New Technology The Projected Total Economic Impact™ Of Windows 365 And Azure Virtual Desktop

Cost Savings And Business Benefits Enabled By Windows 365 And Azure Virtual Desktop

A FORRESTER NEW TECHNOLOGY PROJECTED TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY MICROSOFT, MARCH 2025

The combined effects of increased distributed workforces and continual pressure for cost-effective IT solutions, simplified management processes, and seamless and robust security measures underscore the need for a comprehensive digital workplace strategy. Using both Windows 365 and Azure Virtual Desktop can enable organizations to harness the strengths of each platform to optimize their virtualization deployments according to varying business demands and user requirements.

Windows 365 and Azure Virtual Desktop are cloud-based solutions from Microsoft that provide desktop virtualization environments to organizations. They enable users to securely access their personalized desktop, apps, settings, and content from the Microsoft cloud on any device, and they cater to different use cases and organization structures.

Windows 365 is a fully managed service that operates on a fixed per-user pricing model regardless of usage, and this can simplify budgeting and eliminate concerns about fluctuating costs based on resource consumption. Microsoft is responsible for the underlying infrastructure, including endpoint management and security, which can make it easier for organizations with limited IT resources or teams that lack virtual desktop infrastructure (VDI) expertise to deploy and manage virtual desktops.

Azure Virtual Desktop is available to organizations as part of a set of eligible licenses they have and use with physical PCs. Microsoft uses a consumption-based pricing model for Azure Virtual Desktop, and the solution provides more extensive flexibility and customization options, albeit with more complex management. Organizations must manage their own Microsoft Azure subscriptions — which includes virtual machine (VM) configurations, networking, storage, and quota — and this may require more advanced technical skills and resources. Azure Virtual Desktop allows for more granular control over the environment, including multisession capabilities and specific application streaming options.

Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Windows 365 together with Azure Virtual Desktop.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of deploying, using, and maintaining Windows 365 and Azure Virtual Desktop on their organizations.

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Projected return on investment (ROI)

94% - 217%

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Projected net present value (NPV)

$3.2M - $7.4M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers in organizations using both Windows 365 and Azure Virtual Desktop, and surveyed 207 respondents with experience using one or both of the solutions at their organization. For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization that is a multibillion-dollar global organization with a distributed workforce of 2,000 people including contractors, users with specialized workload needs, and employees who join through acquisition.

Interviewees said that prior to using Windows 365 and Azure Virtual Desktop, their organizations heavily relied on their on-premises infrastructures. They found it difficult to scale and integrate legacy remote and virtual solutions, especially for remote employees, contractors, and third-party partners. Providing secure access to specific tools and systems required complex and often cumbersome solutions, and it was difficult to retain control over shadow IT and ensure consistent security and compliance across various departments and external partners.

Interviewees said that after investing in Windows 365 and Azure Virtual Desktop, their organizations were able to simplify their endpoint management processes, lower infrastructure costs, and improve end-user productivity while helping provide security controls. Key results from the investment include enhanced end-user productivity from faster and more effective provisioning that results in fewer service tickets and reducing latency and outages. The investment also reduced IT infrastructure and PC lifecycle management costs significantly and streamlined security workflows.

Key Findings

Quantified projected benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • End-user productivity gains from reduced latency and outages. Employees and contractors at the composite organization who use Windows 365 and Azure Virtual Desktop save 6 to 12 minutes per day from avoided outages and latency compared to their previous environments. Over three years, the projected PV associated with these productivity gains range from $3.1 million to $6.2 million.
  • Reduced PC lifecycle management costs. After deploying Windows 365, the composite organization sets up a bring-your-own-PC (BYOPC) program for its contractors and avoids purchasing, provisioning, shipping, maintaining, and reclaiming physical laptops for these users. Over three years, the projected PV associated with these savings ranges from $1.1 million to $1.2 million.
  • End-user productivity gains from faster provisioning. By using virtual desktops enabled by Windows 365, the composite’s new employees and contractors can start working within hours, and this rapid setup is particularly valuable for the organization’s overseas teams and external partners. Over three years, the projected PV associated with these productivity gains ranges from $1.6 million to $1.8 million.
  • Reduced IT infrastructure costs. The composite organization reduces costs associated with on-premises operations after migrating to these two Microsoft cloud services. Over three years, the savings associated with this benefit yield a projected PV ranging from $722,000 to $1.5 million.
  • Improved security. The composite organization relies on Microsoft-managed services, which reduces the need for extensive on-premises security infrastructure and personnel. Over three years, the savings associated with this benefit yield a projected PV ranging from $60,000 to $122,000.
  • Savings from a reduction to the number of service tickets opened. The composite organization’s Windows 365 and Azure Virtual Desktop users are able to resolve many common issues without needing to contact IT support. Over three years, the savings associated with this benefit yield a projected PV ranging from $39,000 to $64,000.

Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

  • Increased agility/flexibility. The composite organization experiences increased agility and flexibility as a result of the reduced dependence on physical hardware.
  • Savings from pooled services. The composite organization takes advantage of the multisession capability of Azure Virtual Desktop to consolidate users on less infrastructure to manage costs more effectively.
  • Conservation of bandwidth during large-scale events. By using Windows 365 and Azure Virtual Desktop, the composite organization saves on the network bandwidth needed to host companywide events.
  • Backup plan for cyberattacks. The composite organization establishes an arrangement with Microsoft so that in the event of a cyberattack, it can increase Windows 365 or Azure Virtual Desktop capacity on an emergency basis to keep employees working.
  • Relationship with Microsoft. The composite organization benefits from close, collaborative relationships with Microsoft account and product teams.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • Microsoft costs. The composite organization provides standard access to Windows 365 to its contractors and employees and access to Azure Virtual Desktop to a subset of employees with specialized workload needs. These licensing costs plus compute, storage, and networking costs add up to a risk-adjusted PV of $3.2 million over three years.
  • Migration and ongoing management costs. The composite’s initial deployment of Windows 365 and Azure Virtual Desktop requires the effort of five FTEs working on the project over three months. Ongoing management of the combined environment initially requires 20% of the effort of four FTEs, but this effort increases over time to accommodate the organization’s growing numbers of users. Over three years, the risk-adjusted PV comes to $233,000.

Forrester modeled a range of projected low-, medium-, and high-impact outcomes based on evaluated risk. This financial analysis projects that the composite organization accrues the following three-year net present value (NPV) for each scenario by enabling Windows 365 and Azure Virtual Desktop:

  • Projected high impact of a $7.4M NPV and ROI of 217%.
  • Projected medium impact of a $5.3M NPV and ROI of 156%.
  • Projected low impact of a $3.2M NPV and ROI of 94%.

“Allowing for both [Windows 365 and Azure Virtual Desktop] to run gives us this holistic approach and solution for an enterprise that has complexity in its architecture and in the ways that it has to communicate internally and with its customers. I don’t think anyone at a large scale like a Fortune 50 [company] can go astray from this because it would be very difficult to run operations otherwise.”

Innovation architect, healthcare

Key Statistics

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    Projected return on investment (PROI)

    94% - 217%
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    Projected benefits PV

    $6.6M - $10.8M
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    Projected net present value (PNPV)

    $3.2M - $7.4M
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    Total costs

    $3.4M
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Three-Year Projected Financial Analysis For The Composite Organization

New Tech TEI Framework And Methodology

From the information provided in the interviews and survey, Forrester constructed a New Technology: Projected Total Economic Impact™ (New Tech TEI) framework for those organizations considering an investment in Windows 365 and Azure Virtual Desktop.

The objective of the framework is to identify the potential cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the projected impact that using Windows 365 and Azure Virtual Desktop together can have on an organization.

  1. Due Diligence

    Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Windows 365 and Azure Virtual Desktop.

  2. Early-Implementation Interviews And Survey

    Interviewed four decision-makers and surveyed 207 respondents at organizations using Windows 365 and/or Azure Virtual Desktop to obtain data about projected costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.

  4. Projected Financial Model Framework

    Constructed a projected financial model representative of the interviews and survey using the New Tech TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents.

  5. Case Study

    Employed four fundamental elements of New Tech TEI in modeling the investment’s potential impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

Disclosures

Readers should be aware of the following:

This study is commissioned by Microsoft and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Windows 365 and Azure Virtual Desktop.

Microsoft reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.

Microsoft provided the customer names for the interviews but did not participate in the interviews.

Forrester fielded the double-blind survey using a third-party survey partner.

Consulting Team:

Kim Finnerty

Caro Giordano

M
K

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