Microsoft Azure Virtual Desktop (AVD) allows businesses to create a flexible, scalable remote work environment. While Azure Desktop offers substantial benefits, understanding its pricing can be complex. This guide breaks down Azure Desktop pricing factors, and provides an example of a basic desktop setup for clearer cost insights.

Key Factors in Azure Desktop Pricing

​Azure Desktop pricing is impacted by several primary factors:

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1. Virtual Machine (VM) Costs

At the core of Azure Desktop is the virtual machine, which provides computing power, memory, and, if necessary, GPU resources. Pricing for VMs is based on:

• Type (e.g., General-purpose, Memory-optimized, or GPU)

• Size (e.g., Standard_D2s_v3, with 2 vCPUs and 8 GB of RAM)

• Region (pricing may vary depending on the Azure region)

• Billing Plan (pay-as-you-go, reserved instances for 1 or 3 years)

Each VM size aligns with different workload needs. For instance, general-purpose VMs work well for standard productivity applications like Microsoft Office, while more memory-intensive applications may require Memory-optimized VMs.

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2. Storage Costs

Azure provides storage for user data, applications, and operating system disks. Storage options include:

• Premium SSD: High-speed, low-latency storage, recommended for high-performance applications

• Standard SSD: Balanced price and performance, suitable for general workloads

• Standard HDD: Cost-effective storage for lower performance requirements, such as archived data

For example, a 128 GB Standard SSD for a virtual desktop’s OS disk typically costs a few dollars per month. Storage pricing can also depend on data redundancy options (locally redundant, zone redundant, or geo-redundant storage) and the type of storage chosen.

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3. Licensing Costs

Azure Virtual Desktop requires Windows licenses. Depending on your organization's current Microsoft 365 or Windows 10 Enterprise subscriptions, you may be able to reduce costs by leveraging existing licenses. If eligible, you can avoid paying extra for Windows licenses as part of Azure Desktop pricing.

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4. Bandwidth Costs

Data transfer is another factor in Azure Desktop pricing. Azure generally does not charge for inbound data transfers, but outbound data (data sent from Azure to the internet or other regions) may incur fees. Monitoring your organization’s data transfer needs can help you keep bandwidth costs within budget.

 

Azure Desktop Pricing Models

Azure Desktop offers two primary pricing models to suit different use cases:

• Pay-as-You-Go: Charges for resources as they’re used, ideal for seasonal or flexible workloads. For continuous usage, however, it may be more costly.

• Reserved Instance Pricing: Provides discounts for committing to one- or three-year terms, best for consistent workloads. This model can save up to 72% compared to pay-as-you-go.

 

Cost Optimization Tips for Azure Desktop Pricing

1. Select the Right VM Size and Region: Choosing the appropriate VM size (e.g., Standard_D2s_v3) and selecting an Azure region with lower pricing can prevent overspending.

2. Use Auto-Scaling: Set up scaling options to add or remove resources based on demand, avoiding unnecessary costs.

3. Monitor with Azure Cost Management: Gain insights into usage patterns and make adjustments to reduce excess spending.

4. Consider Reserved Instances: For long-term use, reserved instances can provide significant cost savings.

5. Optimize Storage: Use storage types that match workload needs; for example, Premium SSD for critical apps, and Standard HDD for less critical data.

 

Example: Cost of a Basic Azure Virtual Desktop Setup

Let’s go through a simple example for setting up a basic Azure Desktop instance to understand the potential costs:

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Scenario: Small Business Desktop Setup

• Use Case: Standard productivity tasks (e.g., Microsoft Office, web browsing)

• VM Type: General-purpose VM (Standard_D2s_v3) with 2 vCPUs and 8 GB RAM

• Storage: 128 GB Standard SSD for the OS disk

• Region: East US

• Licensing: Utilizing existing Microsoft 365 licenses (no additional Windows license cost)

• Bandwidth: Minimal outbound data usage, as applications are primarily web-based

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Estimated Monthly Cost Breakdown

1. VM Cost (Standard_D2s_v3)

   • Approximate cost: $100/month with pay-as-you-go, or $60/month with a 1-year reserved instance.

2. Storage (128 GB Standard SSD)

   • Approximate cost: $5/month.

3. Bandwidth

   • Minimal outbound data transfer: likely negligible for this setup (typically $0.087/GB for outbound data).

4. Additional Costs

   • Monitoring, network charges, and support options may add to costs but are minimal for basic setups.

Total Monthly Cost Estimate:

• Pay-as-you-go: approximately $105/month.

• 1-year reserved instance: approximately $65/month.

This basic configuration demonstrates that an Azure Desktop setup can be quite cost-effective for standard business applications, especially when using reserved instances and leveraging existing licenses. For organizations scaling up or needing advanced configurations (e.g., GPU-intensive applications), prices will increase accordingly, but the flexibility of Azure Desktop’s pricing options makes it easy to scale based on demand.

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