DaaS Becomes Cost-Competitive

In many use cases, DaaS is now cost-competitive with laptops, especially when paired with thin clients.

Gartner had not previously been so definitive in the Magic Quadrant dedicated to this market segment. It did so this year, noting that price becomes an adoption argument, even though secure remote work remains the main motivation.

DaaS continues to be deployed for relatively few employees, even though many organizations use it. The firm still segments its approach into three categories:

• Customer-assembled offerings
  The customer selects the cloud infrastructure, the identity-management technology, and the associated storage. The customer is responsible for configuring and managing the VMs. The provider handles the operation of the chosen components.
• Provider-assembled offerings
  The provider defines most of the solution, while the client focuses on VM management.
• Offers managed by the provider

DaaS offerings delivered by integrators have their own Magic Quadrant (“outsourced managed workplace services”). They are therefore not considered here.

16 Vendors, 4 Leaders

Last year, 16 vendors were ranked. This year there are only 14, with the same four “leaders”: AWS, Citrix, Microsoft and Omnissa.

On the execution axis, which is meant to reflect the ability to actually meet market demand, the situation is as follows:

On the vision axis, which encompasses strategies (commercial, marketing, sectoral, etc.):

As in the previous year, providing application virtualization alone was not enough. Cameyo (Google) thus only earned an “honorable mention.”

AWS, Sometimes Slow to Innovate

Last year, AWS was credited for geographic coverage of its offering, integration of its DaaS Workspaces with its Global Accelerator network service, and its independence across the underlying technology stacks.

This year again Gartner applauds geographic coverage (17 regions for persistent workloads; 15 for pools). It adds the ability to serve multiple industries and the operational capabilities (native monitoring and alerts, integration with ControlUp for DEX, troubleshooting assistance and resource management with Amazon Q).

In 2024 Gartner had flagged the absence of multiseat/multi-session support as suboptimal for covering the lowest-cost use cases. It had also highlighted a tendency for AWS to target its existing customer base, and its relative slowness to innovate compared with the competition.

This latter point remains, illustrated by a lag in options for non-persistent desktops customization. Other weak spots include a marketing strategy that has yet to bear fruit (multiplying channels and influencer outreach) and the technical expertise required to cover complex use cases.

From Bundling to Contract Negotiation, Little Flexibility at Citrix

Last year, Gartner praised Citrix for the extensibility and the degree of configurability of its DaaS. It also noted the solution’s fit for complex use cases, especially those involving on-site workloads alongside the hosted environment.

This year, the observation is broader: the offering can cover more use cases than competing offerings, thanks to its integrations, in addition to the protocol and its own control plane. Citrix also has a solid track record of responding to needs and a roadmap Gartner calls agile. It has recently advanced on networking and cost management.

In 2024 Citrix did not stand out in terms of commercial relations, notably due to a lack of contractual flexibility. Gartner had also reminded readers that direct support was reserved for the largest customers. And that bundling licenses—offered in only two options—posed a risk of underutilizing products. Additionally, Citrix offers few managed services beyond its control-plane (image management, patching, etc.).

This bundling remains a sticking point, potentially expensive unless the included technologies (OS management, analytics, delivery control, etc.) are fully exploited. The same goes for the lack of contractual flexibility: it can be difficult for large customers—who work directly with Citrix—to negotiate terms shorter than three years. Moreover, Citrix offers only limited managed services beyond its control plane.

Azure Windows Desktop or Windows 365? A Not-Simple Compute for Microsoft

Last year, Microsoft stood out for the size and growth—unmatched in this market—and for the quality of its documentation and training resources, paired with consistent messaging about its offering strategy.

This year, Gartner again highlights Microsoft’s market share and brand visibility. It adds the expansion of its hosting infrastructure and the appeal of DaaS for organizations already invested in Microsoft 365 (notably the consolidation of tools deployed).

The coexistence of Azure Virtual Desktop and Windows 365 remains problematic in Gartner’s view. In 2023 he had flagged potential difficulties in reconciling the business models of these two offerings. In 2024 he noted Microsoft’s emphasis on Windows 365, but urged weighing it against AVD and its consumption-based model, which might better serve certain use cases. This year, the opposite question is raised: with AVD proving difficult to configure, one should carefully weigh its cost benefits against Windows 365 in terms of operational simplicity. It is also noted that Windows 365, being managed through Intune just like physical PCs, tends to promote configuration drift.

Omnissa Does Not Fit the XLA Trend

Last year Gartner highlighted Omnissa’s strong position in hybrid deployments, its deep integration with DEX and UEM components, and the alignment of its offering with the health-care sector.

The assessment of fit is still valid, but it is now framed more broadly: the DaaS Horizon solution is suitable for deployments at all scales, especially for clients with hybrid needs. As for the availability of DEX tools and endpoint management, it will benefit those looking for a single provider for both physical and virtual PC fleets.

The split from VMware raises concerns about feature development and the ability to maintain the same level of support, Gartner noted last year. It does not say much less this year. It also notes the absence of XLA (experience-level agreements), contrasting with the market trend.