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Quick Answer
Azure Virtual Desktop
Azure Virtual Desktop is the cloud successor to an RDS farm. Microsoft runs the broker, gateway, web access and diagnostics, and session hosts run as Azure VMs or, on-premises, on Azure Local. Session hosts can run Windows 11 or 10 Enterprise multi-session, licensed through Microsoft 365, Windows Enterprise or VDA, or Windows Server with RDS CALs and Software Assurance. Compute is billed by consumption, so autoscaling and reservations decide the cost. A management platform such as Atlas AVD can automate images, scaling and profiles.
On-Premises RDS
On-premises Remote Desktop Services is the Windows Server role set that has published desktops and apps for decades: RD Session Host, Connection Broker, Gateway, Web Access, Licensing and Virtualization Host. You run every role, on your own servers and hypervisor, with no cloud dependency. Each user or device needs an RDS CAL at the same version as the session host or later, and session hosts run Windows Server, because Windows Enterprise multi-session isn't licensed outside AVD. It's paid for up front and known to most Windows teams.
Feature Comparison
| Feature | Azure Virtual Desktop | On-Premises RDS |
|---|---|---|
| Roles you run | Session hosts only; Microsoft runs the broker, gateway, web access and diagnostics | RD Session Host, Connection Broker, Gateway, Web Access and Licensing, made highly available yourself |
| Session host OS | Windows 11 or 10 Enterprise multi-session, or Windows Server | Windows Server only for multi-user sessions |
| User licensing | Included with eligible Microsoft 365, Windows Enterprise or VDA; Windows Server hosts need RDS CALs with Software Assurance or RDS subscription licenses | RDS CALs per user or per device, at the session host's version or later |
| Cost model | Azure consumption; reservations and savings plans for steady capacity | Capital cost for servers, storage and hypervisor; existing hardware has no hourly cost |
| Works without internet or cloud | No: the control plane is in Azure, including for Azure Local session hosts | Yes: fully self-contained in your network |
| External access | Reverse connect: no inbound ports on session hosts | RD Gateway published to the internet, which you patch and protect |
| Conditional Access and MFA | Native Entra ID Conditional Access and MFA on the sign-in | Through RD Gateway with an NPS extension or a third-party MFA product |
| Scaling | Scaling plans power hosts on and off by schedule and load | Fixed farm capacity sized for peak |
| Data location | Azure regions you choose, or on-premises with Azure Local | Your own data center |
| Profiles | FSLogix profile containers on Azure Files or Azure NetApp Files | FSLogix or user profile disks on your file servers |
| Clients | Windows App on Windows, macOS, iOS, Android and the web | Remote Desktop Connection and the RD Web client |
| Support lifecycle | A continuously updated service | Tied to Windows Server: 2016 extended support ends 13 January 2027, 2019 on 10 January 2029 |
Comparison reflects publicly documented capabilities and each vendor's own positioning as of 2026-11-09. Vendors change their products and pricing; confirm current details directly, or contact us for a side-by-side on your environment.
Who Each Platform Is Best For
Azure Virtual Desktop is best for
- RDS farms reaching a hardware refresh or the end of Windows Server 2016 or 2019 support
- Organizations that want to stop running Connection Brokers, Gateways and license servers
- Users who would benefit from a Windows 11 desktop rather than Windows Server
- Teams that want Entra ID Conditional Access and no internet-facing gateway
On-premises RDS is best for
- Sites that must run disconnected from the internet or any cloud control plane
- Organizations that have recently bought server hardware and want to use it out
- Apps that need very low latency to on-premises systems that can't move
- Small, stable farms where the team already knows RDS well and the costs are sunk
Key Differences Explained
The Roles You Stop Running
An on-premises RDS deployment has six roles: RD Session Host, where users work; RD Connection Broker, which load balances and reconnects sessions; RD Gateway, which carries external connections over HTTPS; RD Web Access and the web client; RD Licensing, which issues CALs; and RD Virtualization Host for VDI. For high availability you run more than one of most of them, and Connection Broker needs SQL Server, since the Windows Internal Database it can use is deprecated. With Azure Virtual Desktop, Microsoft runs the brokering, gateway, web access and diagnostics as a service. You keep the session hosts, images and profiles, and session hosts connect outbound, so there's no gateway to publish to the internet.
Windows 11 Multi-Session Is AVD-Only
Microsoft doesn't allow Windows Enterprise multi-session in production outside the Azure Virtual Desktop service, and it won't activate against an on-premises KMS. On-premises RDS therefore uses Windows Server for session hosts, which works but gives users a server OS with its own app compatibility and look. On AVD, pooled host pools can run Windows 11 Enterprise multi-session, in Azure or on Azure Local, so users get the same client OS they have on a laptop. Microsoft's newer AVD Hybrid option, which runs session hosts on other hypervisors through Azure Arc, doesn't support multi-session.
Licensing: RDS CALs vs AVD Access Rights
On-premises, every user or device needs an RDS CAL, and CALs from an earlier Windows Server version can't access a later one, so moving session hosts to Windows Server 2025 means buying Windows Server 2025 RDS CALs. On AVD, Windows 11 and 10 Enterprise session hosts are covered by Microsoft 365 E3, E5, A3, A5, F3 or Business Premium, Windows Enterprise E3 or E5, Windows Education A3 or A5, or Windows VDA per user, licenses many organizations already own. Windows Server session hosts on AVD still need RDS CALs with Software Assurance or RDS user subscription licenses. Check your agreement before you assume either side is free.
Staying On-Premises: Azure Local and AVD Hybrid
Moving to AVD doesn't have to mean moving to an Azure region. AVD on Azure Local keeps host pools, workspaces and application groups in Azure while session hosts run on Azure Local hardware in your data center, including Windows 11 multi-session. You pay an AVD for Azure Local service fee per active vCPU and the Azure Local service fee, plus the same user licenses as AVD in Azure, and it needs a connection to Azure. A host pool can't mix Azure and Azure Local hosts. If you need a desktop service that keeps working with no cloud connection at all, on-premises RDS is still the option that does.
Cost: Capital Hardware vs Consumption
An RDS farm is paid for up front: servers, storage, hypervisor licensing, Windows Server licenses and CALs, then power, cooling and staff time, sized for the busiest hour. AVD in Azure is billed by consumption, so the cost depends on how well you scale hosts down outside working hours and how much steady capacity you cover with reservations or savings plans. Existing hardware with years of life left can make on-premises RDS the cheaper option for now; a refresh is usually the moment the comparison flips. Model your own numbers: the Atlas AVD cost calculator covers the Azure side.
Moving an RDS Farm to Azure Virtual Desktop
An RDS to AVD move is a rebuild of the session hosts, not a lift and shift of the farm: the broker, gateway, web and licensing roles are replaced by the AVD service. These steps are the checklist.
Inventory collections and apps
List every session collection, its published apps or desktops, real peak concurrency, and the users and groups assigned to it.
Choose the session host OS
Windows 11 Enterprise multi-session for most desktops; keep Windows Server where an app requires it, with RDS CALs and Software Assurance.
Plan networking and identity
Connectivity to on-premises apps over VPN or ExpressRoute, DNS, and AD DS, hybrid or Entra ID join for session hosts.
Move profiles to FSLogix
Create fresh FSLogix profile containers on Azure Files or Azure NetApp Files, with documents moved through OneDrive Known Folder Move.
Build and test images
Install and test every app on a new image, including licensing tied to hostnames, printers and peripherals.
Pilot, then move in waves
Start with IT and one department, keep the RDS farm as the fallback, then retire collections once each wave signs off.
No tool converts an RDS farm into AVD session hosts without rebuilding them. Atlas AVD automates building and running the AVD side, and Atlas AVD consulting can help plan the move.
Pros and Cons
Azure Virtual Desktop
Pros
- No Connection Broker, Gateway, Web Access or license servers to run
- Windows 11 Enterprise multi-session for pooled desktops
- Access rights included with eligible Microsoft 365 and Windows licenses
- No internet-facing gateway, and native Conditional Access
Cons
- Needs a connection to Azure, even with session hosts on Azure Local
- Consumption costs that need active scaling to stay low
- Session hosts must be rebuilt, not moved
On-Premises RDS
Pros
- Runs fully disconnected from the internet and any cloud
- Uses hardware and licenses you've already paid for
- Data and sessions stay in your own data center
- A long-established role set most Windows teams know
Cons
- Every RDS role to patch, scale and make highly available
- Session hosts run Windows Server, not Windows 11 multi-session
- An RD Gateway exposed to the internet for remote users
- Capacity sized for peak, with support tied to Windows Server lifecycles
Frequently Asked Questions
What is the difference between Azure Virtual Desktop and Remote Desktop Services?
Remote Desktop Services is the Windows Server role set you install and run yourself: Session Host, Connection Broker, Gateway, Web Access and Licensing. Azure Virtual Desktop is a Microsoft-run service that replaces the broker, gateway and web roles, runs session hosts in Azure or on Azure Local, and adds Windows 11 Enterprise multi-session.
Can I run Windows 11 multi-session on on-premises RDS?
No. Microsoft doesn't allow Windows Enterprise multi-session in production outside the Azure Virtual Desktop service, and it won't activate against an on-premises KMS. To run it on your own hardware, use AVD on Azure Local.
Do I still need RDS CALs with Azure Virtual Desktop?
Only for Windows Server session hosts, which need RDS CALs with Software Assurance or RDS user subscription licenses. Windows 11 and 10 Enterprise session hosts are covered by eligible licenses such as Microsoft 365 E3, E5 or Business Premium, Windows Enterprise E3 or E5, or Windows VDA per user.
Is Remote Desktop Services being retired?
No. The RDS roles ship in Windows Server 2025, which has extended support until November 2034, though the Windows Internal Database used by Connection Broker is deprecated in favor of SQL Server. What does end is support for older Windows Server versions: Windows Server 2016 extended support ends on 13 January 2027.
Can I keep my desktops on-premises with Azure Virtual Desktop?
Yes, with AVD on Azure Local: session hosts run on Azure Local hardware in your data center while host pools and the control plane stay in Azure. It needs a connection to Azure and is billed per active vCPU on top of the Azure Local service fee.
Is Azure Virtual Desktop cheaper than on-premises RDS?
It depends on your hardware's age and how you scale. Existing hardware with years of life can make RDS cheaper for now. At a refresh, AVD often wins once you count the RDS roles you stop running, Windows 11 multi-session density and hosts scaled down outside working hours. Model both with your own numbers.
Does Atlas AVD migrate RDS farms automatically?
No. No tool converts an RDS farm into AVD session hosts without rebuilding them. Atlas AVD automates building and running the AVD side: golden images, host pools, autoscaling, FSLogix and app catalogs.
Microsoft documentation referenced
- Microsoft Learn: Remote Desktop Services roles
- Microsoft Learn: RDS client access licenses
- Microsoft Learn: Removed and deprecated features in Windows Server
- Microsoft Learn: Windows Enterprise multi-session FAQ
- Microsoft Learn: Licensing Azure Virtual Desktop
- Microsoft Learn: Azure Virtual Desktop on Azure Local
- Microsoft Learn: Azure Virtual Desktop Hybrid
- Microsoft Learn: Windows Server 2016 lifecycle
- Microsoft Learn: Windows Server 2019 lifecycle
- Microsoft Learn: Windows Server 2025 lifecycle