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Diagram providing an overview of a Windows 365 Subscription.

Windows 365 subscription

This guide details how Windows 365 subscriptions work, the different types, setup, and key considerations for businesses and IT professionals.

Amol Dalvi | May 5, 2025

Table of Contents

What is a Windows 365 Subscription?

Let’s start with the basics. A Windows 365 subscription provides a cloud-based version of Windows, known as a Cloud PC. It allows users to stream their personalized desktop, apps, and settings to any device. This enables secure access to a consistent experience from anywhere. 

For your business, Windows 365 simplifies IT management, enhances security, and supports flexible work arrangements. It eliminates the need for traditional on-premises desktops, offering a scalable and cost-effective solution for delivering Windows to your employees.

How Does Windows 365 Work?

Now let’s dig into the underlying mechanisms of the service. Understanding these core concepts will help you grasp how Cloud PCs deliver a Windows experience from the cloud to any device.

What’s a Cloud PC?

A Cloud PC is your personalized Windows desktop delivered virtually from the cloud. Think of it as your own PC that you can access from any internet-connected device.

  • It's a virtual machine hosted in Microsoft's cloud data centers.
  • It provides a full Windows operating system experience.
  • Users can access their apps, data, and settings from anywhere.

How is Windows 365 architecture structured?

Windows 365 architecture relies on cloud storage infrastructure to stream the Windows experience. It's a combination of different technologies working together.

  • Cloud PCs are hosted on Microsoft Azure infrastructure.
  • The Windows operating system runs within a virtual machine.
  • Users connect to their Cloud PCs via a streaming protocol.
  • Microsoft manages the underlying infrastructure, ensuring availability and security.

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 different types of Windows 365 subscriptions?

Windows 365 offers a range of subscription options designed to meet diverse organizational needs. Understanding these options will help you choose the right Cloud PC configuration for your organization.

This table lays out the four subscription options available:

Product Description Key Features
Business Designed for smaller businesses. Simplified management. Suitable for organizations with up to 300 users. Simplified management, Up to 300 users
Enterprise Designed for larger organizations. Offers advanced management and integration capabilities. Ideal for enterprises requiring greater control and scalability. Advanced management, Scalability, Integration
Government Designed for US government agencies and qualified contractors. Meets specific government security and compliance requirements. Provides enhanced security and compliance features. Government compliance, Enhanced security
Frontline Designed for frontline workers (e.g., retail, healthcare, customer service). Optimized for shared devices and shift work. Cost-effective solution for organizations with many frontline employees. Shared device optimization, Cost-effective

What are the key differences between Windows 365 Business and Enterprise?

The primary differences lie in management capabilities, scalability, integration options, and specific features tailored to the target audience.

Feature Business Enterprise
Management Simplified management through a web-based portal. Manage Cloud PCs in fully integrated Microsoft Intune.
Scalability Designed for smaller deployments, up to 300 users. Highly scalable, suitable for large organizations, unlimited number of users.
Integration No other Microsoft licenses are required. Limited integration with other Microsoft services. Deep integration with Azure Active Directory, Microsoft Endpoint Manager, and other enterprise tools.

What are the Windows 365 Enterprise GPU options?

GPUs (Graphics Processing Units) are specialized electronic circuits designed to accelerate the creation of images and videos. For organizations needing robust graphical capabilities within their Cloud PCs, Windows 365 Enterprise offers specialized GPU configurations. These options cater to varying levels of graphical intensity, ensuring optimal performance for diverse workloads.

What are the key features of Windows 365 Enterprise GPU Cloud PCs?

Regardless of the specific GPU tier selected, all Enterprise GPU Cloud PCs share these fundamental features:

  • Flexible, per-user monthly pricing with automatic subscription renewal.
  • Seamless integration with Microsoft Intune for comprehensive threat defense and device administration across PCs and mobile devices.
  • Full compatibility with desktop versions of Microsoft 365 applications, including Outlook, OneDrive, and Microsoft Teams.
  • Support demanding professional tools such as Microsoft Visual Studio, Power BI, and Dynamics 365
  • Designed to scale to unlimited users, making them ideal for large-scale deployments.
GPU Tier Description
Standard Best for running basic graphics acceleration. Suitable for general productivity tasks benefiting from fundamental GPU support.
Super Best for applications with greater specification requirements and high-end graphics workloads. Ideal for applications requiring more significant GPU resources.
Max Best for the most demanding graphics workloads. Suited for complex 3D rendering, advanced simulations, and other graphically intensive tasks.

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

How much does a Windows 365 subscription cost?

The cost of your subscription varies depending on the Cloud PC configuration you choose, which includes factors like CPU, RAM, and storage. Microsoft offers different plans to accommodate various budgets and performance needs, and you can find pricing details on the official Microsoft website or through a Microsoft Cloud Solution Provider.

What factors influence Windows 365 pricing?

Several elements contribute to your final cost. The table below helps you understand these factors and select the most cost-effective plan for your organization.

Pricing factor Description Impact on cost
Cloud PC configuration Amount of CPU, RAM, and storage. Higher configurations increase cost.
Plan Business vs. Enterprise plans. Enterprise plans are generally more expensive due to advanced features.
Subscription type Monthly vs. annual subscriptions. Annual may offer discounts.
GPU Options Standard, Super, Max tiers. Higher GPU tiers significantly increase cost.
Microsoft licensing Existing Microsoft 365 licenses. Can influence pricing; may offer discounts or bundled options.

Where can I find accurate pricing information?

To obtain the most up-to-date and accurate pricing details, it's recommended to:

  • The official Microsoft website provides detailed information and pricing for Business plans and Enterprise plans.
  • A Microsoft Cloud Solution Provider (CSP) can provide you personalized guidance and pricing based on your specific requirements.

How can I optimize Windows 365 costs?

To optimize the cost of Windows 365, you need to understand its cost structure. This section outlines the factors influencing subscription expenses to help you find the ideal subscription: one that aligns with your organization's performance requirements and your budget. 

Here are three key factors affecting cost structure and the steps you can take for each:

  • Right-size your Cloud PCs: Avoid over-provisioning resources that you don't need. Choose configurations that match your users' actual workload requirements.
  • Utilize auto-scaling: If available, use auto-scaling features to dynamically adjust resource allocation based on usage. This ensures you only pay for the resources you actively consume.
  • Consider hybrid work scenarios: Evaluate if a mix of physical and Cloud PCs can optimize costs. Some users may only require Cloud PCs for specific tasks or during certain periods.

Automated cost optimization tools can also help significantly. Here are some specific ways a tool like Nerdio can save you money:

  • Nerdio analyzes resource utilization patterns and identifies idle or underutilized Cloud PCs.
  • Nerdio provides features that can automatically power down or deallocate Cloud PCs during off-peak hours, reducing unnecessary costs.
  • Nerdio's reporting and analytics capabilities offer insights into resource consumption, allowing you to fine-tune your Cloud PC configurations and identify potential cost savings.
  • By identifying and eliminating unnecessary resources, Nerdio helps you ensure that your investment is cost-effective and aligned with your actual usage patterns.

Which Windows 365 subscription is right for me?

The best choice depends on your organization's size, IT management needs, scalability requirements, and specific use cases. Be sure to consider your current and future needs when making your decision.

Choose Business if:

  • You’re a small to medium-sized business.
  • You need a simple and easy-to-manage solution.
  • You have fewer than 300 users.

Choose Enterprise if:

  • You’re in a large enterprise.
  • You require advanced management and integration capabilities.
  • You need to support a highly scalable deployment.

Choose Government if:

  • You’re a US government agency or qualified contractor.
  • You need to meet specific government security and compliance requirements.

Choose Frontline if:

  • You have a large number of frontline workers.
  • You need a cost-effective solution for shared devices and shift work.
  • You need to optimize the experience for frontline employees.

How do I set up a Windows 365 subscription?

Diagram showing the steps to set up a Windows 365 subscription.

This section gives a good overview of the steps involved in meeting requirements, purchasing, provisioning, accessing, and managing your subscription.

What are the system requirements for Windows 365?

Your first step is to make sure your devices meet the minimum system requirements for a smooth experience. These requirements vary slightly depending on the plan and the cloud PC configuration you choose. Here's a general overview of the requirements:

  • Device
    • CPU: A modern processor with sufficient cores and clock speed.
    • RAM: Adequate RAM for optimal performance, especially for resource-intensive applications.
    • Storage: Sufficient local storage for the operating system, applications, and user data.
    • Network: Reliable internet connection with sufficient bandwidth for smooth remote access and data transfer.
  • Operating System
    • Windows 10 or later (for the local device)
    • Supported browsers (Chrome, Edge, Firefox) for accessing the cloud PC.

Note: For the most up-to-date and detailed requirements, refer to the official Microsoft documentation.

Once you've confirmed your system meets the requirements, you can proceed with the subscription and Cloud PC setup.

How do you purchase a Windows 365 subscription?

You'll need to acquire a Windows 365 subscription through the Microsoft 365 admin center or a Microsoft Cloud Solution Provider (CSP). The specific steps will depend on your existing Microsoft licensing and the type of plan you choose (Business or Enterprise).

  • Direct Purchase (Microsoft 365 Admin Center):
    • Log in to the Microsoft 365 admin center with your administrator credentials.
    • Navigate to the "Purchase services" section.
    • Search for "Windows 365" and select the desired plan.
    • Follow the prompts to complete the purchase.
  • Through a Cloud Solution Provider:
    • Contact your preferred Microsoft CSP.
    • Discuss your requirements and choose the appropriate Windows 365 plan.
    • The CSP will handle the subscription provisioning.

How do you provision Cloud PCs?

After purchasing your subscription, you'll need to provision Cloud PCs for your users. The provisioning process involves assigning licenses and configuring the Cloud PC settings. This process differs slightly between Business and Enterprise as you can see for these 5 features:

Feature Business Enterprise
Management tool Microsoft 365 admin center (Windows 365 section) Microsoft Endpoint Manager (MEM)
Provisioning method License assignment via the admin center Policy-based configuration in MEM
Configuration options Limited; primarily license assignment Extensive; image selection, network configuration, user assignments, etc.
Automation Minimal; user access instructions via email High; automated provisioning based on defined policies
User access Instructions delivered via email after license assignment Controlled and implemented via MEM policies

How do you access and manage your Cloud PC?

Your users can access their Cloud PCs through a web browser or the Remote Desktop app. How you manage these Cloud PCs will vary depending on the product you choose.

  • Access:
    • Web Browser: Navigate to windows365.microsoft.com and log in with your credentials.
    • Remote Desktop App: Download and install the Remote Desktop app on your device, then connect to your Cloud PC.
  • Management:
    • Business: Simplified management via the Windows 365 web portal.
    • Enterprise: Advanced management through Microsoft Endpoint Manager (MEM).

How does Nerdio help deploy Windows 365?

Deploying a cloud-based desktop solution like Windows 365 can introduce complexities, especially for larger organizations. Nerdio simplifies these processes, offering automation and management tools that streamline your deployment.

How does Nerdio automate Windows 365 deployment?

Nerdio provides pre-built templates and automation scripts that significantly reduce the manual effort involved in setting up and configuring Windows 365 environments. You can quickly deploy Cloud PCs with standardized configurations, ensuring consistency and efficiency.

  • Automated image management: Nerdio automates the creation and deployment of custom Windows 365 images, simplifying software updates and patching.

  • Simplified network configuration: Nerdio streamlines the process of connecting your Windows 365 environment to your existing network infrastructure.

  • Automated user provisioning: Nerdio automates the process of assigning licenses and provisioning Cloud PCs for users, saving you time and effort.

How does Nerdio simplify Windows 365 management?

Once your Windows 365 environment is deployed, Nerdio provides a centralized management platform that simplifies ongoing administration. You can easily monitor performance, manage user access, and troubleshoot issues from a single console.

  • Centralized monitoring and reporting: Nerdio provides comprehensive dashboards and reports that give you insights into the performance and usage of your environment.

  • Simplified user management: Nerdio simplifies the process of managing user access and permissions for your Cloud PCs.

  • Automated cost optimization: Nerdio provides tools and features that help you optimize your costs by identifying and eliminating unnecessary resources.

How does Nerdio enhance security for Windows 365?

Security is paramount in any cloud deployment. Nerdio enhances the security of your environment with advanced features and capabilities.

  • Automated security patching: Nerdio automates the process of applying security patches to your Cloud PCs, ensuring they are always up-to-date.

  • Enhanced security monitoring: Nerdio provides enhanced security monitoring and alerting capabilities, helping you identify and respond to potential threats.

  • Granular access control: Nerdio allows you to implement granular access control policies, ensuring that only authorized users can access your Cloud PCs.

Comparing to AVD

When it comes to pricing and management, the key difference between Windows 365 and Azure Virtual Desktop (AVD) is about simplicity versus flexibility.

Windows 365 offers straightforward, per-user monthly pricing with fixed configurations, making it a great choice if you want predictability and minimal management overhead.

AVD, on the other hand, is all about customization—it uses a consumption-based model that can be fine-tuned based on how your users work, and supports multi-session capabilities for added efficiency. That flexibility comes with a tradeoff though: AVD requires more hands-on management and careful cost monitoring to make the most of its potential savings.

Understanding where your priorities lie—simplicity or control—can help you choose the best fit for your business. This table compares each on a number of pricing factors:

Factor Windows 365 AVD
Pricing model Flat per-user, per-month Pay-as-you-go, consumption-based
Configuration flexibility Fixed bundles (limited options) Highly customizable (VM size, GPU, storage)
Plan types Business & Enterprise, with clear tiers No fixed plans—fully customizable based on resources
GPU options Standard, Super, Max Available (adds significant cost)
Multi-session support Single user per Cloud PC Multi-session support (cost-effective for some users)
Licensing requirement Microsoft 365 licenses required for Enterprise plan Microsoft 365 licenses required
Predictability High (fixed monthly) Variable (depends on usage, scaling strategy)
Management overhead Lower (Microsoft manages infrastructure) Higher (admin must manage scaling, VMs, networking)

Learn more about Windows 365 subscription

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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