Microsoft trims cloud desktop pricing, even as it boosts AI costs

"Microsoft has reduced pricing for Windows 365 and AVD in select configurations by 20%. This price cut particularly benefits persistent desktop deployments and lower-tier virtual machines commonly used by task workers and call centers."

"The company is introducing an on-demand start experience that allows Cloud PCs to hibernate when users disconnect, lowering infrastructure costs while preserving performance when sessions resume."

"Microsoft is promoting new autoscaling and power management features in AVD, where unused instances will now shut down automatically, addressing the cost of idle capacity."

"Despite the price cuts for DaaS, Microsoft 365 costs are set to rise in July, with a per desktop price increase of up to 33%, raising concerns about the perceived value of new AI features."

Microsoft is transitioning users from desktop Office and Windows to Microsoft 365, Windows 365, and Azure Virtual Desktop (AVD). The company has reduced pricing for Windows 365 and AVD by 20% for certain configurations, particularly benefiting task workers. Bundled discounts for existing enterprise agreements and Microsoft 365 subscriptions are also being expanded. New features like on-demand start experiences and autoscaling in AVD aim to lower infrastructure costs. However, Microsoft 365 prices are set to rise by up to 33% in July, raising questions about the value of new AI features.

Read at Computerworld