A Practical Overview of AVD Hybrid Deployment
Azure Virtual Desktop has expanded to support Hybrid workloads, enabling organizations to run session hosts outside of Azure while maintaining centralized management through Microsoft Azure. This capability allows environments to extend into on-premises datacenters without changing how users connect to desktops and applications.
The video accompanying this post provides a walkthrough of how AVD Hybrid works, including architecture, deployment steps, and key limitations that should be understood before adoption.
Understanding the AVD Hybrid Architecture
Azure Virtual Desktop for Hybrid workloads uses Azure Arc to bring external machines under Azure management. Once a machine is onboarded to Azure Arc, it can receive extensions just like a native Azure resource.

A specialized extension called the AVD Cloud Device Extension is used to register the machine as a session host. This process connects the system to an AVD host pool and enables it to participate in user sessions.
After registration, user connections are brokered through the standard Azure Virtual Desktop service. No additional gateways, brokers, or custom components are required. Network features such as RDP Shortpath are supported when network conditions allow it.
Click here for more information on Azure Arc.
Supported Operating Systems and Platform Flexibility
The Hybrid model supports several Windows operating systems with specific requirements. Windows Enterprise client operating systems such as Windows 10 and 11 are supported when running in a virtualized environment, but not on physical hardware.
Windows Server 2016, 2019, 2022, and 2025 are supported on both physical and virtual machines. Multi-session Windows 10 and Windows 11 are not supported outside of Azure, so multi-session deployments require a supported Windows Server operating system.
The platform itself is flexible. The demo uses Windows 11 Enterprise VM’s running on Hyper-V, but AVD Hybrid supports a wide range of hypervisors and environments. This includes VMware, XenServer, Nutanix, Proxmox and others.
Identity and Connectivity Requirements
To participate in an AVD Hybrid deployment, machines must be joined to a directory service. Both Active Directory and Microsoft Entra ID are supported.
Reliable internet connectivity is also required. Systems must be able to communicate with Azure Arc and Azure Virtual Desktop endpoints, including required ports and URLs. Environments using SSL inspection may need to bypass inspection for these endpoints to ensure proper functionality.
These requirements reinforce that Hybrid session hosts are treated more like server workloads than traditional user devices, with expectations for consistent availability and connectivity.
High-Level Deployment Workflow
The video demonstrates the end-to-end process for enabling AVD Hybrid in a controlled environment:
- Validate that required Azure resource providers are registered
- Create a host pool configured for a validation environment
- Generate a host pool registration token using PowerShell
- Onboard machines to Azure Arc
- Deploy the Cloud Device Extension to register session hosts
- Assign users and verify successful connections through Azure Virtual Desktop
These steps show how existing infrastructure can be integrated into Azure Virtual Desktop without requiring a full migration to Azure hosted virtual machines.
Feature Gaps and Operational Considerations
While AVD Hybrid introduces flexibility, it also removes some capabilities available in native Azure deployments. Since Azure Arc operates at the guest operating system layer, it does not have control of the underlying hypervisor.
As a result, features such as autoscaling, Start VM on Connect, and power management are not available. Session host lifecycle operations must be managed by the organization using existing tools and processes. Third-party software companies are also creating tools to bridge the gap left by moving session hosts on-premises.
Additionally, common Azure integrations such as Azure Compute Gallery and automated infrastructure deployment tools are not part of the Hybrid model. Organizations may need third party tools to fill these gaps, especially when deploying and managing deployments at scale.
Use Cases for AVD Hybrid
The video highlights several scenarios where AVD Hybrid provides value. Organizations with existing VDI investments can continue using their hardware while transitioning to a cloud managed model.
Another key use case involves latency sensitive applications. By keeping session hosts close to the application or data source, performance can be improved without sacrificing centralized management through Azure.
These scenarios demonstrate how Hybrid Cloud approaches can balance performance, cost, and modernization goals.
Conclusion
Azure Virtual Desktop for Hybrid workloads represents a significant step toward flexible desktop virtualization. By combining Azure Arc with the AVD control plane, organizations can extend cloud capabilities into virtually any environment while maintaining a consistent user experience.
The video walkthrough provides a practical demonstration of how to implement this model and highlights both its capabilities and its limitations. For organizations evaluating Hybrid Cloud strategies, AVD Hybrid offers a compelling option for bridging traditional infrastructure with modern cloud services.
Links:
Zero to Hero with Azure Virtual Desktop
https://www.udemy.com/course/zero-to-hero-with-windows-virtual-desktop/?referralCode=B2FE49E6FCEE7A7EA8D4
Hybrid Identity with Windows AD and Azure AD
https://www.udemy.com/course/hybrid-identity-and-azure-active-directory/?referralCode=7F62C4C6FD05C73ACCC3
Windows 365 Enterprise and Intune Management
https://www.udemy.com/course/windows-365-enterprise-and-intune-management/?referralCode=4A1ED105341D0AA20D2E
AVD and Azure Arc playlist
https://www.youtube.com/playlist?list=PLnWpsLZNgHzXpNcau7qatZZ4S-TYW2-qc
AVD FQDN and endpoint list
https://learn.microsoft.com/en-us/azure/virtual-desktop/required-fqdn-endpoint
Arc FQDN and endpoint list
https://learn.microsoft.com/en-us/azure/azure-arc/network-requirements-consolidated
Video on coped geographical metadata
https://youtu.be/Ne4DiENXnVA
Link to the code used in the video:
https://github.com/tsrob50/CiraltosTools/tree/main/AVD/Hybrid