Why Businesses Are Choosing Azure Virtual Desktop Over Citrix in 2025

Introduction

With hybrid and remote work now the norm, the demand for scalable, secure and flexible desktop solutions continues to grow. Whether it's enabling remote teams, streamlining management, or cutting infrastructure costs, virtual desktops are more relevant than ever.

Over the past few years, I've spoken to customers, evaluated licensing models and worked through real-world Azure Virtual Desktop (AVD) deployments. I've kept an eye on how the Citrix product has evolved, particularly the commercial models and how it's positioning itself alongside Microsoft, and their ecosystem.

Having worked across multiple Citrix generations, from XenApp 6.5 with the old-school AppCenter to modern builds with Machine Creation Services; I've seen how the platform has matured. It's been a fascinating evolution, but one that now faces significant competition.

The Changing Landscape of Virtual Desktops

Citrix has been the leader in virtual desktop infrastructure for a long time. It's trusted, reliable and offers strong performance, especially in complex enterprise environments. But over the last few years, Citrix has gone through a lot of changes. Its licensing has become more complicated, and many customers feel that it is harder to predict costs.

With changes in ownership and direction, there is some uncertainty about where the platform is heading, which has led to some businesses to start looking at alternatives.

At the same time, Microsoft has invested heavily in Azure Virtual Desktop. AVD integrates directly with Microsoft 365, is built on Azure and offers flexible pricing options. For businesses already using Microsoft services, it often makes sense to consider AVD first.

AVD is designed to be simple to manage, secure and easy to scale, especially for hybrid and remote teams. The native integration with Microsoft tools is a big selling point, and many customers find the overall cost easier to control.

We're now starting to see a shift. Not because Citrix isn't capable, but because businesses want solutions that are easier to license, manage, and that align with their cloud strategy. For many businesses, AVD feels like the natural step, especially when Microsoft is usually already a big part of the IT environment.

Citrix Licensing: What You're Getting

Note, I'm not a Citrix expert, and licensing changes quicker than the British weather - so please cut me some slack if things change when you read this!

Citrix has long been a leader in virtual desktop infrastructure, offering robust solutions for usually enterprises. However, recent shifts in their licensing models have introduced complexities that your customers must navigate carefully.

• Licensing is user-based, with no smaller tiers or bespoke options.
• Universal Hybrid Multi-Cloud includes nearly every Citrix feature from DaaS, Virtual Apps to NetScaler and Endpoint Management.
• Citrix Platform offers a similar stack to the above, but is more focused on the broader Citrix infrastructure.
• Citrix for Private Cloud is a scaled-back option for on-premises VDI setups.
• NetScaler licensing is still sold separately if your customers need additional capacity than what is included within a bundle.
• No SMB-tier or Simplified Pricing meaning packages are heavily enterprise-focused, high-complexity and include broad entitlements whether you need them or not.

That's why I've created this post - I work closely with SMBs, and non-profit organisations, and the lack of those options from such a historical leader in virtual desktop is quite astounding.

The Rise of Azure Virtual Desktop

Azure Virtual Desktop has moved from "interesting new service" to default first choice for many IT teams, especially those already invested in Microsoft 365.

And, VDI isn't going anywhere. Look at Nerdio who recently received $500m worth of private equity investment.

• Licensing Leverage meaning that if your customers are using Microsoft 365 E3/E5, Business Premium or similar, you already hold the rights to run multi-session Windows on Azure Virtual Desktop.
• Native Microsoft 365 Integration leading to simplified management through Intune, Teams optimisations and arguably more secure.
• Discounted Costs using Savings Plans, auto-scale, auto-shutdown, or Reserved Instances (I plan to cover how these features can be used in future blog posts!)

Microsoft runs the broker, gateway and diagnostics as a SaaS service. You manage the session hosts and policies, and using AVD can:

1. Reduce Operational Overhead - no controller cluster or licensing servers to patch.
2. Improve Security Posture - with access typically through Entra ID Conditional Access, and the potential use of various Defender options.
3. Speed Up Deployment - spin up a PoC and be demonstrating to customers in minutes, using Quickstart for AVD.

AVD is evolving quickly, with support for specific graphics-intensive servers, previews of new operating systems and specific remote application options.

Microsoft are looking to close feature gaps, whilst maintaining clear, predictable pricing. For businesses already invested in Microsoft 365, AVD offers a low-friction, high-impact route to modern virtual desktops.

Price Check: AVD vs. Citrix

When evaluating virtual desktop solutions, for SMBs and non-profits, cost can become the deciding factor. One of the biggest challenges for customers is understanding the true cost of virtual desktops; especially when comparing AVD, Citrix Desktop-as-a-Service (DaaS) or on-premises Citrix environments.

Let's illustrate a real-world example based on a 10-user setup for standard admin/office workloads. The VM spec is 8 vCPU, 64 GB Memory, premium storage, FSLogix and a 1-Year Azure Savings Plan.

Cost Comparison (Per User / Per Month)

Whilst Citrix can still offer value, especially for enterprises with legacy application needs, hybrid environments or compliance requirements; for SMBs, it's AVD that is winning. Simplified management, cost-efficiency and native Microsoft 365 integration being the key drivers.

Pricing is estimated on known licensing models, and exact costs may vary based on specific Citrix agreements and/or regional factors.

The Native Advantage: Microsoft 365 & Azure Virtual Desktop

When you or your customers adopt AVD, you're not just spinning up a Remote Desktop. You're integrating directly into the Microsoft 365 ecosystem and that is where the value kicks in. Identity, security, apps and management, natively integrated.

Identity & Access Management - Entra ID handles user identities with native integration, enabling single sign-on and enforcing Conditional Access policies with no extra configuration. You can also go the extra mile and use Entra Domain Services; if you're still supporting legacy apps.

Security & Compliance - Built-in support for Defender for Endpoint, and the ability to use Purview and benchmark against the Secure Score provides additional visibility into security and compliance.

Office & Productivity - Microsoft 365 Apps are optimised for AVD (with a few tweaks!). Whether that's Teams media redirection, Outlook cache optimisation or specific OneDrive configuration for efficient roaming profiles.

Licensing Alignment - AVD rights are included in Microsoft 365 Business Premium, E3, and E5. Most SMBs already have this, so there’s no extra licensing costs unlike Citrix, which adds per-user licensing on top.

Management & Policy Control - Microsoft Intune can manage session host policies and app deployments, although for cleaner app management, I’d recommend using a golden image or app attach.

Day-to-Day Access: AVD vs. Citrix

Accessing Virtual Desktops: What the User Sees

When assessing virtual desktop platforms, it's important to consider how users access their environment. Both AVD and Citrix supports a wide range of devices, including Windows PCs, macOS, iOS/iPadOS, Android, Chrome OS and most modern browsers.

Azure Virtual Desktop (AVD)

Users authenticate via Entra ID, typically using their Microsoft 365 credentials. This means organisations can apply Conditional Access and MFA sign-in options from the outset.

Once authenticated, users launch their sessions from the Remote Desktop Client (soon to be Windows App) or through a browser-based version.

Citrix

Citrix offers a similar access experience via the Citrix Workspace App, available on most platforms. Depending on how it is configured, users may authenticate against Active Directory or Entra ID, with optional support for Citrix Gateway for remote access.

Summary

For the most part, the login process is pretty seamless on both platforms. Both offerings provide a single application to access the virtual desktop; whereas AVD leans as expected into Entra ID and native Microsoft integrations.

Real-World Migration: From Citrix to Azure

Back in 2022, a multi-site UK-based recruitment firm completed a full migration from Citrix to Azure Virtual Desktop (AVD) as part of a broader infrastructure modernisation programme.

Without an internal IT team, the business needed a fully managed platform that would offer stronger performance, improved user experience, and greater scalability. Moving from Citrix to the Microsoft ecosystem provided exactly that.

The migration included replacing thin clients with laptops, retiring legacy servers, and shifting core line-of-business applications to Azure-based infrastructure. AVD was used to deliver these applications to a targeted group of users, while SharePoint and OneDrive replaced the on-premises file server.

Entra Domain Services was deployed to support legacy applications, and Microsoft 365 Business Premium provided the licensing foundation for identity, productivity, and security.

This wasn't just a virtual desktop replacement. It was a strategic IT modernisation initiative. By leveraging the Microsoft 365 ecosystem, the business was able to align infrastructure, collaboration, and security under a single platform. That integration was a key enabler for future growth.

Is Citrix Still Relevant?

Citrix still has a place, but it's a narrowing one. The rise of Windows 365, Azure Virtual Desktop and then of course the big players like Nerdio investing hugely in this market.

Citrix has evolved significantly over the last few years, with a shift towards cloud services and tighter integration with public cloud platforms e.g. Azure. Citrix Desktop-as-a-Service supports the ability of Azure Virtual Desktop environments directly, which might sound like a compelling hybrid - but adds complexity and cost.

For SMBs and mid-market organisations already invested in Microsoft 365, AVD offers everything needed to deliver secure, scalable virtual desktops without layering in another control plane, license or vendor.

Microsoft have closed most of the historic feature gaps, from Teams optimisation to session host monitoring. The days of Citrix being the only viable enterprise VDI solution are largely behind us.

However, Citrix can still be relevant in niche or complex scenarios:

• Enterprises with legacy, on-prem app dependencies.
• Large-scale hybrid deployments spanning multiple clouds or datacentres.
• Orgs needing ultra-granular control over protocol configurations.

For specific requirements, Citrix might still bring value. But for the majority of cases, especially in the SMB space, the native Microsoft approach is simpler, more cost-effective and potentially more future-proof.

Making the Right Choice for Your Customers

Citrix still has value in complex environments, as mentioned above; but for most SMBs and mid-market organisations, the native Microsoft approach is the clear winner. (Controversial opinion, perhaps).

If your customers already use Microsoft 365, AVD delivers secure, scalable desktops with native integration without additional licensing overhead. Aligning with cloud-first strategies, simplifies management whilst keeping costs predictable.

The key is simple: if the need is modernisation, not just virtualisation. AVD is often the smarter, faster and more strategic choice.

Want to talk strategy, have questions or want to touch-base? Connect with me below!

Let’s Connect

Whether you’re a non-profit looking for some assistance, an IT professional looking for guidance or simply want to discuss an idea - feel free to reach out! 💬 Connect with me on LinkedIn to network, stay updated, discuss a question or to collaborate!

9to5AzureThomas Cowen