DaaS Pricing: Understanding Cloud Hosted Desktop Costs

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Desktop-based computing is a chokepoint for small, medium, and enterprise-level businesses. There’s complexity in managing resources, ensuring configuration, reducing downtime, and allowing secure access. This means that the IT and admin departments of the business are constantly struggling to keep the computers working.

If this is not the tipping point of IT evolution, what is?

Desktop as a Service (DaaS) is the answer. It is the solution to the challenges discussed above. Whether you need better uptime, reliable systems, or BYOD policy, DaaS offers a simple medium for this change.

However, the pricing model of DaaS is still unclear. The idea of spending too much money on cloud technology stops various businesses from adopting this solution. Therefore, we have explored DaaS pricing in this article, read on and evaluate the factors that impact the pricing model of DaaS.

Evaluating TCO of DaaS

Multiple factors contribute to the total cost of Desktop as a Service. We have discussed a breakdown of some of these categories.

  1. Endpoint

The first category of costs is the endpoint. In DaaS, endpoint costs are minimized. You can enable BYOD policy to allow new hires or work from home employees to use their own devices. If not that, then it is possible to use PCs for longer without worrying about outdated configuration in the case of DaaS.

  1. Server

When using DaaS, the cost of servers is not included in your capital expenses. This means that if you were to deploy VDI, servers, and RAM per the virtual desktop would be added to your expense. In DaaS, this cost is still there but minimized. Firstly, because the DaaS provider manages and purchases the cloud servers. Secondly, these servers are being used by several other businesses. Hence, your share of maintenance is minimal, and everything is included in your subscription fee.

  1. Storage

When using in-house storage, your business pays the cost of hardware and security. It is necessary to understand that whenever you scale the resources, it adds to physical storage somewhere. In DaaS, the DaaS provider takes care of the storage. So, your budget doesn’t include the cost of hardware purchase.

Therefore, you can deduce that in DaaS, the cost of server and storage is only added to your bill to manage these resources. You don’t have to pay for the entire setup.

  1. Software

Software licenses are a significant part of the entire desktop management cost. With multiple in-house PCs, you need to purchase various products (per user charge model), such as Microsoft Office.

DaaS mitigates these costs by allowing you to use one license on multiple virtual desktops, as necessary according to your requirements.

  1. Overheads

Since you are not managing and purchasing servers and VDI architecture, the service provider manages the overheads. Businesses receive DaaS as a managed service at a pre-decided pricing model.

  1. Labor Costs

IT labor costs contribute to a major portion of your expenses in desktop and IT resource management of your office. DaaS eliminates labor costs to some extent by removing various issues.

For example, in DaaS, downtime is not resolved by your IT team. Reputed cloud providers offer 99.99% uptime, which means your virtual desktop is mostly online, and your IT team is not spending time on such activities.

  1. Additional Costs

Some of the costs you will find in your SLA are:

  • Remote monitoring and management of your desktops. The CSP manages and monitors your data and apps around the cloud. So, some of them might charge you for this service.
  • Antivirus is necessary to protect systems from cyberattacks. The cloud uses antivirus for virtual desktops to eliminate the chances of attacks.
  • If you are not bringing your Office subscription or OS subscription to the contract, the CSP may charge for this service.
  • Many CSPs also offer patching services to manage your licenses, software, and hardware. Therefore, they may add the charge of patching and upgrades to your SLA.

DaaS Pricing

If we draw a comparison between office desktops and DaaS, then DaaS pricing helps you save approximately 36%.

When your organization uses office desktops or PCs, IT labor, endpoints, and software costs contribute to your expenses. Here, IT labor costs amount to more than half of your capital expenditure in office PC units, and the rest is taken up by endpoints and software licensing.

Contrary to this, DaaS solutions offer managed services. In this case, endpoint costs can be minimized because you don’t require hardware upgrades frequently, and it is easier to allow BYOD policy. If we talk about labor costs, the IT team is responsible for managing access control and communication flow with the CSP. You can easily manage this with a small IT team in the case of DaaS.

In all, PCs can cost you up to USD 1281, but DaaS costs you only USD 842.

Questions To Ask Related To Pricing When Choosing a DaaS Service

When you are finalizing a DaaS service provider, ask the following questions to understand the pricing model.

Where is DaaS Hosted?

We can get DaaS service hosted on a public cloud or semi-private cloud. Many CSPs use a semi-private cloud, which is a cloud instance in the CSP’s data center. In public cloud DaaS, the service is offered via public cloud service of vendors like HP and Amazon.

Since the cost of the data center is a service inclusion, a semi-private cloud service is costlier than a public cloud DaaS.

Tell Me The Licensing Fee?

In public cloud DaaS, the Microsoft OS fee is in your offering already, making it affordable. A semi-private cloud creates its own virtualization infrastructure. Hence, an additional licensing fee may be incurred in this case.

How Desktop Processing Power Will Impact The Cost?

When selecting a pricing package, businesses can decide their performance package, such as premium, standard, etc. Based on this package, your processing power is differentiated. If you take more processing capability, the cost will increase accordingly.


DaaS pricing depends on the type of configuration and processing power you require for your business. Figure out what type of service, processing performance, and support you need in your organization. Once you have evaluated these factors, read the above pricing factors, understand business needs, and select the right DaaS provider.

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