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We very much see AVD and Windows 365 as solving different customer needs. AVD will offer flexibility and other benefits while Windows 365 offers easier manageability, deployment, etc.
Scott Manchester
Microsoft
MicrosoftOrganizations may choose AVD for some departments where their needs are best suited with a multi-user or remote app experience where other departments might be better suited with a personal desktop experience at a fixed price. The two services provide great interop and can share much of the same customer side infrastructure (VNETs, AD/AAD, NSG, CA Policies, etc).