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Diagram of Citrix on Azure architecture

Citrix on Azure

This guide reviews Citrix on Microsoft Azure, its growing challenges and costs, and why AVD with Nerdio offers a modern VDI alternative.

Carisa Stinger | June 12, 2025

Table of Contents

Introduction

This guide offers a straightforward look at Citrix on Azure, focusing on the complexities and challenges that are leading many to explore alternatives like Azure Virtual Desktop (AVD) or Windows 365 managed with a solution like Nerdio.

Disclaimer: Content referencing Citrix products is based on public information from the Citrix website and the sources listed in the citations, current as of the last article update. For the latest product details and further inquiries, please consult the official Citrix website.

What was the original promise of Citrix on Azure?

Traditionally, "Citrix on Azure" meant using Citrix's virtualization tools on Microsoft's Azure cloud platform.1 The core concept was to leverage a virtual desktop infrastructure, which decouples the user's desktop environment—including the operating system, applications, and data—from their physical endpoint device, allowing it to be hosted and managed centrally.

The idea was to combine Citrix's application and desktop delivery features with Azure's infrastructure, often through products like Citrix Virtual Apps and Desktops (CVAD) or its cloud-based counterpart, Citrix DaaS (Desktop as a Service), which offers a subscription-based model to deliver these virtual workspaces.1 The end goal was to deliver Windows desktops and apps to your users on various devices.3

Why do enterprises consider Citrix on Azure?

Enterprises look to Citrix on Microsoft Azure for several reasons. Leveraging Azure VDI solutions, such as Azure Virtual Desktop, allows enterprises to deploy and scale virtualized desktops and applications directly within Microsoft's secure and globally available cloud infrastructure, offering a path to modernize end-user computing.

  • User Experience: Citrix HDX technology was known for optimizing performance, especially for demanding applications or over challenging networks.4
  • Management Tools: Citrix offered a suite of tools for image and application management, like Machine Creation Services (MCS) and Provisioning Services (PVS).5
  • Security Features: Additional security layers, such as granular access controls and session recording, were often highlighted.4
  • Hybrid Cloud Capabilities: It provided a way to manage both on-premises and Azure-based Citrix workloads.1

However, the landscape is shifting, and these perceived benefits are now being weighed against significant new challenges.

How was Citrix intended to enhance Azure Virtual Desktop (AVD)?

Azure Virtual Desktop (AVD) is Microsoft's own cloud VDI service, offering features like Windows multi-session capabilities and integration with the Microsoft ecosystem.4 A key component of modern VDI solutions like Azure Virtual Desktop is its support for Windows 11 Enterprise, which offers enhanced security features, multi-session capabilities ideal for virtualized environments, and a familiar, productive user experience.

Citrix solutions were often positioned as an enhancement layer on top of AVD, aiming to add more advanced management, better user experience through HDX, and more granular security.4

While this best-of-both-worlds approach sounded appealing, it also added layers of complexity and cost, which are now under scrutiny.

Why are IT leaders switching to AVD?

This guide explains why AVD with Nerdio is the best answer to the Citrix challenge.

Learn why

What are the underlying technical complexities?

Deploying and managing Citrix on Azure involves significant technical depth:

 

Diagram of Citrix architecture

 

  • Azure Infrastructure: You need to configure and manage Azure Virtual Machines, Storage (Managed Disks, Azure Files for profiles), Virtual Networks, Network Security Groups, and Azure Active Directory.6 Effectively managing authentication, the process that rigorously confirms user identities before permitting entry to virtual desktops and critical applications, is paramount for securing the VDI environment and often involves integrating services like Azure Active Directory with Citrix components.
  • Citrix Components: This includes setting up and maintaining Citrix Delivery Controllers (if not using Citrix DaaS exclusively), StoreFront servers, License Servers, and potentially Citrix ADC (NetScaler) appliances.2
  • Image Management: Creating and maintaining "golden images" for virtual desktops, whether using MCS or PVS, requires careful planning and ongoing effort, especially in Azure.2
  • Subscription and Resource Organization: Proper planning of Azure subscriptions, management groups, resource groups, and naming conventions is crucial but adds to the administrative overhead.2

These technical demands contribute to the overall operational complexity of a Citrix-Azure environment.

What are common enterprise use cases (and their emerging challenges)?

Citrix on Azure has traditionally been used for:

  • Remote and Hybrid Work: Providing access to corporate resources.
  • Specialized Applications: Delivering graphics-intensive or legacy applications.
  • Secure Access: For contractors or in regulated industries.
  • Business Continuity: Using Azure as a DR site. 1

While these use cases remain relevant, the cost and complexity of using Citrix to address them are causing many organizations to seek more efficient alternatives.

What are the critical design and deployment considerations (and why they matter more now)?

Deploying Citrix on Azure involves many decision points:

  • Azure Tenant and Licensing: Correctly configuring your Azure AD tenant and navigating Microsoft licensing (like Hybrid Use Benefit, M365 E3/E5 for AVD access) is essential for cost control.8
  • Subscription Planning: Deciding on single vs. multiple Azure subscriptions impacts scale, governance, and cost management. Limits on VDAs per subscription (e.g., ~2,500) need consideration.2
  • Service Principals: Securely configuring service principal accounts for Citrix Cloud to interact with Azure requires careful permission scoping (subscription-level vs. narrow-scope).8
  • Storage Choices: Selecting appropriate storage for VMs (Premium SSDs recommended for VDAs) and user profiles, often leveraging FSLogix to maintain user personalization and data persistence in non-persistent VDI environments, significantly impacts performance and cost.2
  • Cost Optimization: While Azure RIs and Citrix Autoscale can help, they add another layer of management to an already complex cost structure.2

Each of these considerations highlights the inherent complexity and potential for escalating costs, making simpler, more integrated solutions increasingly attractive.

What about Citrix DaaS Standard for Azure?

Citrix DaaS Standard for Azure was presented as a turnkey, Azure-hosted solution to simplify virtual desktop and app delivery, supporting various desktop types and deployment models (non-domain joined, domain-joined).10 It allowed customers to use their own Azure subscriptions, offering some flexibility.10

However, even with DaaS offerings, organizations are still facing broader challenges with the Citrix ecosystem, including pricing and renewal terms, which are prompting a re-evaluation of its overall value.

Why are companies re-evaluating their Citrix deployments? The Key Challenges.

Many organizations are now facing significant headwinds with their Citrix environments, leading them to actively seek alternatives:

  • Soaring Costs and Restrictive Licensing:
    • Unexpected Price Hikes: Reports indicate that some enterprises are seeing renewal prices for Citrix licensing increase dramatically, sometimes by 50% or more, with little notice.11 This unpredictability makes budgeting extremely difficult.
    • Forced Transitions and Uplifts: Citrix has been moving customers to new SKU setups (like Universal Hybrid Multi-Cloud - UHMC) at renewal, often with a minimum license count (e.g., 250 licenses) and significant cost uplifts (10-30% or more).12
    • No License Count Reduction: A major pain point is the reported inability to lower license counts at renewal, even if actual usage has decreased.12 This means paying for licenses you don't need.
    • Aggressive Renewal Tactics: Some customers report aggressive tactics and a firm stance on not lowering renewal revenue, even when pushed.13 This can feel like being locked into escalating costs.
    • Broader Industry Trend: This isn't isolated. The acquisition of VMware by Broadcom, for example, has also led to significant licensing changes and price increases for VMware customers, indicating a tougher environment for users of traditional VDI solutions.14
  • Migration and Management Complexity:
    • Image Management: Migrating existing images from on-premises Citrix to Azure or creating new ones optimized for the cloud is often complex, especially with legacy OS or third-party tools.16 Manual image management without automation tools can be highly inefficient.17
    • Application Compatibility: Ensuring legacy applications work correctly in a cloud environment can be a hurdle.16 Moreover, integrating Microsoft Intune, a cloud-based unified endpoint management (UEM) service, can streamline the deployment and management of applications to these virtual desktops, though some users report challenges when deploying to non-persistent VDIs using such tools. 
    • User Profile Migration: Moving from older profile solutions to FSLogix (common with AVD) can be difficult, and ensuring adequate storage performance for profiles is critical.16
    • Adjusting to Cloud-Native Architecture: IT teams accustomed to on-premises Citrix face a learning curve with Azure's cloud-native concepts. Adopting Infrastructure as Code (IaC) is often necessary for efficient AVD management but requires new skills.16
    • Technical Pain Points: Users have reported issues with configuring ephemeral OS disks, managing images manually, and correctly sizing subnets in Azure.1

How can Nerdio help you navigate away from Citrix complexities?

If the challenges with Citrix resonate with you, Nerdio Manager for Enterprise offers a streamlined path to managing and optimizing Azure Virtual Desktop (AVD). Nerdio also provides expert management for Windows 365, which provides individual users with their own dedicated Cloud PC, offering a complete and personalized Windows experience streamed from the Microsoft cloud with predictable per-user pricing. This makes them compelling alternatives:

  • Simplified AVD Management and Automation: Nerdio significantly reduces the complexity of deploying and managing AVD environments. It automates routine tasks like provisioning VMs, configuring policies, and managing user identities, which can be time-consuming and error-prone in Citrix or native AVD setups.16
  • Cost Optimization for Azure: Nerdio helps you control Azure costs through intelligent auto-scaling based on actual usage, optimizing resource provisioning, and offering flexible pay-as-you-go licensing. This contrasts sharply with the high upfront and ongoing costs often associated with Citrix.16
  • Streamlined Image Management: Nerdio provides powerful tools to automate master image creation, migrate existing images (from Citrix or elsewhere), manage image lifecycles, and simplify application installation onto images.16
  • Efficient Application Delivery: Nerdio simplifies application deployment and management within AVD, leveraging Azure's dynamic scaling and integrating with tools like Microsoft Intune and SCCM.16
  • Smooth User Profile Migration: For transitions to FSLogix on AVD, Nerdio automates the setup of FSLogix configurations and Azure Files storage, leading to less disruptive migrations.16
  • Unified Endpoint Management (UEM) with Microsoft Native Tools: Nerdio enhances UEM by leveraging Microsoft Intune and Azure Active Directory, offering a more integrated approach than managing separate Citrix UEM components.18

Why Consider AVD with Nerdio as a Citrix Alternative?

Aspect Traditional Citrix Environments AVD with Nerdio Manager
Management Complexity High, often manual18 Low to moderate, automated18
Cost Structure High upfront, restrictive renewals, potential unexpected increases18 Consumption-based (Azure), optimized by Nerdio16
Automation Varies, can be complex to implement Extensive built-in for AVD18
Image Management Can be cumbersome16 Streamlined, automated16
Licensing Complex, inflexible16 Simplified with M365, Nerdio PAYG16
Scalability Possible, but adds to complexity Native Azure scalability, simplified by Nerdio18

Nerdio empowers you to leverage the full potential of Microsoft AVD and Windows 365 without the traditional VDI complexities and cost burdens associated with solutions like Citrix.

See a demo to learn more about how Nerdio can help you build, manage and optimize a world-class virtual desktop environment.

Switching from Citrix to AVD?

We've got you covered. This guide explains every step of the transition and how Nerdio simplifies your journey.

Learn how

What are your next steps for evaluating alternatives?

If you're facing challenges with Citrix pricing, renewals, or complexity, it's time to evaluate a new path forward:

  1. Assess Your Current Citrix Pain Points: Quantify the impact of rising costs, restrictive terms, and operational overhead.
  2. Define Your Requirements for a Modern VDI/DaaS Solution: Focus on simplicity, cost-effectiveness, scalability, and integration with the Microsoft ecosystem.
  3. Explore Azure Virtual Desktop (AVD) with Nerdio:
    • Review Nerdio Resources: Explore how Nerdio Manager for Enterprise simplifies AVD deployment, management, and optimization.16
    • Consider a Proof-of-Concept (PoC): Experience firsthand how AVD with Nerdio can address your specific use cases and overcome the challenges you're facing with Citrix.
    • Calculate Potential TCO Savings: Compare the transparent, consumption-based costs of AVD managed by Nerdio against your current or quoted Citrix expenses.
  4. Plan Your Migration Strategy: If AVD with Nerdio looks like the right fit, develop a phased migration plan. Nerdio offers tools and expertise to simplify the transition from Citrix to AVD, including image and profile migration.16

The current VDI landscape is evolving rapidly. Don't let legacy complexities and unfavorable vendor terms hold your organization back. Exploring modern solutions like Azure Virtual Desktop, managed and optimized by Nerdio, can offer a more agile, cost-effective, and future-proof approach to end-user computing.

Learn more about Citrix on Azure

Footnotes

  1. Citrix on Azure - Citrix, https://www.citrix.com/global-partners/microsoft/azure.html
  2. Reference Architecture: Citrix DaaS - Azure - Reference Architectures, https://community.citrix.com/tech-zone/design/reference-architectures/virtual-apps-and-desktops-azure/
  3. Azure Virtual Desktop, https://azure.microsoft.com/en-us/products/virtual-desktop
  4. What is Azure Virtual Desktop (AVD)? Why Citrix and AVD Work ..., https://techcommunity.microsoft.com/blog/azureinfrastructureblog/maximizing-virtual-desktop-performance-uniting-azure-virtual-desktop-with-citrix/4364244
  5. The benefits of using Citrix on Azure Virtual Desktop and why you ..., https://ultima.com/blog/the-benefits-of-using-citrix-on-azure-virtual-desktop-and-why-you-should-keep-both-solutions/
  6. What Is Virtual Desktop Infrastructure (VDI)? - Microsoft Azure, https://azure.microsoft.com/en-us/resources/cloud-computing-dictionary/what-is-virtual-desktop-infrastructure-vdi
  7. Citrix Provisioning on Microsoft Azure | Citrix Provisioning 2503, https://docs.citrix.com/en-us/provisioning/current-release/configure/configure-azure.html
  8. Design Decision: Azure Specific Considerations - Design Decisions ..., https://community.citrix.com/tech-zone/design/design-decisions/azure-system-considerations/
  9. Resource organization considerations for Citrix on Azure - Cloud ..., https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/scenarios/azure-virtual-desktop/landing-zone-citrix/citrix-resource-organization
  10. Tech Brief: Citrix DaaS Standard for Azure - Citrix Community, https://community.citrix.com/tech-zone/learn/tech-briefs/citrix-daas-for-azure/
  11. A Year of Reckoning for Virtually (Unaffordable) Desktop Infrastructure - Coder, https://coder.com/blog/a-year-of-reckoning-for-virtually-unaffordable-desktop-infrastructure
  12. Citrix 2025 Changes - What to Expect : r/Citrix - Reddit, https://www.reddit.com/r/Citrix/comments/1ipgs9l/citrix_2025_changes_what_to_expect/
  13. Anyone else running into issues with Citrix license renewals lately? - Reddit, https://www.reddit.com/r/Citrix/comments/1jjs244/anyone_else_running_into_issues_with_citrix/
  14. Broadcom VMware Ups Minimum Core Purchase 'Substantially,' Levies Late Renewal Penalties - CRN, https://www.crn.com/news/data-center/2025/broadcom-vmware-ups-minimum-core-purchase-substantially-levies-late-renewal-penalties
  15. Broadcom's VMware Acquisition: What It Means for Avi Networks Customers - Radware, https://www.radware.com/blog/applicationdelivery/broadcom-s-vmware-acquisition/
  16. Overcoming 5 common challenges in Citrix to AVD migrations - Nerdio, https://getnerdio.com/resources/overcoming-5-common-challenges-in-citrix-to-azure-virtual-desktop-migrations/
  17. Citrix to Azure AVD Lessons learned : r/AZURE - Reddit, https://www.reddit.com/r/AZURE/comments/1inxgib/citrix_to_azure_avd_lessons_learned/
  18. Eliminating Complexity: Nerdio and Azure Virtual Desktop vs. Citrix ..., https://getnerdio.com/resources/eliminating-complexity-nerdio-and-azure-virtual-desktop-vs-citrix/

About the author

Photo of Carisa Stinger

Carisa Stinger

Head of Product Marketing

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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