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Diagram displaying how Virtual Desktop Infrastructure (VDI) works

Virtual Desktop Infrastructure

This guide provides an objective overview of Virtual Desktop Infrastructure (VDI), including how it works, key benefits, challenges, use cases, and comparisons.

Carisa Stinger | May 21, 2025

Table of Contents

What is VDI?

Virtual Desktop Infrastructure (VDI) is a technology that hosts desktop environments on centralized servers and delivers them to end users over a network. Instead of running the operating system and applications locally, users access a virtual desktop from nearly any device—whether in the office, at home, or on the go. This setup gives you centralized control over desktops, improves data security, and simplifies IT management.

VDI can help reduce hardware costs, support remote work strategies, and ensure a consistent experience for your users. It’s especially useful for organizations that need to manage large numbers of desktops efficiently, securely, and at scale.

How does VDI work?

VDI delivers desktop environments from a centralized server to endpoint devices over a network. When a user logs in, they connect to a virtual machine (VM) hosted in your data center or cloud environment.

Diagram displaying how Virtual Desktop Infrastructure (VDI) works

  • Hypervisor: Software layer (e.g., VMware ESXi, Microsoft Hyper-V) that runs multiple VMs on a physical host.
  • Virtual machines (VMs): Each user accesses a VM with its own OS, apps, and settings.
  • Connection broker: Authenticates users, assigns them to the appropriate VM, and manages session states.
  • Remote display protocols: Protocols like RDP (Remote Desktop Protocol), PCoIP (PC-over-IP), or HDX transmit keyboard, mouse, and display data between the VM and the user’s endpoint device.

What are the types of VDI deployments?

The choice between persistent and non-persistent VDI impacts both user experience and IT management. Here’s a table to help you decide what best fits your needs:

  Persistent VDI Non-persistent VDI
Description Each user has a dedicated VM with a unique desktop that saves settings, files, and changes between sessions. Users are assigned a generic VM that resets after logout—no data or settings are saved.
Best For Power users or those who need customization. Task workers, call centers, or kiosk environments.
Pros Personalized experience, supports application installs and custom settings. Easier to manage, ideal for large user pools with similar needs.
Cons Higher storage and management overhead. No data persistence; users need separate storage for files.

How does VDI differ from other desktop virtualization solutions?

When evaluating desktop virtualization options, it's essential to understand how Virtual Desktop Infrastructure (VDI) differs from other solutions like Desktop as a Service (DaaS) and Remote Desktop Services (RDS). Each offers unique benefits and trade-offs in terms of management, cost, scalability, and user experience.

VDI vs. DaaS: What are the key differences?

While both VDI and DaaS deliver virtual desktops to end users, they differ primarily in infrastructure ownership and management responsibility.

Examples of VDI software and solutions include platforms like VMware Horizon, Citrix Virtual Apps and Desktops, and Oracle Virtual Desktop Infrastructure. While established solutions like Citrix Virtual Apps and Desktops exist, many organizations actively investigate Citrix alternatives, particularly when comparing DaaS offerings, to find solutions that may offer more favorable cost structures, simplified management, or tighter integration with their chosen cloud platform.

Additionally, Microsoft offers Azure Virtual Desktop (AVD), which is a Desktop as a Service (DaaS) solution on the cloud service Azure, and Windows 365, a cloud-based PC service; while these are not strictly traditional VDI software, they provide similar virtualized desktop experiences. Another approach for leveraging Microsoft's cloud is running Citrix on Azure, which enables businesses to host their Citrix virtual app and desktop workloads in Azure, thereby gaining cloud flexibility and scalability while maintaining their familiar Citrix management plane.

Category VDI (Virtual Desktop Infrastructure) DaaS (Desktop as a Service)
Ownership You own and manage the infrastructure (servers, storage, networking). Hosted and managed by a third-party service provider.
Cost Structure Higher upfront CapEx for hardware and licenses; ongoing maintenance costs. Subscription-based OpEx model; more predictable monthly costs.
Scalability Limited by available on-prem resources; scaling requires hardware investment. Easily scalable; resources can be adjusted on demand via the cloud.
IT Management Requires in-house expertise for setup, updates, and troubleshooting. Provider handles infrastructure management, updates, and maintenance.

VDI vs. RDS: How do they compare?

VDI and Remote Desktop Services (RDS) are both Microsoft technologies that provide remote desktop access, but they differ in architecture and user experience.

Category VDI (Virtual Desktop Infrastructure) RDS (Remote Desktop Services)
Architecture Each user gets a dedicated virtual machine running a desktop OS (e.g., Windows 10/11). Multiple users share sessions on a single server running a server OS (e.g., Windows Server).
User Experience Personalized desktop experience with full isolation between users. Shared session environment with limited personalization.
Resource Allocation Dedicated resources per user; more consistent performance. Shared resources; performance can vary based on user load.
Cost Higher infrastructure and licensing costs due to per-user VMs. More cost-effective; fewer resources and licenses needed per user.

What are the key benefits of VDI for enterprises?

VDI offers several strategic advantages that can help you improve IT efficiency, support a distributed workforce, and strengthen your organization’s security posture. Below are some of the most commonly cited and verifiable benefits for enterprise environments.

Enhanced security

With VDI, desktops and data are hosted in your data center or a secure cloud environment—not on local devices. This centralized model helps reduce the risks associated with data loss or theft.

  • Data stays within the data center or cloud, not on endpoint devices.
  • IT can enforce uniform security policies and configurations across all virtual desktops.
  • It’s easier to isolate threats and apply patches or updates quickly.

Simplified IT management

VDI centralizes control, making it easier for your IT team to manage desktops, deploy applications, and maintain systems from a single location.

  • Patch management and software updates can be applied once to a base image. To further enhance desktop security and reduce administrative burden, Windows Autopatch automates the updating of Windows OS and Microsoft 365 Apps on virtual desktops, ensuring they remain current and protected against emerging threats with minimal IT intervention.
  • IT can rapidly provision or decommission desktops as needed.
  • Endpoint devices require less support and can be simpler (thin clients, for example).

Cost efficiency

VDI can reduce some infrastructure and operational costs, particularly over time and at scale. While initial setup can be capital-intensive, centralized management and extended hardware lifespans can deliver long-term savings.

The table below compares traditional desktops and VDI in terms of both cost and operational efficiency:

Category Traditional Desktops VDI
Hardware Costs High-performance endpoints required for each user. Lower-cost endpoints (e.g., thin clients, reused devices) reduce capital spend.
Refresh Cycles 3–5 years; devices must be regularly replaced to maintain performance. Longer lifespan for endpoints; most processing happens on the server side.
IT Support Effort Local troubleshooting for each device increases overhead. Centralized control simplifies updates, patching, and provisioning.
Energy Consumption High, due to many distributed, full-power devices. Lower, especially with thin clients and centralized infrastructure optimization.
Software Licensing OS and application licenses needed for every endpoint. Shared licensing models possible; centralized licensing can reduce duplication.
Security Management Varies by device; harder to enforce consistent policies. Centralized security policies reduce risk and simplify compliance.
Deployment Speed Manual setup per device can be time-consuming. Rapid provisioning from golden images accelerates deployment.
Disaster Recovery Device failure may result in data loss without backups. Centralized storage simplifies backup, replication, and recovery.

Support for remote work and BYOD policies

VDI enables secure access to enterprise desktops from virtually any device, making it ideal for remote access or hybrid workforces and BYOD (bring your own device) environments.

  • Remote workers can access their work desktops from any personal device (such as personal computer, smartphone, or tablet).
  • IT retains control over the desktop environment regardless of the endpoint.
  • Enhances business continuity in case of office closures or disruptions.

What are the challenges and considerations in implementing VDI?

While VDI offers significant benefits, implementing it at scale involves several technical and operational considerations. Understanding these challenges up front can help you plan effectively and avoid costly missteps.

Initial setup complexity

The above diagram shows a typical architectural setup for Azure Virtual Desktop. As you can see, deploying VDI typically requires significant planning and infrastructure investment. You'll need to architect a solution that aligns with your performance, security, and user requirements.

  • Requires server, storage, and networking infrastructure sized for peak load.
  • Involves configuring virtualization hosts, connection brokers, and load balancers. Particularly in cloud-hosted VDI, such as on Microsoft Azure, an Azure Load Balancer is a key component that improves fault tolerance and user experience by automatically distributing traffic from end-user connection requests across multiple virtual machines.
  • May require changes to identity management, storage policies, and endpoint provisioning.

Performance and user experience

User satisfaction depends heavily on consistent desktop performance. Network latency, bandwidth, and back-end resource constraints can all affect responsiveness.

  • Network reliability is critical—VDI depends on strong, stable connections.
  • High IOPS (input/output operations per second) are required to avoid sluggish performance.
  • Applications with high graphics or compute demands may require GPU-accelerated VDI.

Cost implications

Although VDI can reduce long-term IT operational costs, initial investments are often high and ongoing licensing can be complex.

  • Upfront CapEx includes servers, storage, networking, and virtualization software.
  • Licensing costs vary by vendor and may include OS, VDI software, and endpoint access.
  • Power, cooling, and physical space requirements increase with on-premises deployments.

Scalability

Scaling VDI effectively means more than just adding users—it involves capacity planning, monitoring, and resource optimization.

  • Capacity planning must account for peak usage, not just average load.
  • Scaling may require additional hardware, especially for compute- or storage-intensive use cases.
  • Monitoring tools are necessary to ensure performance doesn’t degrade as user count grows.

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 does VDI support compliance and data protection?

VDI centralizes desktops and data within your data center or cloud environment, making it easier to enforce security policies and support compliance efforts. By minimizing the use of local storage and enabling consistent controls, VDI helps reduce risk and improve visibility.

Centralized control

VDI allows your IT team to manage all virtual desktops from a central location, ensuring consistent policy enforcement across your organization.

  • Enforce group policies, access controls, and security settings uniformly.

  • Centralize audit logging and monitoring to support compliance with regulations like HIPAA, GDPR, and PCI DSS.

  • Limit access based on user roles, device type, or location using conditional access controls.

Data protection

With VDI, sensitive data stays within the secure perimeter of your data center or cloud—not on user devices—reducing the attack surface.

  • Data never resides permanently on endpoints, lowering the risk of data loss or theft.

  • Backups and snapshots of virtual desktops can be managed centrally.

  • Integration with encryption, multi-factor authentication (MFA), and endpoint detection and response (EDR) tools is simplified.

What are the key considerations when choosing a VDI solution?

Choosing the right VDI solution depends on your organization’s technical requirements, existing infrastructure, and long-term goals. When selecting a VDI solution, it's vital to consider how it aligns with your organization's overall end user computing (EUC) strategy, which focuses on providing employees secure and seamless access to their digital workspace, regardless of device or location, to maximize productivity.

Compatibility with existing infrastructure

Start by assessing whether the VDI platform integrates smoothly with your current systems—both hardware and software.

  • Ensure support for your hypervisor (e.g., VMware vSphere, Microsoft Hyper-V).
  • Verify compatibility with your identity provider (e.g., Active Directory, Azure AD).
  • Check whether your endpoint devices and network environment meet the performance requirements.

Scalability and flexibility

A good VDI solution should scale easily as your user base grows or your workload changes.

  • Look for dynamic resource allocation to handle fluctuating usage.
  • Ensure support for both persistent and non-persistent desktop models.
  • Consider hybrid deployment options (on-prem + cloud) if flexibility is a priority. And when considering cloud or hybrid deployments for enhanced flexibility, an Azure VDI solution leverages Microsoft's Azure platform to deliver virtual desktops, offering benefits such as pay-as-you-go pricing models and integration with the broader Azure ecosystem.

Cost and licensing models

VDI pricing can vary significantly depending on deployment type and vendor licensing. Understanding total cost of ownership is critical.

  • Compare CapEx vs. OpEx models (e.g., traditional VDI vs. cloud-based DaaS with a Windows 365 subscription).
  • Factor in software licenses (OS, virtualization, access) and support costs.
  • Watch for user-based or device-based licensing differences.

Vendor support and ecosystem

Long-term success with VDI often depends on the strength of vendor support and the surrounding ecosystem.

  • Evaluate vendor SLAs, support tiers, and availability of technical documentation.
  • Check for integration with third-party tools like monitoring, backup, and security platforms.
  • Review the size and activity level of the vendor’s user and partner community.

How does Nerdio assist enterprises with VDI implementation? 

Nerdio assists enterprises in implementing Virtual Desktop Infrastructure (VDI) by providing a comprehensive platform that simplifies deployment, enhances management, and optimizes costs. Through its suite of tools, Nerdio enables organizations to efficiently transition to and maintain scalable, secure virtual desktop environments. 

Simplified deployment and management

Nerdio streamlines the VDI deployment process, reducing the complexity and time traditionally associated with setting up virtual desktops.

  • Utilizes pre-configured templates and automation tools to expedite the creation and deployment of virtual desktops.

     

  • Offers an intuitive interface for managing virtual machines, users, and permissions, simplifying day-to-day administration.

     

  • Facilitates rapid provisioning and decommissioning of desktops, allowing IT teams to respond swiftly to organizational needs.

     

Cost optimization

Nerdio provides features that help organizations manage and reduce the costs associated with VDI implementations.

Cost Optimization Area Traditional VDI (Typical Practice & Cost Impact) Nerdio-Optimized VDI (Feature & Saving*)
Compute right-sizing & auto-scaling Static sizing; admins often over-provision virtual desktops to cover peak demand, paying for idle capacity. Nerdio’s policy-based auto-scaling starts, stops, creates or deletes VMs in real time. Customers typically cut Azure compute and storage spend by 50–70%.
Session-host OS-disk tiering Premium SSD (or similar) disks stay attached 24/7—even while VMs are powered off—incurring full storage charges. Auto-scale dynamically downgrades powered-off OS disks to inexpensive tiers and re-upgrades at boot, delivering up to 75% storage cost savings.
Reserved Instance & Azure Hybrid Benefit utilisation RI sizing is manual; PAYG pricing is common. Hybrid Benefit is frequently under-used, so organisations miss bulk discounts. Nerdio analyses usage patterns and recommends RIs; it tracks coverage and alerts on shortfalls. A 1-year RI typically saves ≈ 40%, a 3-year RI ≈ 60%, and combining a 3-year RI with Azure Hybrid Benefit can reach ≈ 80% vs. PAYG. Learn more.
License right-sizing & analytics Licences (Windows 365, AVD user CALs, etc.) are often assigned manually; unused licences accumulate. Nerdio uses AI-powered licence recommendations and usage analytics in Manager for Enterprise v7 to highlight under-utilised licences and suggest cheaper SKUs—helping avoid unnecessary spend.
*Savings figures based on Nerdio product documentation and Microsoft Azure pricing guidance; actual reductions depend on your workload patterns, VM sizes, and region-specific prices.

Scalability and flexibility

Nerdio's platform is designed to accommodate the evolving needs of enterprises, ensuring that VDI environments can scale effectively.

  • Supports dynamic resource allocation to handle fluctuating usage patterns.

     

  • Allows for seamless scaling of virtual desktops to accommodate growing user bases.

     

  • Provides flexibility to adapt to various organizational structures and requirements.

     

Enhanced security and compliance

Nerdio enhances the security posture of VDI environments and aids in meeting compliance requirements.

  • Centralizes data storage, reducing the risk of data breaches from endpoint devices.

     

  • Simplifies the enforcement of security policies and compliance measures across all virtual desktops.

     

  • Provides tools for monitoring and auditing to support regulatory compliance efforts.

Frequently Asked Questions

Learn more about VDI

About the author

Photo of Carisa Stinger

Carisa Stinger

Head of Product Marketing

Carisa Stringer is the Head of Product Marketing at Nerdio, where she leads the strategy and execution of go-to-market plans for the company’s enterprise and managed service provider solutions. She joined Nerdio in 2025, bringing 20+ years of experience in end user computing, desktops-as-a-service, and Microsoft technologies. Prior to her current role, Carisa held key product marketing positions at Citrix and Anthology, where she contributed to innovative go-to-market initiatives. Her career reflects a strong track record in driving growth and adoption in the enterprise technology sector. Carisa holds a Bachelor of Science in Industrial Engineering from the Georgia Institute of Technology.

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