Big changes are on the way for Microsoft’s Services Provider License Agreement (SPLA), and if you’re still hosting Remote Desktop Services (RDS) in Azure or another public cloud, they’ll directly impact how you operate. Now is the time to start planning what’s next.
Microsoft is evolving its licensing policies to better align with the original intent of SPLA and to encourage adoption of modern, cloud-native desktop solutions like Azure Virtual Desktop (AVD).
While this transition creates opportunities, it also presents immediate challenges for providers currently hosting SPLA workloads on platforms like Microsoft Azure. Let’s unpack what’s changing and how Nerdio can help.
What’s changing with SPLA and RDS?
According to Microsoft, SPLA was originally designed for partners to offer hosted services from their own datacenters, not to enable managed service providers (MSPs) to host workloads on third-party datacenters like Azure or AWS. To better align with that intent and support a more robust hosting partner ecosystem, Microsoft is updating the SPLA program to remove the ability to outsource SPLA licenses on “Listed Provider” infrastructure (which includes Azure, AWS, Google, and Alibaba).
In plain terms: Starting September 30, 2025, you’ll no longer be able to host RDS in Azure using SPLA licenses. And if your environment depends on that model today, you’ll need to transition to a supported alternative.
Why AVD is the logical next step
For organizations that need to modernize their desktop virtualization strategy, Azure Virtual Desktop (AVD) offers a natural path forward. It’s built for the cloud, supported by Microsoft, and optimized for today’s hybrid workforce. In fact, MSPs have managed to save nearly $100,000 by moving off RDS and other hybrid solutions.
AVD gives you better cost control through usage-based pricing and built-in auto-scaling. It improves security with Entra ID, Microsoft Defender, and conditional access. And when paired with Microsoft 365, it delivers a smoother experience for end users, all while fitting neatly into your existing Microsoft Cloud footprint.
Unlike RDS, AVD is built to evolve—and it doesn’t require creative workarounds to stay compliant.
How Nerdio helps you migrate from RDS to AVD
Transitioning from SPLA + RDS to AVD can feel complex, especially for MSPs managing multi-tenant environments or legacy infrastructure. Nerdio Manager for MSP helps streamline every step with:
- Automated host pool creation and user provisioning—no custom scripting required.
- Pre-built templates for FSLogix, auto-scale, and security policies.
- Multi-tenant visibility so you can manage all your clients from one console.
- Cost estimation tools to forecast and control Azure spend.
- Built-in guardrails like policy backup, rollback, and audit logging.
With Nerdio, you can modernize your desktop infrastructure and remain aligned with Microsoft’s licensing requirements without starting from scratch or ballooning your support costs.
Want the full scoop? Join us for the webinar
Join our upcoming webinar to learn exactly what’s changing with SPLA, what it means for MSPs still running RDS, and how to make a smooth and strategic move to AVD with Nerdio.
We’ll break down key milestones in Microsoft’s licensing transition, the risks of waiting too long to migrate, and real-world strategies for scaling AVD without adding overhead.
Don’t wait until the last minute. Get ahead of the change and build a roadmap that works for you and your clients.
Register for the webinar
