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Diagram providing an overview of Windows 365.

Windows 365

This guide provides a comprehensive overview of Windows 365, covering its features, benefits, architecture, use cases, and optimization.

Amol Dalvi | May 5, 2025

Table of Contents

What is Windows 365?

Windows 365 handles provisioning, deployment, and management of your Cloud PCs, giving your team access to a personalized and secure desktops from any device, anywhere. This cloud-based solution empowers your employees to work flexibly and productively, with all their apps, settings, and data always available. 

Unlike traditional PCs that are tied to a specific device, your Windows 365 Cloud PC resides in the Microsoft cloud. This means you can access your personalized desktop from any Windows, Mac, iOS, or Android device with an internet connection, whether you're in the office, at home, or on the go.

What are the advantages of using Windows 365 for my business?

Windows 365 offers a compelling combination of features and benefits for both IT professionals and business decision-makers.

The benefits for IT professionals include:

A screenshot of the Windows 365 admin console showcasing its intuitive interface.

  • Simplified deployment & management: You can easily provision, deploy, and manage Cloud PCs with a centralized console and seamless integration with existing infrastructure.
  • Enhanced security: Protect your sensitive data with robust security features, including multi-factor authentication and integration with Microsoft Defender for Endpoint.
  • Flexibility and scalability: Easily scale your Cloud PC resources to meet changing needs, with a variety of configurations to support different workloads.
  • Integration with Microsoft 365: Seamlessly integrate it with your Microsoft 365 environment for a consistent user experience.

The benefits for business decision-makers include:

An image depicting employees collaborating remotely on their Windows 365 Cloud PCs.

  • Increased productivity: Empower your employees to work from anywhere with seamless access to personalized Cloud PCs, boosting productivity and collaboration.
  • Employee satisfaction: Provide a modern and flexible work environment that increases employee satisfaction and retention.
  • Reduced IT overhead: Simplify IT management and reduce overhead, freeing up your IT team for strategic initiatives.
  • Predictable costs: Benefit from a clear and predictable per-user, per-month pricing model for easier budgeting.
  • Business continuity: Ensure business continuity with always-available Cloud PCs accessible from anywhere, even during disruptions.

Know the TCO

This step-by-step wizard tool gives you the total cost of ownership for Windows 365 in your organization.

Know Your Cost

What’s the difference between Windows 365 Business and Windows 365 Enterprise?

Windows 365 offers two distinct editions tailored to different business needs and sizes. Choosing the right edition depends on your organization's size, IT capabilities, and specific requirements. Consider factors like the number of users, the complexity of your IT environment, and the level of customization you need when making your decision.

Windows 365 Business

  • Designed for: Small to medium-sized businesses (SMBs) with up to 300 users.
  • Simplified management: Streamlined deployment and management through a user-friendly interface, ideal for businesses with limited IT resources.
  • Fixed configurations: Offers pre-configured Cloud PC options with set specifications, simplifying the selection process.
  • Monthly subscription: Predictable per-user, per-month pricing for easier budgeting.

Windows 365 Enterprise

  • Designed for: Larger enterprises with more complex needs and a larger user base.
  • Advanced features: Provides greater flexibility and customization options, including granular control over Cloud PC configurations, security policies, and integration with existing infrastructure.
  • Scalability: Easily scales to support a large number of users and diverse workloads.
  • Integration with Azure AD and Intune: Leverages Azure Active Directory and Microsoft Intune for advanced identity and access management, security, and compliance.

Here’s a business vs enterprise comparison table:

Feature Business Enterprise
Target users SMBs (up to 300 users) Larger enterprises
Management Simplified, user-friendly Advanced, customizable
Configurations Pre-configured options Flexible, customizable
Scalability Limited Highly scalable
Integration Basic Azure AD integration Advanced Azure AD and Intune integration
Pricing Fixed per-user, per-month Flexible, based on configuration

Know the TCO

This step-by-step wizard tool gives you the total cost of ownership for Windows 365 in your organization.

Know Your Cost

What are the key components of a Windows 365 environment?

Now let’s walk through a simplified overview of the core components and how they interact.

Diagram showing an overview of the core components and how they interact.

Let’s understand the architectural diagram above, piece by piece…

  • Windows 365 service: The core service that manages and delivers Cloud PCs. It handles provisioning, deployment, and ongoing management of your environment.

  • Microsoft Hosted Network (MHN): A secure network within Microsoft's Azure cloud that hosts your Cloud PCs. It provides connectivity, security, and management services for your environment.

  • Azure Virtual Desktop service: While distinct from Windows 365, this service provides the underlying infrastructure for certain components, such as the web client and gateway.

  • Cloud PCs: Virtual machines running Windows 10 or 11, hosted in the MHN. They provide a personalized desktop experience accessible from any device.

  • Clients: The devices used to access these virtual machines, including Windows, macOS, iOS, Android, and web browsers.

  • Azure Active Directory (Azure AD): Microsoft's cloud-based identity and access management service. It handles user authentication and authorization for Windows 365.

  • Microsoft Intune: A cloud-based endpoint management service that can be used to manage and secure Cloud PCs, including device configuration, data protection, and app management.

And here’s how it all works together…

  1. Provisioning: You provision Cloud PCs through the Windows 365 portal, selecting the desired configuration and assigning licenses to users.

  2. Deployment: The Windows 365 service creates the virtual machines in the MHN, configures them according to your specifications, and joins them to your Azure AD domain.

  3. Access: Users access their Cloud PCs from any device using a supported client, authenticating with their Azure AD credentials.

  4. Management: You manage your virtual machine environment through the Windows 365 portal, including tasks like assigning licenses, adjusting configurations, and monitoring performance.

  5. Security: Azure AD and Intune provide security features like multi-factor authentication, conditional access, and device compliance policies to protect your virtual machines and data.

How are businesses using Windows 365?

A photo of a person working on a laptop at a coffee shop.

Windows 365's flexibility and versatility make it a valuable solution for a wide range of industries and work scenarios. Here are some examples of how you can leverage it to enhance productivity and efficiency:

  • Remote work: Provide remote employees with secure and personalized virtual machines that they can access from anywhere, ensuring a consistent and productive work experience regardless of location.
  • Hybrid work: Enable a seamless transition between office and remote work with Cloud PCs that provide a consistent desktop experience across locations and devices. Employees can easily switch between their office PC and their Cloud PC without losing access to their applications and data.
  • Frontline workers: Equip frontline workers with Cloud PCs accessible on mobile devices such as a laptop, iPhone, iPad or Android tablet, enabling them to access critical information and applications in the field. This can improve efficiency, communication, and customer service.
  • Seasonal workers: Quickly onboard and offboard seasonal workers with Cloud PCs that can be easily provisioned and de-provisioned as needed. This eliminates the need to purchase and manage physical hardware for temporary employees.
  • Specialized workloads: Provide developers, designers, and other specialized workers with high-performance Cloud PCs tailored to their specific needs. This ensures they have the computing power and resources required for demanding tasks.
  • Mergers and acquisitions: Simplify IT integration during mergers and acquisitions by quickly providing employees of the acquired company with access to virtual machines. This ensures a smooth transition and minimizes disruption to productivity.
  • Training and education: Create standardized and secure learning environments with virtual machines that can be easily deployed and managed for students or trainees.

How does Windows 365 compare to other cloud PC solutions?

Windows 365 offers a unique approach to desktop virtualization, but it's important to understand how it compares to other solutions in the market. This section examines the key differences between it and two primary alternatives: Azure Virtual Desktop (AVD) and traditional on-premises VDI.

Windows 365 vs Azure Virtual Desktop (AVD)

While both provide cloud-based virtual desktops, they cater to different needs and use cases.

Feature Windows 365 Azure Virtual Desktop
Pricing Fixed per-user, per-month pricing. Consumption-based pricing (pay-as-you-go).
Management Simplified management with streamlined deployment and pre-configured options. More complex management, requiring greater technical expertise.
Customization Limited customization of Cloud PC configurations. Highly customizable, allowing for granular control over VM sizes, configurations, and resource allocation.
Ideal use cases Consistent, predictable workloads with a focus on ease of use and fixed costs. Dynamic workloads with fluctuating demands and a need for cost optimization and resource flexibility.

Windows 365 vs Traditional VDI

A diagram contrasting the architecture of Windows 365 with traditional VDI, highlighting the cloud-based nature of Windows 365 and the on-premises infrastructure required for traditional VDI.

Compared to traditional on-premises Virtual Desktop Infrastructure (VDI) solutions, Windows 365 offers several advantages:

  • Reduced costs: Eliminates the need for upfront investments in hardware and infrastructure.
  • Increased scalability: Easily scales resources up or down to meet changing needs.
  • Simplified management: Reduces the complexity and overhead of managing on-premises infrastructure.
  • Enhanced security: Leverages the security features of the Microsoft cloud.
  • Improved accessibility: Provides access to Cloud PCs from anywhere with an internet connection.

How can I optimize my Windows 365 experience?

While Windows 365 provides a powerful platform for Cloud PCs, managing and optimizing your deployment can still present challenges. Nerdio offers a suite of solutions designed to simplify and enhance your experience.

A screenshot of Nerdio Manager for Windows 365, showing its dashboard and management features, such as automated deployment, cost optimization tools, and security settings.

Here's how Nerdio can help:

  • Automated deployment: Streamline the deployment and configuration of Cloud PCs, reducing the time and effort required to get started.

  • Centralized management: Manage all your virtual machines from a single pane of glass, with intuitive tools for provisioning, updating, and monitoring.

  • Cost optimization: Optimize your costs by automatically scaling resources, right-sizing VMs, and leveraging reserved instances.

  • Enhanced security: Strengthen your security posture with advanced features like multi-factor authentication, role-based access control, and proactive threat detection.

  • User management: Simplify user management with automated onboarding, offboarding, and user profile management.

  • Performance optimization: Optimize the performance of your Cloud PCs with tools for monitoring, troubleshooting, and resource allocation.

  • Integration with Microsoft Copilot: Nerdio also integrates with Microsoft Copilot, an AI-powered assistant, to further streamline management tasks and provide intelligent insights for optimization. By leveraging Copilot, Nerdio can help you automate complex tasks, proactively identify potential issues, and make data-driven decisions to optimize your environment.

With Nerdio, you can:

  • Reduce IT overhead: Free up your IT team from tedious management tasks.

  • Maximize cost efficiency: Optimize your spending and avoid unnecessary costs.

  • Improve security: Enhance the security of your environment.

  • Increase user satisfaction: Provide a seamless and productive experience for your employees.

Nerdio's solutions help you unlock the full potential of Windows 365 while simplifying management, optimizing costs, and enhancing security. 

Frequently Asked Questions

Learn more about Windows 365

About the author

Amol Dalvi

VP, Product

Software product executive and Head of Product at Nerdio, with 15+ years leading engineering teams and 9+ years growing a successful software startup to 20+ employees. A 3x startup founder and angel investor, with deep expertise in Microsoft full stack development, cloud, and SaaS. Patent holder, Certified Scrum Master, and agile product leader.

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