As hybrid cloud strategies become the backbone of modern IT, organizations are looking for ways to modernize their digital workspaces without disrupting existing platforms or making large upfront infrastructure investments.
Azure Virtual Desktop (AVD), Microsoft’s cloud-native virtual desktop infrastructure (VDI) service, has long enabled secure delivery of Windows desktops and applications from Azure. Now, its reach is expanding.
Microsoft has announced the limited preview of Azure Virtual Desktop for hybrid environments, a major step forward for enterprises running workloads on-premises.
For Nutanix customers, this marks an especially important milestone: Azure Arc-enabled Nutanix AHV clusters can now function as AVD session hosts, allowing organizations to bring the power of Azure Virtual Desktop directly into their existing AHV environments.
This hybrid capability extends Microsoft’s earlier work with Azure Virtual Desktop for Azure Local and reinforces their commitment to meeting customers where they are—whether in the cloud, on-premises, or operating across both.
Why Hybrid AVD matters for Nutanix AHV environments
Many organizations using Nutanix AHV rely on its simplicity, resilience, and operational efficiency to run mission-critical workloads. At the same time, they want access to cloud-driven innovation: elastic scaling, identity integration, centralized policy management, and consistent user experience.
Azure Virtual Desktop for hybrid environments bridges these worlds.
By enabling AHV-hosted virtual machines to act as native AVD session hosts, customers can:
Extend cloud-based desktop virtualization to existing Nutanix hardware
No need to replace or migrate infrastructure—AVD’s orchestration lives in Azure, while desktops run on AHV.
Standardize user experience and management across cloud and on-premises workloads
Unified identity, policy controls, and connection broker capabilities remain in Azure.
Maintain data residency, performance, and compliance requirements
Keep desktops close to the data while still benefiting from cloud-managed access and control.
Create a flexible landing zone for gradual cloud adoption
Organizations can run AVD on AHV today, while maintaining a seamless pathway to move workloads into Azure when ready.
For CTOs and IT leaders, this hybrid deployment model preserves the value of existing Nutanix investments and aligns with long-term modernization strategies.
AVD + Azure Arc + Nutanix AHV: How it all fits together
At the heart of this hybrid capability is Azure Arc, Microsoft’s platform for extending Azure services to any infrastructure. By onboarding Nutanix AHV servers to Azure Arc, those systems become manageable endpoints within Azure’s control plane.
In this model:
- AVD orchestration, identity, and gateway services run in Azure.
- Session hosts run on Nutanix AHV as Arc-enabled VMs.
- User sessions connect through Azure as if workloads were cloud-native.
This architecture enables organizations to retain on-premises performance and locality while enjoying the operational convenience of cloud services.
Customers can continue using Nutanix’s proven AHV virtualization stack, lifecycle management workflows, and operational tooling—all while layering AVD’s secure remote access and operational consistency on top.
Benefits of Azure Virtual Desktop for hybrid environments
Azure Virtual Desktop for hybrid environments brings Azure Arc, Azure Virtual Desktop, and partner solutions together to create a flexible VDI approach that extends cloud functionality to on-premises infrastructure. For Nutanix customers, this creates a powerful blend of cloud innovation with AHV’s operational simplicity.
By combining these components, organizations can:
Optimize their VDI architecture without restructuring their hypervisor strategy
Build on existing AHV investments while still integrating with Azure services.
Choose their preferred management and lifecycle tooling
Whether through Nutanix Prism or a cloud-aligned partner solution, IT teams can adopt the workflow that best fits their operating model.
Preserve flexibility for future cloud migration
Hybrid AVD becomes a stepping stone—not a detour—on the journey toward Azure-based VDI.
As Scott Manchester, VP of Product for Windows 365 and Azure Virtual Desktop, puts it:
“Customers want the flexibility to create a virtualization environment that maximizes the value of their existing infrastructure while providing a clear migration path to the cloud.
Azure Virtual Desktop for hybrid environments provides a great foundation for customers to run Azure Virtual Desktop on-premises, and when combined with partner solutions, gives customers new options for optimizing their VDI estate.”
A new era for hybrid VDI on Nutanix AHV
For enterprises running Nutanix AHV, Microsoft’s hybrid AVD announcement unlocks a compelling set of options:
• Keep desktops close to sensitive data.
• Maintain ultra-low-latency performance.
• Extend Azure security and management.
• Modernize end-user computing without replacing infrastructure.
This is hybrid VDI built for the real world—where cloud and on-premises are not competing strategies, but complementary components of a unified architecture.
If your organization is invested in Nutanix AHV and exploring modernization paths for end-user computing, Azure Virtual Desktop for hybrid environments represents a significant new opportunity.