Azure Virtual Desktop Hybrid
Azure Virtual Desktop with the session hosts on your own servers, next to the applications and data that need to stay on site. Designed, deployed and run by our team.
Book a callCloud-managed desktops, hosted where your data lives
In short: Azure Virtual Desktop Hybrid keeps the AVD service in Azure and runs the session hosts on your own hardware: Windows VMs on the hypervisor you already use, or headless physical Windows Server machines. It suits organisations whose applications need to sit close to on-premises databases, file servers or production systems. Microsoft runs the service; the machines are yours to run, or ours, because AVD Hybrid does not provision or power-manage them.
Some applications get slower the moment the desktop moves to the cloud, and the reason is rarely the application. It is the database, file share or production system it talks to constantly, which is still in your building. AVD Hybrid lets the desktop stay next to that data while the management and the user experience come from Azure.
Who this is for
The problem
When the desktop moves to the cloud and the data does not, every query, file open and save makes a round trip between the two. Applications built for a local network feel it first: screens that used to load at once take seconds, and the new platform gets the blame. The usual answers are to move the data as well, which is often a bigger project than anyone budgeted for, or to keep an ageing RDS estate going because nothing else seemed to fit.
What we would do
Keep the session hosts where the data is. If your applications depend on on-premises systems and you have hardware with life left, AVD Hybrid gives you the Azure Virtual Desktop service and user experience without putting a region's worth of distance between the desktop and its data. Plan from day one for the parts it leaves to you: building, patching, sizing and powering the hosts.
- If nothing your users run depends on on-premises systems, cloud AVD or Windows 365 is simpler, because there is no hardware to run at all.
- If you need Windows 11 or Windows 10 Enterprise multi-session on site, AVD Hybrid does not support it: AVD on Azure Local or a Windows Server RDS estate is the route.
- If you want autoscale, power management or Start VM on Connect from the service itself, those are cloud AVD features, not AVD Hybrid ones.
When we are not the answer: If your on-premises estate is being retired within a year or two anyway, building hybrid session hosts on it rarely pays, and we would point you at cloud AVD or Windows 365 instead. And if the RDS estate you have works and nobody needs anything it does not do, keeping it is a legitimate answer.
Azure Virtual Desktop Hybrid extends Azure Virtual Desktop to infrastructure you already own. The AVD service stays in Azure, managed by Microsoft, while the desktops and applications run on your own hardware, and users connect through Windows App exactly as they would to a host in Azure. We design it, deploy it, and run the on-premises side that Microsoft leaves to you.
More on how we deliver AVD Hybrid
The engagement starts with the question that decides whether hybrid is worth it at all: which applications genuinely need to sit next to on-premises data, and which would be just as happy in cloud AVD or Windows 365. From there we check the hardware, licensing and identity position, build and register the hosts, and take on the provisioning, patching, capacity and power management the service does not do. Most estates end up with a mix, and that is usually the right answer.
Everything you need, managed for you
What is Azure Virtual Desktop Hybrid?
Azure Virtual Desktop Hybrid extends cloud-native Azure Virtual Desktop to your existing on-premises infrastructure. The AVD service stays in Azure while the desktops and applications users open are hosted on your own hardware. Microsoft made it generally available in September 2026, after a public preview that opened in May 2025.
Session hosts can be:
- Windows virtual machines on your preferred on-premises hypervisor, as long as it supports Windows VMs.
- Headless physical Windows Server devices.
- Windows client devices only as dedicated, headless, rack-mounted session hosts. Laptops and personal PCs are not supported.
Users connect with Windows App, the same as for any Azure Virtual Desktop session host, so the experience is consistent across Azure Virtual Desktop, AVD Hybrid and Windows 365. To a user it is simply their desktop; the difference is where the machine behind it sits.
Is AVD Hybrid the same as Azure Virtual Desktop on Azure Local?
No, and the two are easy to confuse because both put session hosts on site. AVD Hybrid runs them on the hypervisor or physical servers you already have. Azure Virtual Desktop on Azure Local runs them on Azure Local, Microsoft's own on-premises platform, at version 23H2 or later, registered with Azure.
The practical differences follow from that. Azure Local supports Windows 11 and Windows 10 Enterprise multi-session as well as Windows Server 2019 to 2025, where AVD Hybrid does not support the multi-session client editions. Azure Local is also costed differently: user access rights, plus the Azure Local service fee, plus an Azure Virtual Desktop for Azure Local fee per active vCPU.
So the deciding question is the platform you want underneath. If you run, or are buying, Azure Local, that is its own route. If you want to use the servers and hypervisor you already run, AVD Hybrid is the one.
When does AVD Hybrid beat cloud AVD?
When the application cannot be separated from its data without slowing down, and moving the data is not on the table yet.
The cases we see most:
- Line-of-business applications that query an on-premises database constantly and were never built for a wide-area link.
- Teams opening large files from on-premises file servers all day.
- Desktops that need to reach production, manufacturing or site systems that stay in the building.
- Hypervisors or servers with years of life left, where buying the same capacity again in Azure would duplicate spend.
- An RDS estate that works but needs Azure Virtual Desktop's management and the Windows App experience.
The other side is just as real. If the dependency is a single database that could move to Azure in a planned project, cloud AVD next to that database may be the cleaner long-term answer, and we will say so. Hybrid is right when the on-premises systems are staying, not as a way to postpone a decision you have already made.
How does AVD Hybrid work?
Four steps take a machine from bare host to a desktop a user can open:
- Deploy a Windows VM, or prepare a headless physical device, on-premises.
- Install the Azure Arc connected machine agent, which registers the machine as an Arc-enabled server.
- Run the Azure Virtual Desktop Arc extension, which installs the AVD components and registers the machine with a host pool.
- Users connect through Windows App, as they would to any Azure Virtual Desktop session host.
The split of responsibility is the part to understand before you start. Microsoft manages the Azure Virtual Desktop service in Azure. You manage the on-premises machines, the networking and the hosting: the hardware, the hypervisor, the operating system, its patching and its capacity.
Two details save time on the day. On Windows Server, the extension enables the Remote Desktop Session Host role and reboots the machine if it has to install it, so we install the role first and avoid the unplanned restart. And a host can take up to 15 minutes to show as Available after the extension succeeds, which is normal rather than a fault.
What do you need before deploying AVD Hybrid?
The standard Azure Virtual Desktop prerequisites, plus a few that are specific to hybrid.
On top of the usual AVD set-up:
- Network
- session hosts that can reach the Azure Virtual Desktop required URLs and the Azure Arc network endpoints.
- Permissions
- the Desktop Virtualization Contributor role for whoever manages the host pool.
- Resource provider
- Microsoft.DesktopVirtualization registered on the subscription.
- Host pool
- a standard host pool with a managed identity, given Reader on the resource group that holds the Arc-enabled servers.
- Workspace
- a workspace and an application group for users to be assigned to.
Identity is where Windows Server and Windows client differ. Windows client session hosts can be Microsoft Entra ID-joined, Active Directory Domain Services-joined or hybrid-joined. Windows Server session hosts must be AD DS-joined or hybrid-joined: Entra-only join is not supported for them, because of their dependency on an RDS licensing server.
How is AVD Hybrid licensed?
In two parts: the user's entitlement to the operating system they connect to, plus an Azure Virtual Desktop Hybrid service user licence. Which entitlement applies depends on the host's operating system.
The supported combinations:
- Windows Server
- 2025, 2022, 2019 and 2016, with RDS CALs with Software Assurance (per user or per device) or RDS User Subscription Licenses, on VMs or headless physical servers.
- Windows client
- Windows 11 Enterprise or Windows 10 Enterprise, with Microsoft 365 E3, E5, A3, A5, F3 or Business Premium, the Student Use Benefit, Windows Enterprise E3 or E5, Windows Education A3 or A5, or Windows VDA per user.
- Not supported
- Windows 11 and Windows 10 Enterprise multi-session.
Windows client hosts can be VMs, or physical machines only as dedicated headless hosts. We do not quote figures here, because licence prices change and depend on how you buy. What we do is check your existing agreements first, since the entitlement half is often licensing you already hold and only the hybrid service licence is new.
What does AVD Hybrid not do, and who runs the machines?
AVD Hybrid does not provision your session hosts or manage their state, which rules out features cloud AVD users take for granted:
- Power management
- Autoscale
- Start VM on Connect
- Session Host Configuration
Microsoft's guidance is that organisations deploy and manage on-premises hosts with their hypervisor tools, scripts, partner solutions or other tools. In practice somebody has to own building hosts, patching them, keeping them consistent, adding capacity before Monday morning and replacing a host that fails.
That is the part we run as a managed service, so the estate has an owner from the day it goes live rather than from the first incident. It is also why sizing matters more than in Azure: the capacity you have on site is the capacity your users get, so headroom is a design decision, not an afterthought.
How does Systech deliver AVD Hybrid?
In four stages, each scoped before it starts:
- Assess
- which applications need to stay near on-premises data, what hardware and hypervisor capacity you have, and your licensing and identity position.
- Design
- host pool, workspace, identity join, network paths, and how hosts are built and patched.
- Deploy
- Azure Arc onboarding, the AVD Arc extension, application delivery and a pilot group before wider rollout.
- Run
- patching, capacity, monitoring and host lifecycle, through our 100% UK-based support team.
Systech is ISO 27001 and ISO 9001 certified and a Microsoft partner, and our virtual desktop work covers cloud AVD, Windows 365 and Remote Desktop Services as well as hybrid, so the recommendation is not tied to one platform. The team is led by Ryan Mangan, a Microsoft MVP for Azure Virtual Desktop and author of Mastering Azure Virtual Desktop.
How does AVD Hybrid compare with AVD on Azure Local, cloud AVD, Windows 365 and RDS?
They are five ways to deliver a Windows desktop, and they solve different problems. The deciding questions are where your data has to live, what hardware you already own, and how much infrastructure you want to run. The table sets out where each option runs and when each is the better fit.
| Option | Where session hosts run | Worth knowing | Best when |
|---|---|---|---|
| AVD Hybrid | Your own hypervisor or headless physical servers, managed from Azure | No client multi-session; no autoscale, power management or Start VM on Connect | Applications need on-premises data and you have hardware with life left |
| AVD on Azure Local | Azure Local 23H2 or later, on site | Supports Windows 11 and 10 Enterprise multi-session; Azure Local service fee plus a per-vCPU AVD fee | You run or are buying Azure Local and want multi-session density on site |
| Cloud AVD | Azure | Autoscale and power management from the service; compute billed as you use it | Your data is in the cloud, or can be, and demand varies |
| Windows 365 | Microsoft-hosted Cloud PCs | Fixed price per user, per month; nothing to size or run | You want predictability and no infrastructure |
| Remote Desktop Services | Your own servers, managed by you | RDS CALs; no Azure service involved | The estate works and nothing needs to change yet |
Checked against Microsoft Learn on 4 October 2026: Azure Virtual Desktop Hybrid overview, Deploy Azure Virtual Desktop Hybrid, Azure Virtual Desktop on Azure Local and What's new in Azure Virtual Desktop. Confirm current terms with Microsoft before buying.
Questions we hear a lot
What is Azure Virtual Desktop Hybrid?
It is Azure Virtual Desktop with the session hosts on your own infrastructure. The AVD service stays in Azure, managed by Microsoft, while desktops and applications run as Windows VMs on your on-premises hypervisor or on headless physical Windows Server devices. Users connect through Windows App, the same as for any AVD session host. It became generally available in September 2026.
Is AVD Hybrid the same as Azure Virtual Desktop on Azure Local?
No. AVD Hybrid uses the hypervisor or physical servers you already run. AVD on Azure Local runs session hosts on Azure Local, Microsoft's own on-premises platform at version 23H2 or later, supports Windows 11 and Windows 10 Enterprise multi-session, and is costed as user access rights plus the Azure Local service fee and a per-vCPU Azure Virtual Desktop for Azure Local fee.
Does AVD Hybrid support Windows 11 Enterprise multi-session?
No. Windows 11 and Windows 10 Enterprise multi-session are not supported on AVD Hybrid. Windows client session hosts run Windows 11 or Windows 10 Enterprise, and shared sessions on site come from Windows Server 2016 to 2025 hosts. If you need the multi-session client editions on site, AVD on Azure Local supports them.
Which hypervisors does AVD Hybrid support?
Your preferred on-premises hypervisor, as long as it supports Windows virtual machines, so the platform you already run is usually fine. Headless physical Windows Server devices are supported too. Windows client physical devices are supported only as dedicated, headless, rack-mounted session hosts, not laptops or personal PCs.
Does AVD Hybrid support autoscale or Start VM on Connect?
No. AVD Hybrid does not provision virtual machines or manage their state, so power management, autoscale, Start VM on Connect and Session Host Configuration are not available. Hosts are deployed and managed with hypervisor tools, scripts or partner solutions, which is the part we run as a managed service.
Can Windows Server session hosts be Microsoft Entra ID-joined only?
No. Windows Server session hosts on AVD Hybrid must be Active Directory Domain Services-joined or hybrid-joined, because of their dependency on an RDS licensing server. Windows client session hosts can be Entra ID-joined, AD DS-joined or hybrid-joined.
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How is AVD Hybrid licensed?
Each user needs an entitlement for the host operating system plus an Azure Virtual Desktop Hybrid service user licence. For Windows Server hosts the entitlement is RDS CALs with Software Assurance or RDS User Subscription Licenses; for Windows client hosts it is an eligible Microsoft 365, Windows Enterprise, Windows Education or Windows VDA per user licence. We check what you already hold before anything is bought.
Can we move from RDS to AVD Hybrid gradually?
That is how we would normally approach it. New AVD Hybrid hosts serve a pilot group while the existing RDS estate carries on for everyone else, and more users move once the pilot has proved the applications, sign-in and performance. It keeps the change reversible until you are confident in it.
AVD Hybrid is delivered UK-wide from our office in Brough, East Yorkshire, with on-site support across the county where it helps. We work with businesses in Harrogate, Huddersfield, Scarborough, Bradford, Hull and Leeds and 6 more Yorkshire towns and cities, and remotely with clients right across the UK.
Is AVD Hybrid right for your estate?
A short call about what you run on site, which applications need to stay near their data, and whether AVD Hybrid, cloud AVD or your existing RDS is the better fit.
Prefer to talk now? Call us on +44 (0)1482 770583.
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