RDP vs Azure Virtual Desktop: Full Comparison (2026)

Remote Desktop Services (RDS) and Azure Virtual Desktop (AVD) both deliver Windows desktops and applications to remote users—but they take fundamentally different approaches to architecture, management, and cost. RDS is the traditional on-premises solution that has served organizations for decades. AVD is Microsoft’s cloud-native successor, purpose-built for Azure.

Choosing between them—or planning a migration from one to the other—requires understanding the technical differences, licensing implications, cost structures, and operational trade-offs. This guide provides a comprehensive comparison to help you make the right decision for your organization.

What Is Remote Desktop Services (RDS)?

Remote Desktop Services is Microsoft’s on-premises platform for delivering virtual desktops and remote applications. Built on Windows Server, RDS has been the standard enterprise remote access solution since the Terminal Services era.

RDS architecture components:

RD Session Host — Windows Server instances that host user sessions
RD Connection Broker — Routes and reconnects user sessions
RD Web Access — Provides a web portal for launching remote apps and desktops
RD Gateway — Secures connections from external networks using HTTPS
RD Licensing — Manages Remote Desktop Client Access Licenses (RDS CALs)
RD Virtualization Host — Supports VDI-based personal desktop deployments

RDS operates on your own hardware—whether in a physical data center, a private cloud, or hosted infrastructure. Your IT team manages every layer: hardware, operating system, networking, security, updates, and capacity planning.

What Is Azure Virtual Desktop (AVD)?

Azure Virtual Desktop is a cloud-native desktop and application virtualization service running on Microsoft Azure. It delivers both multi-session Windows 11 desktops and full VDI personal desktops from Azure infrastructure.

AVD architecture components:

Host Pools — Collections of Azure VMs that serve as session hosts
Session Hosts — Azure VMs running Windows 10/11 multi-session or Windows 11 Enterprise
Workspaces — Logical groupings of application groups presented to users
Application Groups — Define whether users receive a full desktop or individual RemoteApp applications
AVD Control Plane — Microsoft-managed infrastructure handling connection brokering, web access, gateway, and diagnostics

The critical difference: Microsoft manages the control plane (brokering, gateway, web access, diagnostics) as a PaaS service. You manage only the session host VMs and their configurations. This eliminates significant infrastructure overhead compared to RDS.

RDS vs AVD: Comparison Table

Feature	Remote Desktop Services (RDS)	Azure Virtual Desktop (AVD)
Deployment Model	On-premises / hosted	Azure cloud
Control Plane	Self-managed (Connection Broker, Gateway, Web Access)	Microsoft-managed PaaS
Operating System	Windows Server (multi-session)	Windows 10/11 multi-session, Windows 11 Enterprise, Windows Server
Multi-Session Windows	Windows Server only	Windows 10/11 Enterprise multi-session (unique to AVD)
Licensing	RDS CALs + Windows Server licenses	Microsoft 365 / per-user access rights (no RDS CALs needed)
Infrastructure	Customer-owned hardware	Azure VMs (pay-as-you-go or reserved)
Scaling	Manual — purchase and provision hardware	Autoscaling — scale session hosts based on demand
Profile Management	Roaming profiles, UPDs, or third-party (FSLogix)	FSLogix (included with AVD at no additional cost)
High Availability	Customer-designed (clustering, load balancing)	Built-in across Azure availability zones
Updates	Customer-managed (Windows Server patching)	Customer-managed VMs with Azure Update Manager
Monitoring	Custom (SCOM, third-party)	Azure Monitor, AVD Insights (built-in)
Security	Network-level (firewalls, VPN, RD Gateway)	Microsoft Entra ID, Conditional Access, Private Link, RDP Shortpath
Typical Use Cases	On-premises workforce, data sovereignty, existing hardware	Remote/hybrid workforce, BYOD, burst capacity, global access

Architecture Deep Dive

RDS Architecture

In a traditional RDS deployment, every component runs on infrastructure you own and manage:

Users → RD Gateway → RD Connection Broker → RD Session Hosts
                            ↓
                     RD Web Access (portal)
                            ↓
                     RD Licensing Server

You are responsible for:

Procuring and maintaining server hardware
Configuring high availability for each role (broker, gateway, web access)
Managing SSL certificates for RD Gateway
Sizing capacity based on projected user counts
Patching Windows Server on all role servers
Configuring and maintaining load balancers
Managing backup and disaster recovery

This architecture works well when you have existing data center capacity, dedicated infrastructure teams, and a stable, predictable user base.

AVD Architecture

AVD separates the management plane from the data plane:

Users → AVD Gateway (Microsoft-managed) → Session Hosts (customer VMs in Azure)
              ↓
       AVD Broker (Microsoft-managed)
              ↓
       AVD Web Access (Microsoft-managed)
              ↓
       AVD Diagnostics (Microsoft-managed)

Microsoft manages:

Connection brokering and load balancing
Gateway services and global points of presence
Web client and RemoteApp feed
Diagnostics and monitoring infrastructure
Service availability and updates

You manage:

Session host VMs (size, OS, configuration, updates)
User profiles (FSLogix configuration)
Application installation and updates
Network configuration (VNet, NSGs, connectivity to on-premises)
Identity (Microsoft Entra ID or hybrid identity)

This split dramatically reduces operational overhead while giving you full control over the user experience and application layer.

Multi-Session vs Single-Session

One of AVD’s most significant advantages is Windows 10/11 Enterprise multi-session—a capability exclusive to Azure Virtual Desktop.

RDS Multi-Session: Windows Server Only

In RDS, multi-session hosting requires Windows Server as the operating system. Users share a Windows Server instance, which means:

Some desktop applications behave differently or are unsupported on Server OS
The user experience differs from a standard Windows desktop
Application compatibility testing must account for Server OS behavior
Users notice they are working on a server, not a desktop

AVD Multi-Session: Windows 10/11 Desktop Experience

AVD introduced Windows 10/11 Enterprise multi-session, allowing multiple users to share a single Windows desktop OS instance. This provides:

Identical experience to a physical Windows desktop — users cannot tell the difference
Better application compatibility — apps designed for Windows 10/11 run as expected
Microsoft 365 Apps optimization — fully supported multi-session deployment
Cost efficiency — multiple users per VM without per-user VDI cost

This capability alone is a primary driver for AVD adoption. It combines the cost efficiency of shared sessions with the user experience of a personal desktop.

Single-Session (Personal Desktops)

Both RDS (through RD Virtualization Host) and AVD support single-session personal desktops where each user gets a dedicated VM. This model is used for:

Power users who need dedicated resources (developers, engineers, data analysts)
Applications that cannot run in multi-session (GPU-intensive workloads, legacy apps)
Users who require persistent customization of their environment

AVD simplifies personal desktop management with features like Start VM on Connect (VMs start only when users connect) and autoscale policies that deallocate idle personal desktops.

Security Comparison

RDS Security

RDS security depends on your implementation:

RD Gateway encrypts connections using TLS over HTTPS
Network Level Authentication (NLA) requires authentication before session creation
Network security relies on firewalls, VPN, and network segmentation
MFA requires third-party integration or NPS extension
No native conditional access — access control is network-based

RDS environments are attractive targets because they expose RDP-based services. Misconfigured RD Gateway or directly exposed RDP ports are common attack vectors.

AVD Security

AVD provides multiple security layers:

Reverse connect transport — Session hosts never accept inbound connections; they connect outbound to the AVD service, eliminating exposed RDP ports
Microsoft Entra ID integration — Native identity provider with MFA and passwordless authentication
Conditional Access — Enforce device compliance, location restrictions, risk-based policies, and session controls before granting access
Private Link — Keep AVD traffic entirely on the Microsoft backbone network
RDP Shortpath — Direct UDP-based connection for improved performance with managed networks
Screen capture protection — Prevent screenshots and screen sharing of AVD sessions
Watermarking — Overlay user identification on session displays for data loss prevention
Microsoft Defender for Endpoint integration for session host protection

AVD’s security model is significantly stronger than RDS out of the box, particularly for organizations implementing zero-trust architecture.

Cost Comparison

RDS Costs

RDS costs are primarily capital expenditure (CapEx):

Server hardware — Physical servers or hypervisor hosts for session hosts and infrastructure roles
Windows Server licenses — Per-core licensing for each server
RDS CALs — Per-user or per-device Client Access Licenses ($120-160 per user)
SQL Server — For Connection Broker high availability
Networking — Load balancers, firewalls, SSL certificates
Storage — SAN or local storage for user profiles and session hosts
Data center — Power, cooling, rack space
Operations — Staff time for management, patching, troubleshooting

RDS costs are predictable but require significant upfront investment. Scaling requires hardware procurement with lead times of weeks to months.

AVD Costs

AVD costs are primarily operational expenditure (OpEx):

Azure VM compute — Pay for session host VMs (per-minute billing, reserved instances available for 1-3 year commitments at 40-60% savings)
Azure storage — Managed disks for session hosts, Azure Files or Azure NetApp Files for FSLogix profiles
Networking — VNet, bandwidth, ExpressRoute or VPN Gateway for hybrid connectivity
Licensing — Included with Microsoft 365 E3/E5, Microsoft 365 Business Premium, or Windows E3/E5 per-user licenses (no additional RDS CALs)
AVD control plane — Free (Microsoft absorbs this cost)

Cost optimization strategies for AVD:

Autoscaling — Automatically scale session hosts based on user demand, shutting down VMs during off-hours
Start VM on Connect — Personal desktop VMs start only when users log in
Reserved Instances — Commit to 1-3 year terms for baseline capacity at significant discounts
Spot VMs — Use spot pricing for non-critical burst capacity
Right-sizing — Monitor resource utilization and adjust VM sizes accordingly

For organizations with variable workloads or distributed teams across time zones, AVD’s consumption-based model typically costs less than maintaining idle RDS capacity.

User Experience

RDS User Experience

Connects via Remote Desktop Client or web browser
Windows Server desktop environment (unless using VDI)
Profile persistence through roaming profiles or User Profile Disks
Performance depends on network quality to on-premises data center
Printing redirection through RDS printer redirection

AVD User Experience

Connects via Windows, macOS, iOS, Android, or web client
Windows 10/11 desktop experience with multi-session
FSLogix profile containers provide fast, reliable profile management
Global presence — Azure regions worldwide reduce latency for distributed teams
Multimedia redirection — Offloads video rendering to the client for smoother playback
Teams optimization — Native media optimization for Microsoft Teams audio/video
Universal Print integration for cloud-based printing

AVD generally delivers a superior user experience, particularly for distributed workforces, thanks to Windows desktop OS, Teams optimization, and Azure’s global network.

When to Choose RDS

RDS remains the right choice when:

You have existing hardware investments with years of useful life remaining
Data sovereignty requirements mandate that all infrastructure stays on-premises or in a specific facility you control
Your workforce is primarily on-site connecting over the local network
You operate in air-gapped or restricted networks without reliable Azure connectivity
Your organization has deep RDS expertise and the infrastructure is stable and well-managed
Regulatory requirements explicitly require on-premises infrastructure

For organizations already running well-functioning RDS environments with no immediate pressure to change, a forced migration to AVD may not be justified—especially if the current solution meets user and business requirements.

When to Choose AVD

AVD is the better choice when:

Your workforce is remote or hybrid and needs access from anywhere
You support BYOD and need to deliver desktops to unmanaged devices
Demand is variable and you need to scale up or down dynamically
You want to eliminate infrastructure management for the desktop delivery platform
You need Windows 10/11 multi-session for desktop app compatibility and user experience
Security requirements call for conditional access, zero-trust, and modern identity
You are deploying new rather than replacing an existing RDS investment
Microsoft 365 licensing already includes AVD entitlements

For most organizations building a new desktop virtualization solution in 2026, AVD is the recommended starting point. The cloud-native architecture, included licensing, and Microsoft’s ongoing investment make it the strategic platform going forward.

Migrating from RDS to AVD

For organizations ready to transition from RDS to AVD, the following migration path minimizes disruption.

Phase 1: Assessment (2-4 weeks)

Inventory current RDS environment: session hosts, user counts, applications, profiles, performance baselines
Identify application dependencies and compatibility considerations
Assess network connectivity to Azure (bandwidth, latency, ExpressRoute requirements)
Calculate Azure VM sizing based on current resource utilization
Estimate costs using the Azure Pricing Calculator

Phase 2: Azure Foundation (2-4 weeks)

Deploy Azure networking (VNet, subnets, NSGs, connectivity to on-premises)
Configure Microsoft Entra ID and hybrid identity if needed
Set up Azure Files or Azure NetApp Files for FSLogix profile storage
Configure monitoring with Azure Monitor and AVD Insights
Establish your AVD environment with host pools, workspaces, and application groups

Phase 3: Pilot (4-6 weeks)

Deploy pilot host pool with representative VM sizes
Migrate a small group of users (10-25) to AVD
Install and test all required applications
Configure FSLogix profiles and validate profile performance
Test printing, peripheral redirection, and multimedia performance
Gather user feedback and address issues
Validate security controls: conditional access, MFA, compliance policies

Phase 4: Production Migration (4-8 weeks)

Scale host pools to production capacity
Migrate users in waves, starting with the least complex user groups
Configure autoscaling based on observed usage patterns
Migrate FSLogix profiles from RDS to Azure storage
Update DNS, documentation, and support procedures
Train help desk and IT staff on AVD administration

Phase 5: Decommission RDS (2-4 weeks)

Verify all users are successfully operating on AVD
Monitor for any users still connecting to RDS
Remove RDS session hosts, infrastructure roles, and licensing
Reclaim or repurpose on-premises hardware
Update disaster recovery and business continuity plans

Comparing RDS to AVD: The VDI Advantage

Both RDS and AVD offer significant advantages over distributing physical machines to every user—centralized management, improved security, simplified application deployment, and reduced endpoint hardware costs. The question is not whether to virtualize, but which platform best fits your environment.

For organizations that have already recognized the benefits of virtual desktops, AVD represents the natural evolution: the same core benefits of VDI with cloud scalability, reduced infrastructure, and modern security.

FAQ

Is Azure Virtual Desktop more expensive than RDS? It depends on your usage patterns. For organizations with consistent, predictable demand and existing hardware, RDS may have lower ongoing costs. For organizations with variable demand, remote workers, or upcoming hardware refresh cycles, AVD often costs less when you account for autoscaling, eliminated infrastructure, and included licensing with Microsoft 365. Conduct a total cost of ownership analysis that includes hardware lifecycle, staffing, licensing, and operational costs.

Can I run RDS and AVD simultaneously during migration? Yes. Running both platforms in parallel is the recommended migration approach. Users can be migrated in waves while maintaining access to the existing RDS environment as a fallback. Both platforms can coexist with the same identity infrastructure and applications.

Does AVD support GPU workloads? Yes. Azure offers GPU-enabled VM sizes (NV-series, NC-series) for AVD session hosts. These VMs support GPU-accelerated rendering for applications like AutoCAD, Revit, and 3D visualization. GPU optimization is configured through AVD host pool settings and session host GPU drivers.

What bandwidth does AVD require per user? Microsoft recommends a minimum of 1.5 Mbps per user for standard office workloads. For optimal experience, 5-10 Mbps per user is recommended. Video-heavy workloads, CAD applications, and multi-monitor configurations require higher bandwidth. RDP Shortpath and multimedia redirection can significantly reduce bandwidth requirements for specific scenarios.

Can I use AVD without Microsoft 365 licensing? Yes, but you will need Windows per-user access pricing, which is available as a standalone AVD entitlement. However, most organizations adopting AVD already have Microsoft 365 E3/E5 or Business Premium licenses, which include AVD rights at no additional cost. This bundled licensing is one of AVD’s strongest cost advantages.

What happens to my FSLogix profiles if Azure has an outage? FSLogix profiles stored on Azure Files or Azure NetApp Files benefit from Azure’s built-in redundancy (LRS, ZRS, or GRS depending on your configuration). In the event of a regional outage, geo-redundant storage provides failover capability. For business-critical environments, deploy session hosts and profile storage across multiple Azure regions with AVD’s multi-region support.

Is RDS end of life? Microsoft has not announced an end-of-life for Remote Desktop Services. Windows Server 2025 includes RDS capabilities. However, Microsoft’s strategic investment is clearly focused on Azure Virtual Desktop. Organizations should factor this long-term direction into their planning, even if RDS remains supported for years to come.

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