Remote work and hybrid work have changed how businesses think about providing employees with access to applications and data. Azure Virtual Desktop (AVD) is one solution that has grown in popularity among Australian businesses looking for a secure, centrally managed way to deliver desktops and applications to staff regardless of where they are working.

This guide explains what Azure Virtual Desktop is, how it works, and whether it might be a good fit for your organisation.

What Is Azure Virtual Desktop?

Azure Virtual Desktop is a Microsoft cloud service that lets you run Windows desktops and applications in Microsoft’s Azure cloud and access them from almost any device. Instead of running applications locally on your computer, the computing happens in Azure’s data centres. Your device simply displays what is happening in the cloud and sends your keyboard and mouse inputs back.

From a user perspective, working in AVD looks and feels like using a Windows PC. You have a full Windows desktop, access to applications like Microsoft 365, and access to your files. The difference is that this environment lives in Azure, not on your local machine.

How Does Azure Virtual Desktop Work?

Your organisation’s IT team or provider sets up virtual machines (VMs) in Azure that run Windows. These VMs are configured with the applications your team needs. Users connect to their virtual desktop using the Remote Desktop client, a web browser, or the Windows App.

Connections are encrypted and authenticated through Microsoft Entra ID (Azure Active Directory), which means the same security controls and conditional access policies that protect your Microsoft 365 environment also protect your virtual desktops.

What Problems Does AVD Solve?

Secure Remote Access

AVD provides a secure way for staff to access their full work environment from home, from client sites, or while travelling, without needing to VPN into a corporate network or transfer sensitive data to a personal device. All data stays in Azure – nothing is stored locally on the device being used to connect.

Bring Your Own Device

With AVD, staff can use their own devices (Windows, Mac, iPad, Android) to access a fully managed Windows environment. This reduces the cost and complexity of managing a fleet of company-issued devices while still maintaining security and control over the work environment.

Applications That Cannot Run in the Cloud

Some legacy business applications were designed to run on Windows and cannot be easily moved to a web-based or cloud-native model. AVD allows these applications to run in the cloud while remaining accessible from anywhere, extending their useful life without requiring users to be in a specific physical location.

Centralised Management and Patching

When your desktops run in Azure, your IT team manages them centrally. Patching, software updates, and configuration changes are applied once to the virtual machine image and rolled out to all users, rather than requiring updates on each individual physical device. This reduces IT overhead significantly at scale.

AVD Licensing and Cost

Azure Virtual Desktop itself does not have a separate product licence fee – the right to use AVD is included with Microsoft 365 E3, E5, Business Premium, and certain Windows licences. However, you do pay for the Azure infrastructure you use, including virtual machine compute time, storage, and bandwidth.

The total cost depends on the number of users, how many hours per day they access their virtual desktops, the size of the virtual machines required, and whether users need persistent or shared (pooled) desktops.

For organisations where staff do not all work standard business hours simultaneously, pooled desktop environments (where multiple users share a pool of VMs) can be significantly more cost-effective than assigning a dedicated VM to each user.

Persistent vs. Pooled Desktops

There are two main models for delivering virtual desktops in AVD:

Persistent (personal) desktops: Each user has their own dedicated VM that persists between sessions. It behaves like a personal PC in the cloud – settings, saved files, and customisations are preserved. This is better for users who need a consistent, personalised environment.

Pooled (non-persistent) desktops: Users connect to any available VM from a shared pool. Each session typically starts from a clean, standardised image. This is more cost-efficient for task workers who use a standard set of applications. Files are typically stored in OneDrive or SharePoint rather than locally on the VM.

Is AVD Right for Your Business?

AVD is worth evaluating if your business has one or more of the following:

• A significant proportion of remote or hybrid workers
• Staff who need access to desktop applications from multiple locations or devices
• Legacy applications that need to be maintained but accessed remotely
• Compliance or security requirements that make local data storage on devices problematic
• A desire to reduce the cost and complexity of managing physical desktop hardware

AVD may not be the right fit if your team works primarily on-site with standard modern hardware, your applications work well in a browser or Microsoft 365, and the added complexity of cloud infrastructure does not address a specific business problem.

For many businesses, a hybrid approach works well: standard devices and Microsoft 365 for most staff, with AVD for specific roles or use cases that require it.

For more information on Azure Virtual Desktop and cloud infrastructure options for Australian businesses, visit the Otto IT Microsoft 365 and cloud services page. To discuss whether AVD makes sense for your situation, contact the Otto IT team.

Summary

Azure Virtual Desktop delivers Windows desktops and applications from the Azure cloud to almost any device, providing secure remote access, centralised management, and flexibility for hybrid and remote workforces. It is a strong fit for businesses with significant remote access needs, legacy applications, or strict data security requirements, and is worth evaluating as part of a broader cloud strategy.

If your business needs help getting the most out of Microsoft 365 or keeping your IT running smoothly, talk to the Otto IT team.

Frequently Asked Questions

How long does it take to implement Azure Virtual Desktop for a small business?

Implementation timelines vary based on your environment size and complexity. Most small to medium-sized Australian businesses can expect an initial rollout to take anywhere from a few days to several weeks, depending on the scope. Partnering with an experienced managed IT provider helps streamline the process and reduces disruption to day-to-day operations.

What are the ongoing costs associated with Azure Virtual Desktop?

Costs depend on your organisation’s size, existing infrastructure, and the level of support you require. Many modern solutions use subscription-based pricing, which makes ongoing costs predictable and easier to budget. We recommend requesting a scoped proposal tailored to your specific environment to get an accurate figure.

Do I need an in-house IT team to manage Azure Virtual Desktop?

Not necessarily. Many organisations outsource this to a managed IT services provider, which gives you access to specialist expertise without the overhead of a full-time hire. A good provider will handle setup, monitoring, updates, and support on your behalf, freeing your team to focus on core business activities.

Is Azure relevant for non-technical industries like law, accounting, or healthcare?

Absolutely. Non-technical industries often have the most to gain, as they handle sensitive client data and face strict compliance and regulatory requirements. Solutions in this space are designed to be accessible and user-friendly, so your staff do not need a technical background to benefit from them.

How do I know if my current approach is adequate?

The best starting point is a technology assessment or independent audit conducted by a qualified IT professional. This identifies gaps in your current setup and produces a prioritised list of improvements. Otto IT offers complimentary assessments for businesses looking to understand their technology posture and where to focus next.