Cost Considerations

Cost is significant when moving from an on-premise hosted VDI solution, typically based on Citrix or VMware Horizon. It's essential to consider TCO; this is a complex calculation for on-premises compared to cloud cost. You need to include the cost of Hardware (Server, Network, Storage, Backup), Software (VDI Solution, Server licensing, User licensing, Monitoring and Management, Gateways), Facility and cooling, and finally, the operational cost (Managing the server for updates and patches, VDI solution knowledge).

NUDGEIT has implemented VDI as a service and has seen savings of 23-44% over 3 years. Even if you look at the On-Premises king of VDI, Citrix, they have done several studies and come to a stunning savings of 70% moving from on-premises to their Azure-based solution. If you want to read how this is calculated, this is the link Citrix in Azure saves +70% over on-premises.

Are you, as a company, ready to move from a Capital expenditure model to an Operational expenditure model? Most companies already have M365 and Azure or other hosting models, so our vote here is yes. If you want to get a handle on the cost estimate of moving to the cloud, you can use the NUDGEIT VDI cloud assessment service. 

Focus on Core Competencies

Is VDI (DaaS) a strategic component of IT? Can a ‘Special’ tunes VDI deliver a competitive edge? NUDGEIT thinks VDI is like file and email services—you subscribe to and use it. What is essential is the ability to work anywhere securely, as well as the applications you share over application sharing. 

A service provider like NUDGEIT constantly refines its services and finds ways to offer creative solutions to sharing and reducing cost, which requires expertise that few companies have or want to waste resources on. 

Scalability & Flexibility

Two critical parameters—elasticity and agility—underscore why VDI/DaaS is poised for this transition. Elasticity and Agility: One of the most compelling advantages of VDI/DaaS delivered as a service is the ability to scale resources up or down based on demand without needing significant capital investment. With services like Microsoft AVD, companies can quickly provide additional virtual desktop capacity during peak times or adjust to the need to deploy AI-capable virtual desktops – nobody knows what the future will bring. 

The elasticity and agility offered by modern VDI/DaaS solutions like Microsoft AVD prepare them to be delivered as a fully managed service. These capabilities ensure that organizations can scale efficiently and adapt rapidly, meeting the demands of today’s dynamic business landscape while optimizing costs and enhancing operational efficiency.

Access to Expertise

A growing number of VDI service delivery specialists brings a wealth of specialized expertise and dedicated teams focused solely on VDI services. These service providers continuously improve the delivery and widen the offering, supporting not only the classical Desktop as a service but also application delivery and more specialized variations of Virtual Desktop and application delivery. This ongoing commitment to innovation means businesses can rely on service providers to deliver cutting-edge solutions without extensive internal expertise, making transitioning to service-based VDI both practical and advantageous.

This, combined with the challenge of finding and retaining skilled people in specialized areas like Virtual Desktop, Citrix NetScaler, Image provisioning, etc., makes the case that this non-strategic area can be outsourced and consumed as a service. 

Market Dynamics & Competitive Pressure

Market pressures and dynamics are far from uniform, with variations across geographical borders and industry lines. Yet, within Switzerland's unique market environment, especially in transitioning to service-based IT capabilities like VDI, certain overarching trends can be discerned.

The conflict in Ukraine has sent ripples across Europe, manifesting in heightened oil and gas prices due to Russia's pivotal role as a supplier. This scenario has escalated global inflation rates, increased the cost of living, and triggered disruptions in the international banking system alongside supply chain interruptions. These factors collectively contribute to a downturn in production and overall economic output.

On the flip side, Europe is making strides in recovering from the coronavirus pandemic, driven by a surge in domestic demand. Reports from the European Monetary Fund reveal that the latest GDP figures for the euro area have marginally surpassed expectations, with all major economies showing better performance than initially projected in the April 2024 Regional Economic Outlook.

Switzerland's economic fortunes are closely interwoven with Germany, its primary trading ally, which accounts for 17% of Swiss exports. Despite Germany's challenges—it stood as the only G7 economy to shrink last year and is forecasted to be the slowest to grow this year—there are glimmers of hope. The Bundesbank's Monthly Report highlights a slight uptick in Germany's economic output, noting a 0.2% increase in seasonally adjusted real GDP in the first quarter of 2024.

Although each company's competitive scenario is uniquely defined and cannot be broadly categorized, a common thread of intensifying competitive pressure is evident across most industry sectors. The imperative for innovation, swift adaptation, and ongoing enhancement has never been more paramount.

To sum up, while individual companies' circumstances vary widely, the overarching need to streamline costs offers a compelling reason for businesses to explore VDI as a service, as illustrated in this Blog. The potential for cloud VDI savings ranges dramatically from 23% to 70%, underscoring the economic viability and strategic advantage of such a transition.

VDI IT Resource Management

Specialized skills are increasingly difficult to find and retain, especially in VDI engineering and management. Engineers with expertise in Citrix, NetScaler, and image creation are in high demand and short supply. By moving to a service-based VDI, you can leverage the expertise of specialized providers with dedicated teams to manage these complex environments. This ensures optimal performance and security and mitigates the risk of resource shortages.

Can resources be reallocated to boost the company's competitive edge?

Transitioning to a VDI as a service model allows you to reallocate your internal IT resources to more strategic initiatives. Instead of focusing on maintaining and upgrading VDI infrastructure, your team can concentrate on projects that enhance your company's competitive edge. This strategic reallocation can drive innovation, improve customer experiences, and ultimately contribute to the company's growth and success.
Even if I have resources, running a system like a VDI platform requires constant education.

Managing a VDI environment is a more complex; it requires ongoing education and improvement to keep up with technological advancements and security updates. This continuous learning curve demands significant time and effort from your IT staff. By outsourcing VDI to a service provider, you offload the burden of constant education and system improvements. Service providers invest in keeping their teams up-to-date with the latest technologies and best practices, ensuring that your VDI environment remains cutting-edge and secure.

In conclusion, moving to a VDI as a service model addresses critical resource challenges. It alleviates the difficulty of finding and retaining specialized skills, allows for better allocation of internal resources to strategic initiatives, and ensures that your VDI environment is managed by experts committed to continuous improvement. Given these benefits, transitioning to VDI as a service can significantly enhance your organization’s efficiency and competitive advantage.