Introduction

Organizations are increasingly moving user desktops to the cloud to support remote work, simplify management, and improve security. Microsoft offers two primary desktop virtualization solutions:

Windows 365 (Cloud PC)
Azure Virtual Desktop (AVD)

Although both solutions provide cloud-hosted Windows desktops, they are designed for different use cases and offer different levels of flexibility, scalability, and management.

This article explains:

Windows 365 vs Azure Virtual Desktop
AVD Host Pool Types
Windows 11 Enterprise Multi-Session
FSLogix Profile Containers
Storage Sizing and Design
Best Practices for Production Deployments

Windows 365 vs Azure Virtual Desktop

Windows 365

Windows 365 provides a dedicated Cloud PC for each user.

Think of it as:

One user = One cloud-hosted PC

Each Cloud PC has dedicated resources such as:

CPU
Memory
Storage

The user always connects to the same Cloud PC.

Advantages

Simple deployment
Predictable monthly cost
No host pool management
No FSLogix management
Ideal for executives, contractors, and remote workers

Disadvantages

More expensive at scale
No multi-session capability
Limited optimization opportunities

Azure Virtual Desktop (AVD)

Azure Virtual Desktop is Microsoft’s cloud-based VDI platform.

Instead of assigning a dedicated VM to every user, multiple users can share virtual machines.

AVD supports:

Multi-session desktops
Dedicated desktops
Remote applications
Autoscaling
Custom images
Advanced networking

Advantages

Lower cost at scale
Multi-session support
Full Azure integration
Autoscaling capabilities
Greater flexibility

Disadvantages

More complex to deploy
Requires infrastructure management
Requires profile management using FSLogix

Understanding AVD Host Pools

A Host Pool is a collection of Session Host virtual machines.

Users connect to the Host Pool, and AVD determines which VM will handle the session.

There are two main Host Pool types.

Pooled Host Pool

In a pooled host pool, multiple users share the same session host VMs.

Example:

VM1 hosts 12 users
VM2 hosts 14 users
VM3 hosts 10 users

All users share the same underlying infrastructure.

Advantages

Lowest cost
Highest scalability
Efficient resource utilization

Ideal For

Office workers
ERP users
Call centers
Shared desktop environments

           POOLED HOST POOL

 User1 ----\
 User2 -----\
 User3 ------> VM1
 User4 -----/
 User5 ----/

 User6 ----\
 User7 -----\
 User8 ------> VM2
 User9 -----/
 User10 ----/

Personal Host Pool

In a personal host pool, each user receives a dedicated VM.

Example:

User A → VM1
User B → VM2
User C → VM3

Users always reconnect to their assigned machine.

Advantages

Full isolation
Custom software support
Easier troubleshooting

Ideal For

Developers
Engineers
Administrators
Users requiring elevated permissions

           PERSONAL HOST POOL

 User1 ---------- VM1

 User2 ---------- VM2

 User3 ---------- VM3

Windows 11 Enterprise Multi-Session

One of the most unique AVD features is Windows 10/11 Enterprise Multi-Session.

Normally:

Windows 10 supports one interactive session
Windows 11 supports one interactive session

If a second user logs in, the first user is disconnected.

However, Microsoft created a special Azure-only version called:

Windows 10/11 Enterprise Multi-Session

This version allows multiple users to log in simultaneously.

Example:

One Windows 11 VM
16 GB RAM
10 users connected concurrently

The operating system behaves similarly to an RDS server while preserving the Windows 11 desktop experience.

Load Balancing in Pooled Host Pools

AVD offers two load balancing methods.

Breadth-First

Users are distributed evenly across available VMs.

Example:

VM1 = 5 users
VM2 = 5 users
VM3 = 5 users

Benefits

Better performance consistency
Lower resource contention

Drawback

More VMs remain powered on

             BREADTH-FIRST

 VM1 = 5 users
 VM2 = 5 users
 VM3 = 5 users

Depth-First

AVD fills one VM before moving to the next.

Example:

VM1 = 12 users
VM2 = 10 users
VM3 = 0 users

Benefits

Better cost optimization
Supports aggressive autoscaling

Drawback

Higher resource utilization per VM

For most production environments focused on cost savings, Depth-First is recommended.

             DEPTH-FIRST

 VM1 = 14 users
 VM2 = 14 users
 VM3 = 2 users

What is FSLogix?

FSLogix is Microsoft’s profile container technology.

It solves one of the biggest challenges in pooled virtual desktop environments:

User profiles must follow the user regardless of which session host they connect to.

Without FSLogix:

Users receive different profiles on different VMs
Outlook reconfigures repeatedly
Desktop settings disappear
Login times increase

How FSLogix Works

When a user logs in:

AVD authenticates the user
FSLogix locates the user’s profile container
The profile container is mounted
The VHDX file becomes the user’s profile

Example:

\Storage\Profiles\UserA.vhdx

This virtual disk contains:

Desktop
AppData
Outlook profile
Teams cache
User settings
Registry profile data

The user experiences the same desktop regardless of which session host they use.

          USER LOGIN FLOW

 User
   |
   V

 Session Host
   |
   V

 Azure Files
   |
   +------------------+
   | UserA.vhdx       |
   | UserB.vhdx       |
   | UserC.vhdx       |
   +------------------+

   |
   V

 User Profile Mounted
 As C:\Users\UserA

Why FSLogix is Critical

Imagine a pooled host pool with:

Session Host 1
Session Host 2
Session Host 3

Day 1:

User logs into Session Host 1.

Day 2:

User logs into Session Host 3.

Without FSLogix:

Different desktop
Different settings
Outlook rebuilds

With FSLogix:

Same profile
Same desktop
Same Outlook configuration

The user never notices the difference.

FSLogix Storage Design

The most common storage options are:

Storage Type	Recommendation
Azure Files Premium	Recommended
Azure NetApp Files	High Performance
SMB File Server	Possible but requires more management

Most organizations deploy:

Azure Files Premium
Private Endpoint
Active Directory integration

Sizing FSLogix Storage

Typical profile sizes:

User Type	Average Size
Light User	3-8 GB
Medium User	8-20 GB
Heavy User	20-50 GB

Example:

75 users × 15 GB average profile

= 1.1 TB

Add growth capacity and backup overhead:

Recommended storage:

1.5 TB

FSLogix Optimization Best Practices

Exclude Temporary Data

Examples:

Browser cache
Temporary files
Application cache folders

This prevents unnecessary profile growth.

Use OneDrive Known Folder Move

Instead of storing large document libraries inside the profile container:

Redirect Desktop
Redirect Documents
Redirect Pictures

to OneDrive.

Benefits:

Smaller FSLogix profiles
Faster logins
Reduced storage costs

Set Profile Size Limits

Example:

30 GB maximum profile size

This prevents uncontrolled growth.

Profile Locking and Concurrent Sessions

FSLogix mounts the profile VHDX exclusively.

This means:

One profile container = One active mount

Best practice:

Enable:

Single Session Per User

This ensures:

Users reconnect to existing sessions
No profile conflicts occur
Profile corruption risk is minimized

Example Production Design (80 Users)

Host Pool

Type:

Pooled

Load Balancing:

Depth-First

Session Hosts

7 × D8s_v5

Each host supports approximately:

12-15 users

Profile Storage

Azure Files Premium

2 TB provisioned capacity

Security

Microsoft Entra ID
MFA
Conditional Access
Private Endpoints
No public RDP exposure

Autoscaling

Business Hours:

All hosts online

After Hours:

Hosts automatically shut down

This significantly reduces Azure compute costs.

                USERS
                  |
                  V

          Microsoft Entra ID
                  |
                  V

              Host Pool
                  |
     --------------------------
     |    |    |    |    |    |
    VM1  VM2  VM3  VM4  VM5  VM6
     |    |    |    |    |    |
     --------------------------
                  |
                  V

          Azure Files Premium
             (FSLogix)

                  |
                  V

            Corporate Apps

When Should You Choose Windows 365?

Choose Windows 365 when:

Simplicity is important
You need dedicated desktops
You have a small number of users
You want minimal management overhead

When Should You Choose Azure Virtual Desktop?

Choose Azure Virtual Desktop when:

You need cost optimization
You have many users
You want multi-session capability
You require advanced customization
You need autoscaling

Final Thoughts

Windows 365 and Azure Virtual Desktop are both excellent cloud desktop solutions, but they serve different purposes.

Windows 365 focuses on simplicity and dedicated Cloud PCs.

Azure Virtual Desktop focuses on flexibility, scalability, and cost efficiency.

For organizations deploying pooled virtual desktops, Windows 11 Enterprise Multi-Session and FSLogix are the technologies that make AVD practical, scalable, and cost-effective.

Understanding Host Pools, FSLogix, storage design, and load balancing is essential for building a successful Azure Virtual Desktop environment.

Introduction

Windows 365 vs Azure Virtual Desktop

Windows 365

Advantages

Disadvantages

Azure Virtual Desktop (AVD)

Advantages

Disadvantages

Understanding AVD Host Pools

Pooled Host Pool

Advantages

Ideal For

Personal Host Pool

Advantages

Ideal For

Windows 11 Enterprise Multi-Session

Load Balancing in Pooled Host Pools

Breadth-First

Benefits

Drawback

Depth-First

Benefits

Drawback

What is FSLogix?

How FSLogix Works

Why FSLogix is Critical

FSLogix Storage Design

Sizing FSLogix Storage

FSLogix Optimization Best Practices

Exclude Temporary Data

Use OneDrive Known Folder Move

Set Profile Size Limits

Profile Locking and Concurrent Sessions

Example Production Design (80 Users)

Host Pool

Session Hosts

Profile Storage

Security

Autoscaling

When Should You Choose Windows 365?

When Should You Choose Azure Virtual Desktop?

Final Thoughts

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