The way people work continues to evolve—and so do the ways organizations use Windows delivered from the cloud. From small businesses without dedicated IT teams, to enterprises modernizing existing virtualization deployments, to shift workers who need flexibility without a dedicated device, the range of scenarios continues to grow. Today’s updates build on that momentum—expanding how Windows 365 and Azure Virtual Desktop support more environments, more customers, and more ways of working.
Windows 365 and Azure Virtual Desktop have always been built to meet customers where they are and support their future ambitions.
Today, we’re announcing updates that extend that flexibility even further—helping more customers adopt cloud-powered Windows experiences in ways that fit their reality.
Making Cloud PCs more accessible for small and medium businesses
Small-to-medium-sized businesses don’t buy or use technology the way large enterprises do. Windows 365 Business is designed for smaller organizations (up to 300 seats) that want ready-to-use Cloud PCs with simple management—without needing other Microsoft licenses to get started. To make Windows 365 Business even more accessible, we're reducing the list price of Windows 365 Business by 20% across all Cloud PC configurations as of May 1, 2026.
In addition to our permanent price drop, eligible new customers can save an additional 20% off the new lower price through June 301.
This price change helps reduce the barriers to getting started with Windows 365. Cloud PCs are now even more accessible to smaller organizations, helping them give their people a full, secured Windows experience from the cloud.
A new name for Windows 365 Frontline—and a broader mission
Shift workers, part-time employees, and others who only need a computing device for periodic use have historically shared physical PCs at a desk on-site. In a workplace that's increasingly distributed, that model breaks down: workers can't easily share a device they no longer sit next to. And for many organizations, equipping workers with a dedicated PC isn't economically feasible—especially when many only need access for a few hours a day.
That's the gap Windows 365 Flex (formerly Windows 365 Frontline) is built to close.
Designed for organizations of any size, Windows 365 Flex is a secured, flexible solution that enables organizations to deliver Cloud PCs in ways that fit how employees work, whether through shared access or cost-efficient dedicated experiences.
It gives organizations the flexibility to extend cost-effective, personalized technology access to any employee who doesn't require a dedicated PC of their own. Once employees sign in, they have immediate access to all their personalized resources—apps, data, desktops, and settings—so they can hit the ground running. Windows 365 Flex can also be deployed in shared mode, where the Cloud PC can be reset to a fresh state between each use, or optionally persists a user’s settings and application data across sessions. Windows 365 Flex in shared mode also serves as the foundation for Windows 365 Cloud Apps—an app-only experience that provides users with access to individual applications without requiring a dedicated Cloud PC. Windows 365 Flex can also be provisioned in configurations that support the requirements of developers.
Since Windows 365 Frontline was first launched, we have seen it adopted more broadly across organizations with part-time employees, seasonal staff, contractors, and roles that require occasional or task-based PC access. The new name, Windows 365 Flex, better represents this flexibility. It reflects a broader shift—from solving a niche scenario to enabling workers of all types to participate in the modern organization in the way that works best for them.
The name change does not affect how the service works or how it is purchased.
Azure Virtual Desktop Hybrid now in public preview
For many organizations, the journey to the cloud isn’t a single step—it’s a path shaped by regulatory needs, existing investments, and operational realities. For customers who can't move every workload to the public cloud overnight, Azure Virtual Desktop Hybrid opens a new door. Now in public preview, it extends the Microsoft cloud-managed Virtual Desktop Infrastructure (VDI) service to on-premises environments—without requiring customers to replace existing infrastructure.
With Azure Virtual Desktop Hybrid, customers can run Azure Virtual Desktop session hosts on-premises using their existing hardware and preferred hypervisor connected through Microsoft Azure Arc. The Azure Virtual Desktop service remains in Azure, while session hosts can be deployed anywhere on-premises Azure Arc-enabled servers are supported. Users can access their desktops through the familiar Windows App.
This matters because it gives customers a phased, lower-risk path to cloud adoption:
- Modernize legacy VDI environments at their own pace, preserving investments in datacenters, hardware, and operational tools.
- Adopt cloud-managed desktops incrementally, with a clear path to migrate session hosts to Azure when the time is right.
- Keep existing partner integrations for virtual machine management and provisioning.
In other words, customers now have a way to bring the simplicity of cloud-managed desktops to workloads that still need to live on-premises. Azure Virtual Desktop Hybrid is available to customers with an Azure subscription as part of the public preview. For instructions on how to get started with the Azure Virtual Desktop Hybrid public preview, please visit this link. You can also learn more about Azure Virtual Desktop Hybrid by contacting our launch partners LoginVSI, Nerdio, and Nutanix.
A complete Windows cloud portfolio for every scenario
Windows 365 was built on a simple idea: the familiar Windows experience, securely streamed from the Microsoft Cloud to any device, anywhere. Azure Virtual Desktop was built to give organizations the power and customizability of cloud VDI on their own terms. Together, these Windows cloud solutions are how Microsoft supports the full breadth of how people work.
A 20% list price reduction makes Windows 365 Business a better fit for the SMBs it's designed for. And renaming Windows 365 Frontline to Windows 365 Flex reflects an expanded mission: closing the digital divide for the periodic-use workers who have been left out too often. Public preview of Azure Virtual Desktop Hybrid brings cloud-managed VDI to environments that need to stay on premises.
Different audiences. Different segments. Different starting points. One portfolio that expands to meet their needs.
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