Office into the cloud with Office 365.
“This is a historic moment in the history of computing,” said Jed Ayres, CEO of IGEL North America. “Over the last 34 years Microsoft has come out with 16 different versions of their operating system. That is over. For the first time ever, Microsoft is leaning into delivering Microsoft Windows from Azure with WVD. The same play Microsoft ran over the last five years on Office they are now running on Windows.”
What Windows Virtual Desktop Actually Delivers
WVD is a cloud-based desktop and application virtualization service built natively on Azure. Several capabilities distinguish it from earlier virtual desktop infrastructure (VDI) approaches:
- Windows 10 Multi-Session: Allows multiple concurrent users to share a single Azure virtual machine running Windows 10, a capability previously unavailable outside of Windows Server. This significantly reduces per-user infrastructure costs.
- Integrated Office 365 optimization: Teams, Outlook, and other Microsoft 365 workloads are specifically optimized to run inside WVD sessions.
- Centralized security patching: Security updates are applied in the cloud rather than distributed across thousands of individual endpoints, reducing the attack surface and patch management overhead.
- Windows 7 extended security updates at no extra cost: Customers running WVD could access free extended security updates for Windows 7 beyond its January 14, 2020 end-of-support date, a significant incentive for organizations still on the aging OS.
Licensing: Who Is Already Eligible
At general availability, Microsoft structured WVD eligibility to encompass a large portion of its existing enterprise customer base. Customers with the following licenses were eligible to access Windows 10 Single and Multi-Session, as well as Windows 7 under WVD:
- Microsoft 365 Business
- Microsoft 365 F1
- Microsoft 365 E3 / E5
- Microsoft 365 A3 / A5 (Student Use Benefits)
- Windows 10 Enterprise E3 / E5
- Windows 10 VDA per user
- Windows 10 Education A3 / A5
Customers with an RDS Client Access License (CAL) with active Software Assurance were also eligible to run server workloads through WVD.
The Economic Case: Microsoft’s Claimed Savings Figures
Microsoft and its partners cited substantial cost reduction figures to support the WVD business case at launch. These included:
- Up to 70% savings in infrastructure costs compared to traditional on-premises VDI
- Up to 60% reduction in licensing costs
- Up to 60% reduction in labor costs associated with desktop management
- Up to 80% reduction in end-user infrastructure costs specifically attributable to the Multi-Session capability
Ayres drew a direct comparison to VMware’s introduction of server virtualization, which fundamentally altered data center economics. “That’s the kind of economic disruption that was last seen in the industry when VMware introduced server virtualization,” he said.
Why MSPs Face Disruption
The WVD model challenges the core revenue streams many managed service providers have built over decades: selling, deploying, patching, and managing physical Windows endpoints. If Microsoft absorbs patching, updates, and security management into Azure, the traditional break-fix and lifecycle management models lose their economic justification.
“Anyone that has a business around patching, managing and securing Windows is going to be under siege as Microsoft extracts as much of that up into Azure as they possibly can,” said Ayres.
CloudJumper President JD Helms offered an equally stark framing: “If your business is built around patching and supporting end users, you better get a new business model because that is going away in the next three to five years.” Helms compared MSPs who ignore the shift to Blockbuster Video failing to respond to Netflix — a cautionary tale about complacency in the face of a delivery model change.
CloudJumper, which provides orchestration and management software designed to simplify WVD deployment, was actively recruiting channel talent and building MSP programs at the time of publication to help partners navigate the transition.
The Windows 7 Migration Pressure
One concrete near-term driver for WVD adoption was the Windows 7 end-of-support deadline. With mainstream support ending January 14, 2020, an estimated 70 million customers were still running Windows 7 at the time. WVD offered a migration path that did not require immediate hardware replacement: organizations could run virtualized Windows 7 workloads in Azure while qualifying for free extended security updates under WVD licensing terms.
“Microsoft has customers trying to get off Windows 7 boxed into a corner,” said Ayres. “You can run Windows 7 in Azure with WVD.”
The Role of Linux Endpoints
An underappreciated dimension of the WVD model is what it means for client endpoints. If Windows runs in Azure, the device on the user’s desk or lap no longer needs to run Windows itself. Thin clients and Linux-based endpoints become viable — and potentially preferable — options.
IGEL, whose lightweight Linux-based endpoint OS is designed to connect to cloud workspaces, positioned itself as a direct beneficiary of this shift. “Linux is going to be a very healthy choice on the edge because it is inexpensive, very secure and much easier to manage,” said Ayres. IGEL was actively enabling WVD connectivity from its Linux distribution at the time of this reporting.
How Solution Providers Were Responding
Not all solution providers were caught flat-footed. Entisys360, ranked 132nd on the CRN Solution Provider 500 at the time and recognized as a five-time Citrix Partner of the Year, was actively integrating WVD into client conversations.
“We are making WVD part of every conversation that we have,” said Al Solorzano, Vice President of End-User Computing for Entisys360. “It would be foolish for any partner or customer to ignore WVD. This is the first time customers are going to see the benefits of public cloud like built-in security and scale in their virtual desktop infrastructure.”
Entisys360’s phased approach included proof-of-concept engagements for WVD alongside Citrix Cloud offerings, with a planned progression toward a full managed services practice built around WVD.
What MSPs Should Consider
Regardless of how rapidly WVD adoption has unfolded since this reporting, the underlying strategic questions it raised remain relevant for any MSP or solution provider evaluating their desktop practice:
- Audit your revenue dependency on physical Windows management. Understand how much of your recurring revenue comes from activities that cloud-hosted desktop models could reduce or eliminate.
- Evaluate your Azure competency. Deploying, optimizing, and managing WVD environments requires Azure expertise that many traditional desktop MSPs have not yet built.
- Assess the Windows 10 Multi-Session opportunity. For customers with large numbers of task workers, the per-user cost reduction from Multi-Session can be a compelling sales conversation.
- Consider endpoint strategy. WVD shifts value from the endpoint OS to the session broker and Azure infrastructure. Thin client and Linux endpoint solutions may become a stronger part of your portfolio.
- Build managed services around the new model. The opportunity is not gone — it has shifted toward Azure governance, WVD session management, identity management, and security monitoring rather than physical device lifecycle management.
Context: WVD Is Now Azure Virtual Desktop
Note that Microsoft subsequently rebranded Windows Virtual Desktop as Azure Virtual Desktop (AVD) in 2021. The underlying service and its capabilities have continued to evolve since the events described in this article. MSPs and solution providers evaluating this space should refer to current Microsoft Azure Virtual Desktop documentation for up-to-date licensing, pricing, and feature information.
Original reporting by CRN (crn.com), October 2019.