Desktop-as-a-Service (DaaS): Virtual Desktops in the Cloud

Desktop-as-a-Service (DaaS) is a cloud computing model where a service provider hosts the backend infrastructure — servers, storage, networking, and virtualisation — needed to deliver virtual desktops to end users over the internet. Users connect to their virtual desktop from any device (a thin client, laptop, tablet, or even a smartphone) using a client application or web browser. The Windows desktop they interact with runs entirely in the cloud data centre, with only screen pixels, keyboard input, and mouse movements transmitted over the network.

DaaS differs from traditional VDI (Virtual Desktop Infrastructure) in that the infrastructure is managed by the cloud provider rather than the customer. With on-premises VDI, the organisation buys and maintains servers, hypervisors, storage, and connection brokers. With DaaS, most or all of that complexity is abstracted away — the provider handles capacity planning, patching, high availability, and scaling. For IT resellers, DaaS eliminates the large upfront capital expenditure of a VDI project while creating a recurring revenue stream through monthly per-user subscriptions and management services.

Azure Virtual Desktop is Microsoft's fully-featured DaaS platform running on Azure infrastructure. AVD supports both personal (one-to-one) and pooled (many-to-one) desktop models, as well as published RemoteApp programs. One of AVD's unique advantages is Windows 10/11 multi-session, an Azure-exclusive Windows SKU that allows multiple users to share a single virtual machine while each getting their own isolated desktop session. This significantly reduces compute costs compared to giving each user their own VM.

AVD is the most flexible but also the most complex DaaS option. The customer (or their reseller) manages the virtual machines, OS images, application installation, patching, scaling rules, and networking. Microsoft provides the connection broker, gateway, diagnostics, and web client as managed services, but the VMs themselves are standard Azure infrastructure that the customer is responsible for. Billing is consumption-based — you pay for the Azure compute, storage, and networking used, plus any Microsoft 365 or Windows licensing. There is no separate AVD licence fee if the users have eligible Microsoft 365 licences.

Windows 365 takes a fundamentally different approach to DaaS. Instead of managing virtual machines and scaling infrastructure, Windows 365 provides each user with a dedicated Cloud PC — a persistent virtual desktop with fixed specifications (CPU, RAM, storage) at a flat monthly per-user price. Think of it as a laptop in the cloud with a predictable bill. There are no consumption surprises, no VM management, and no scaling decisions. The Cloud PC is always on, always available, and always the same machine — the user's data, apps, and settings persist between sessions.

Windows 365 is available in two tiers: Business (up to 300 users, self-service provisioning) and Enterprise (integrated with Intune and Entra ID for larger, managed deployments). For Australian resellers, Windows 365 is the easiest DaaS to sell because the pricing is transparent and the management overhead is minimal. However, it comes at a premium compared to AVD for organisations that can efficiently share pooled resources. Windows 365 makes the most sense for customers who want simplicity, predictable costs, and do not need multi-session pooling.

Amazon WorkSpaces is AWS's DaaS offering, providing persistent virtual desktops running Windows or Amazon Linux. WorkSpaces offers two billing modes: monthly (always-on, flat fee) and hourly (a small monthly base plus per-hour charges for active use), giving flexibility for different usage patterns. Part-time workers, contractors, or users who only need a desktop a few hours per day can be significantly cheaper on hourly billing compared to a monthly Cloud PC.

For Australian customers, Amazon WorkSpaces has the advantage of running in the Sydney AWS region (ap-southeast-2), providing low-latency access and Australian data residency. WorkSpaces integrates with AWS Directory Service (managed Active Directory) or can connect to an existing on-premises AD via Direct Connect or VPN. While it lacks the deep Microsoft 365 integration of AVD and Windows 365, WorkSpaces is a strong choice for organisations already invested in the AWS ecosystem or those needing cross-platform virtual desktops (Windows and Linux).

Citrix DaaS (formerly Citrix Virtual Apps and Desktops Service) runs on Citrix Cloud and can host workloads on Azure, AWS, Google Cloud, or even on-premises infrastructure — or a combination of all four. This hybrid flexibility is Citrix's key differentiator. Citrix also provides the HDX protocol, which is widely regarded as the best remoting protocol for multimedia, video conferencing, and latency-sensitive applications. For organisations with complex requirements — multi-cloud, hybrid on-premises-to-cloud, or performance-critical workloads — Citrix remains the gold standard despite its higher cost and complexity.

Understanding the difference between personal (per-user) and pooled (per-session) desktops is critical for cost optimisation. A personal desktop is a dedicated VM assigned to a single user — their apps, data, and customisations persist between sessions. This is simple to manage but expensive, because the VM consumes resources whether the user is active or not. A pooled desktop is a shared VM (or pool of VMs) that users connect to on demand — when they log off, the session is destroyed and the VM is returned to the pool for the next user. User data is stored on a separate profile solution (like FSLogix) so it follows them to whichever VM they land on.

For most organisations, a combination of both models works best. Knowledge workers and power users get personal desktops with persistent customisations and installed applications. Task workers, call centre agents, and shift workers share pooled desktops that are cheaper per user because the infrastructure is shared across multiple shifts. Windows 10/11 multi-session in AVD takes this further by allowing multiple users to share a single VM operating system instance, which is the most cost-effective model for browser-based and lightweight application workloads.

DaaS is not limited to standard office productivity. Both Azure and AWS offer GPU-equipped virtual machines that can run demanding applications like AutoCAD, Revit, SolidWorks, video editing software, and 3D rendering tools. Azure's NV-series and NVads-series VMs provide NVIDIA GPU capacity for AVD, while Amazon WorkSpaces offers Graphics and GraphicsPro bundles with dedicated GPU resources. This enables engineers, architects, and designers to access powerful workstations from any device — including a thin client at a remote site or a laptop at home.

GPU-accelerated DaaS is particularly valuable for Australian organisations with distributed workforces. Rather than shipping expensive workstations to remote offices or home workers, a GPU-backed virtual desktop delivers the same performance from a data centre with enterprise-grade internet connectivity. The key consideration is latency — GPU workloads involving real-time 3D manipulation require low round-trip times. Using an Australian Azure or AWS region keeps latency manageable for users within Australia, but users in remote areas with poor internet may still experience lag.

Data residency is a significant concern for Australian organisations, particularly those in government, healthcare, finance, and legal. Many compliance frameworks — including the Australian Privacy Act, the Notifiable Data Breaches scheme, and various state government policies — require or strongly prefer that data remains within Australia. All major DaaS providers offer Australian hosting: Azure has regions in Sydney and Melbourne, AWS operates in Sydney, and Google Cloud has a Sydney region. When designing a DaaS solution, resellers must ensure that not only the virtual machines but also the associated storage, backups, and profile data reside in Australian data centres.