Microsoft’s new Cloud PC - ready for your small business?

[ Technologies > Proof of Concept > Prototype > Pilot > Production ]

[ Technologies > Proof of Concept > Prototype > Pilot > Production ]

On 14 July 2021 Microsoft announced a new cloud-based service that allows business users to access a PC running in the cloud from any location and from most modern device types (PC/Mac and Mobile). It’s called Windows 365 and became ‘Generally Available’ within Australia on 2 August 2021.

Side Note - Microsoft did offer a free 60-day trial of the service when they launched, however the trial has since been suspended due to vastly unexpected high demand. You can still however experience Windows 365 by signing up for a paid subscription.

But what if I have Windows… is this different? I’m confused!

Microsoft marketing material and support documents are now often referring to Windows 365 as ‘Windows 365 Cloud PC’ or more simply, ‘Cloud PC’. It is our opinion that the term ‘365’ just confuses things and ‘Cloud PC’ is much simpler as it describes where you are getting this thing from (the Cloud), and what you are effectively getting (a PC). Simples! 😊

From here on we will interchangeably use the terms ‘Windows 365’ (in terms of the branded service), or ‘Cloud PC’ (in terms of what is being used). It’s all the same!

What is Windows 365?

Let’s start first by explaining what Windows 365 is not. Windows 365 is not a new version of Windows, the operating system which runs on a PC. Rather, it is a new service from Microsoft that provides you with remote access to a physical PC running the ‘Windows 10’ operating system. This service runs from within the same highly secure Microsoft Data Centres that provide Microsoft’s Azure public cloud computing platform and related services (of which Windows 365 is but one) – hence the term ‘Cloud PC’.

Who is it for?

Windows 365 is exclusively available for business users only. Within that, business users are split into 2 types: Small Business (for up to 300 users) or Enterprise (no limit no users). The distinction between each business type is discussed in more detail below.

A personal version of the Windows 365 service might come later, or never - but for now, its business only.

What are the benefits of using Windows 365 for my business and people?

Microsoft keeps the Cloud PC and Windows 10 fully patched/secure and when combined with secure OneDrive data storage and cloud management of the software that gets installed on it (requires a Microsoft 365 Business Premium license), there’s a lot less to worry about in terms of risks for the business. If your remote workers are overseas as well, this keeps things nice and contained, again less risk.

A massive benefit of this new offering is it delivers on several of the key benefits of ‘Cloud computing’, namely the heavy use of automation in the back-end to provide the service (which becomes Microsoft’s responsibility); self-provisioning allows end-users the ability to quickly scale their needs up and down without any manual intervention (no week-long ordering process, delivery delays - especially during Covid lockdowns, manual setup by your IT department etc.). Effectively you can add extra desktops within a few hours and have most of the set up automated to deliver these PCs according to your standard software setup (e.g. Windows 10, Outlook, Word/Excel/PowerPoint, Teams etc. + a secure OneDrive for working files, and access to your company SharePoint teamsites and shared document folders) - all according to the level of access and security permissions you set in advance.

How do you access and use the Cloud PC?

Windows 365 provides an instant-on boot experience that enables you to ‘stream’ all your personalised applications, tools, data, and settings from the cloud across any device including Windows, Mac, Apple iPad/iPhone, Android Tablet/Phone.

You can access the Cloud PC from a supported device type via:

• Web browser and go to the Windows 365 home page (https://windows365.microsoft.com)

• By using a Microsoft Remote Desktop client (available for download on the Windows 365 home page)

According to Microsoft, if you have an internet connection that’s fast enough to ‘stream’ (aka watch) a movie over a service like Netflix, then you will enjoy a great ‘user experience’ with Windows 365. The Windows experience is consistent, no matter the device type and access method - as shown below.

Always on?

Microsoft are coining the term ‘always on’. What they are referring to here is a feature whereby the Cloud PC retains the current ‘user session’ in the same state as it was when you disconnected from it. So, when you disconnect from, say your MacBook and then re-connect to the session on your iPad, it will show on the screen exactly where you left it and you can continue working from there. Furthermore, all applications, content, and settings/customisations you make on the Cloud PC remain in place even if you reboot the Cloud PC - just like a regular computer!

Here’s some screenshots of what ‘Always on’ looks like when you switch the same Windows 365 between different types of computers, namely:

• an 11-year-old Apple MacBook laptop - Windows 365 running within the Safari browser

• a modern PC running Windows 11 - Windows 365 running within the Microsoft Remote Desktop app

• an (even older) PC running UBUNTU Linux - Windows 365 running within the Firefox browser (yes seriously, Linux!):

Windows 365 running within Safari on an 11-year-old MacBook Pro (and it works smooth as butter!)

The exact same Windows 365 session resumed on another computer, running within the Microsoft Remote Desktop app

Again, the exact same Windows 365 session resumed on another computer, running within Firefox on Ubuntu Linux!

What applications are supported?

Whilst the Cloud PC runs Windows 10 (with Windows 11 also available later this year as an additional option), it does not include any applications. However, just like a physical Windows PC, you can install any application that is supported on Windows 7/8.1/10 onto the Cloud PC.

Note - Under their ‘App Assure’ programme, Microsoft is committed to ensuring your apps will work on the latest versions of their software – specifically, they commit to apps that work on Windows 7/8.1/10 will work on Windows 365, or they will fix it at no additional cost. There is a need however to be on an eligible Microsoft 365 or Window 10 plan of 150+ licenses to take advantage of this offer.

User Customisation (e.g., installing apps, changing your desktop background)?

You can customise the Cloud PC according to your needs. Unlike many other ‘virtual PC’ solutions you might have used before where IT (to reduce management overhead or to meet security/compliance mandates) typically locks down the level of user configurability and/or tears down the PC entirely when you end the session, the Cloud PC allows the user to install and retain applications after a reboot, with content (a fancy word for data) and settings/customisations when you disconnect from it or reboot the Cloud PC (you can trigger the PC to reboot via the connection menu).

So, yes that app which only your salespeople use, or your favourite photo from your dog’s birthday party you want as a Windows background is fully supported!

Customisations of your desktop are always retained - just the way the puppy likes it!

Something a little more serious - Management and automation

From a security/compliance/standardisation aspect, as well as reducing the cost of management and patching overheads typical of larger deployments of PCs, settings and applications can also be set up to auto-install on new Cloud PCs using Microsoft’s Endpoint Manager (aka MEM – previously known as Microsoft Intune). This is an additional cost over and above the Windows 365 licenses and requires your IT Administrator to purchase the required MEM license, assign it to the user of the Cloud PC and then enrol the Cloud PC to MEM/Intune (using the same way they would enrol a Windows 10 machine into Intune).

The key point here is that if you want to streamline how your Cloud PC fleet is initially secured, which applications are to be automatically installed (without the end user doing anything), and what access to data they are set up with (e.g. OneDrive for securely storing files they work on, and SharePoint Team sites for collaboration) - then you can do this relatively easily. There is additional cost, via the Microsoft 365 Business Premium license for each user, but that’s the same as you would need to do for a physical PC sitting on a desk. We cover additional cost considerations a little further below.

A related note - as part of expanding our Digital Innovation Lab service offerings, we (Explore Digital) are currently building out a prototype to test how well Endpoint Management is supported and works under the Windows 365 Business plan as this is typical of our SME clients under 300 users. Microsoft currently only make a brief mention of Endpoint Management integration within the Enterprise tier of services, but our research on this shows there should be no impediment to deploying MEM with even very small deployments using the Windows 365 Business plan (we’re talking like 5 people). We will be posting a future update on these important capabilities over the coming weeks – so stay tuned for our findings and guidance in a new blog post. And please contact us if you are interested in engaging Explore Digital to help your business evaluate Windows 365 for your specific business needs!

How to purchase Windows 365?

Plans

Windows 365 can be purchased via your existing Microsoft 365 Admin Center (go to admin.microsoft.com then Billing, Purchase services – Windows 365), or via the Windows 365 main site (windows 365.microsoft.com). Both routes will eventually get you to confirm/establish your Microsoft Account and related Billing details.

Purchasing Windows 365 via Microsoft 365 admin center

The first thing Microsoft will ask is what type of business user you are and provides you with 3 types to choose from with the following descriptions (edited slightly for brevity), as follows:

• Windows 365 Business is for smaller organisations that want a simple way to buy, deploy, and manage Cloud PCs, for up to 300 users. With your Windows 365 Cloud PC, you can securely stream your Windows experience -- including your personalised apps, content, and settings -- from the Microsoft cloud to any device.

• Windows 365 Business (with Windows Hybrid Benefit) is for smaller organisations that want a simple way to buy, deploy, and manage Cloud PCs, for up to 300 users on a Windows 10 Pro device. Windows Hybrid Benefit is a licensing benefit that helps reduce the cost of Windows 365 Business. With Windows Hybrid Benefit, you receive a discount of up to 16 percent on your Windows 365 subscription if you already use Windows 10 Pro on a device. Savings vary by Windows 365 Cloud PC configuration and region.

• Windows 365 Enterprise is for organisations that want to manage their Cloud PCs with Microsoft Endpoint Manager and take advantage of integrations with other Microsoft services, including Azure Active Directory and Microsoft Defender for Endpoint. Windows 365 Enterprise has no license limit. To use Windows 365 Enterprise, each user must be licensed for Windows 10 Enterprise or Windows 11 Enterprise, Microsoft Endpoint Manager, and Azure Active Directory P1. Windows 10 Enterprise or Windows 11 Enterprise rights are provided by Windows E3 and Windows E5 licenses for the primary users of PCs running Windows 10 or Windows 11 and other qualifying operating systems. A Windows Enterprise E3 or Windows Enterprise E5 VDA license is required to receive these rights for all other users.

Selecting a Cloud PC configuration

Once you have identified the type of plan you fit within, you can then select the Cloud PC configuration according to your needs. Pricing for each will vary according to your earlier selection of Business, Business with hybrid benefit or Enterprise. Below we have listed only 5 of the available plans to serve as an illustration. Available plans currently go from a basic PC (1 vCPU, 2GB RAM, 64GB storage) to one with some considerably serious grunt (8 vCPU, 32GB RAM, 512GB storage)!

Per month prices are in Australian dollars, exclude gst. as at 27/8/2021

Payment

Once you have specified the quantities of each Cloud PC you wish to add to the subscription, you then simply select the payment method (e.g., credit card), your tax details and then click Place order.

Provisioning (after payment)

The Cloud PC hardware and Windows operating system

The Cloud PC hardware is provisioned (i.e., built) when you order it and then assign it to a user. The PC is dedicated for use for as long as you keep the subscription paid up. Provisioning time varies according to demand, but typically takes about 30-45 minutes (yes you can get a fully-functional Windows PC within less than an hour of deciding you need it – very cool!). At the end of the provisioning process, you can expect to receive your invoice for the Cloud PC(s), linked to your current Microsoft billing account, with the typical 30 days to pay for it using the payment method you specified at time of order.

You can also add a many of these PCs as you need up to 300 maximum under the ‘Business’ tier, and above that you need to use the ‘Enterprise’ tier which scales up to whatever you need; however Enterprise tier has specific Windows 10 Enterprise licensing requirements and has a lot more constraints such as there must be a Site-to-Site VPN or Expressroute connection to the business’ on-site network which also must have connectivity to the businesses Windows servers for authentication (but then again Enterprise would have an IT team to set all that up, so not too big a deal).

Other costs considerations and TCO?

Working through cost/benefit from a SME perspective you need to consider the Total Cost of Ownership (TCO). Microsoft are, after all, touting this as an ideal solution for SME and Education business segments. However, the marketing doesn’t explain all the costs (e.g. Windows 365 only comes with a built-in Windows 10 license and that’s it!), so as the Cloud PC only gives you a computer running Windows 10 within a data centre ($54.90 using above example pricing), you need to add software like Microsoft 365 Business Premium for another $28/month which gives you Outlook, Word, Excel, PowerPoint, Teams, OneDrive with 1TB (i.e. 1,000 GB) cloud data storage, and MEM cloud-based management tools to auto-deploy software, updates and security patches). So, it’s a TCO (excluding app support to your users) of approx. $83/month or $2,988 over a typical 3-year lifespan (basically $1,980 for the PC and $1,008 for Microsoft 365 suite).

A note on remote support

As part of our early evaluation of the technical features, we looked at how helpdesk support for users can be delivered remotely. With Windows 365 running entirely from a virtual PC hosted by Microsoft, it introduces some technical challenges - as instead of being able to install some software on a physical PC to allow remote access for support purposes (e.g. VNC, Splashtop, TeamViewer), there are some issues around both user and technician being able to both see the user screen at the same time. However, with the help of the Windows 365 support folks from Microsoft we were able to simply use the ‘Quick Assist’ app which comes free with Windows 10 to provide this functionality. The ability to use such a tool adds to the value and helps create a positive experience (UX) for the end user. Note - we will blog about how this tool works in a future blog post as we found it to be really simple to use, secure and effective - and most of all it’s FREE!

Microsoft’s (free) Quick Assist tool

Summary

Microsoft’s new Windows 365 is indeed an exciting new service for SMEs. It allows SMEs to quickly establish from one-to-many new Windows 10 PCs and then deploy apps and enable access to secure data repositories including OneDrive and SharePoint team sites with relative ease. The ability to size the Cloud PCs according to each user’s specific needs allows your business to right-size expenditure and where these needs change over time, also allows you to adjust performance of the Cloud PC up, down, or perhaps remove it completely. Windows 365 allows you to be responsive to your people and customers alike and allows them to quickly be productive - even on their first day of joining. With Windows 365 gone are the times where it takes weeks to prepare and deliver a computer for your staff - from IT ordering time, Vendor build and delivery time, IT setup time, Courier delivery time to the staff member etc. Instead, a new Cloud PC can be completely ready within a hour or so from the time it’s ordered online - complete from a hardware, software and data perspective - your people are productive from the moment they connect to the service. And if some of your people are seasonal and/or live/work across a wide domestic/international geography, then the value is significantly enhanced in terms on not just cost, but also in ability to scale up/down/off and a reduction of risk of access and customer data protection.

Windows 365 provides your people with flexibility to choose the device they want to work on - which is critically important in a time where working from home is commonplace and where their workspace (where things actually get done) might be the kitchen table, a bedroom or out on the back porch (to stave off the lockdown blues!). Windows 365 provides an instant-on boot experience that enables ‘streaming’ all your personalised applications, tools, data, and settings from the cloud across any device including Windows, Mac, Apple iPad/iPhone, Android Tablet/Phone. Windows 365 sessions can also disconnect on one device type and be instantly resumed on another, so the productive flow of work is not interrupted when changing work locations (e.g., from sitting at a desk on a PC, to relaxing in the lounge on an iPad).

Furthermore, Windows 365 provides the user the flexibility to customise their Windows 10 desktop to the way they need it and how they want it as well - from needing access to key corporate apps (e.g., Microsoft Office) and line of business systems (ERP, Salesforce, CRM, Accounting) which is critical to doing their jobs - to personal productivity apps and nice touches like customising the desktop background which helps to improve their productivity.

Your Next Step?

Indeed the above promises a lot of benefit for a relatively low price of entry. If you are interested in looking at Windows 365, then perhaps consider engaging Explore Digital Innovation Labs to help you best structure and prioritise your business use cases and then evaluate Windows 365 ability to meet your specific business needs. Please Contact Us.