Azure Virtual Desktop Outperforms Traditional RDS Licensing on Azure VMs

Sage Partners that deploy Sage 200 had limited options considering the ever changing technology landscape. Either maintaining expensive on-premises infrastructure or by using Remote Desktop Services (RDS) on Azure VMs that increase the initial licensing costs. While functional, these approaches come with significant limitations in cost, scalability, and management overhead.

When deployed on-premise, Sage 200 is installed on a company’s own servers and IT infrastructure. This approach offers control over data security, customization, and system performance, making it ideal for organizations with strict compliance requirements or those preferring in-house management. The on-premise deployment involves setting up dedicated hardware and configuring databases.

While this approach has been evolved by deploying Sage 200 on cloud VMs to bridge the technology gap, but lacked scalability without increasing initial licensing costs.

Understanding the Limitations of RDS Licensing on Azure VMs

Traditional deployments using RDS licensing on Azure VMs introduce several challenges:

Licensing Complexity and Cost

• Requires purchasing and managing RDS CALs
• Inflexible scaling leads to over-provisioning

Performance Bottlenecks

• Shared server environments create "noisy neighbor" issues
• Inefficient profile management impacts user experience

Management Overhead

• Manual scaling operations required
• Limited native monitoring capabilities

Security Concerns

• Traditional RDP ports remain vulnerable if no VPN solutions are in place.
• Limited identity integration options

Azure Virtual Desktop based deployment

Azure Virtual Desktop represents a business efficiency shift, offering a purpose-built solution that eliminates the complexities of traditional RDS licensing while delivering superior performance, security, and cost efficiency. For Sage partners, this transition isn't just about technology - it's about delivering transformative value to clients while future-proofing their service offerings.

Modern Licensing Framework

• Eliminates need for RDS CALs
• Includes Windows 10/11 multi-session licensing
• Pay-as-you-go consumption model

Performance-Optimized Infrastructure

• FSLogix profile containers for instant login experiences and SSO possibilities.

Integrated Management Plane

• Native Azure AD integration
• Built-in monitoring and diagnostics
• Automated update management

Enterprise-Grade Security

• Entra ID Conditional Access policies
• Always-encrypted connections
• Microsoft Defender for Endpoint integration and upselling possibilities.

Some benefits include:

• 58% reduction in total cost of ownership
• Elimination of RDS CAL expenses
• Significant reduction in management costs

Partner Advantages: Beyond Technology

For Sage partners, AVD adoption creates strategic opportunities:

Service Differentiation

• Offer true cloud-native Sage 200 solutions
• Stand out from competitors using legacy approaches
• Position as modernization experts
• Upselling and packaging possibilities

Revenue Transformation

• Shift from one-time implementations to recurring cloud services
• Offer value-added security and management services
• Develop specialized optimization offerings

Future-Readiness

• Foundation for AI and analytics integrations
• Pathway to Azure-native ERP solutions
• Platform for industry-specific solutions

Deployment Architecture: Best Practices

1. Host Pool Configuration

• Multi-session Windows 10/11 deployment
• CPU-optimized instances for power users
• Separate pools for different departments

2. Storage Optimization

• Premium SSDs for OS disks

3. Networking Design

• Hub-spoke topology for multi-site deployments
• Policies for traffic prioritization

4. Security Implementation

• Conditional Access with MFA enforcement
• Just-in-time VM access

The shift from RDS-based deployments to Azure Virtual Desktop represents more than just a technical upgrade - it's a fundamental transformation in how Sage 200 can be delivered and managed. For forward-thinking partners, this transition offers:

• Cost Reduction: Dramatically lower TCO through optimized licensing and infrastructure
• Performance Gains: Superior user experience with modern architecture
• Security Enhancement: Enterprise-grade protections out of the box
• Business Growth: New service offerings and revenue streams 

Ready to Get Started?

Partners who embrace this shift now will position themselves as leaders in the next era of ERP solutions, delivering unmatched value to their Sage 200 clients while building more scalable, profitable practices.

Please contact your Surestep Ambassador team at This email address is being protected from spambots. You need JavaScript enabled to view it. to assist you with possible guidance around AVD and example deployments.