Virtual Desktop Infrastructure (VDI) is a technology that allows users/accountants to access and use desktop environments (usually Windows 10 or Windows 11) hosted on centralised servers. These virtual desktops run in virtual machines (VMs) on a central server, and users can access them remotely from various devices. VDI enables centralised management, enhanced security, and consistent performance by hosting desktops in a data centre or a server room within their own office. Crucially this is what differentiates VDI from Desktop as a Service (DaaS), with the latter usually being provided as a service by a third party provider (like C2M) and the former being owned and managed by the organisation itself.
The end product of VDI is almost identical to DaaS but as we will explore in this guide, there are significant cost and uptime implications of attempting to do it yourself, versus outsourcing the technical infrastructure to a specialist.
What is a Virtual Desktop?
Virtual Desktop Infrastructure (VDI) is the desktop virtualisation environment that allows companies (and accounting practices) to host virtual desktops from centralised servers they own themselves.. These virtual desktops operate within virtual machines (VMs) hosted on a central server, typically located in a server room within the organisation itself but also sometimes in a colocation data centre. VDI allows users to access these virtual desktops remotely from a variety of devices, including PCs, macs, laptops, tablets, and smartphones, providing a seamless and flexible computing experience.
In a VDI environment, the desktop operating system (usually Windows 11), applications (such as Sage, Iris, TaxCalc, CCH etc), and data are all stored and run on the central server. This centralisation brings several significant advantages. It ensures consistent performance across all user devices because the computing power is provided by the central server rather than the endpoint device (i.e. the PC or laptop). This means even devices with limited processing capabilities, such as cheap or old laptops, can deliver a high-performance user experience.
Security is another critical benefit of VDI. Because all data and applications run on the server, sensitive information is not stored on accountants’ own devices. This reduces the risk of data loss or theft if a device is lost or stolen. Additionally, centralised security policies and updates can be applied uniformly and consistently, ensuring that all virtual desktops are protected against the latest threats.
From an IT management perspective, VDI simplifies the administration of desktop environments. IT administrators can manage, update, and troubleshoot all virtual desktops from a single, centralised console. This reduces the time and effort required to deploy updates and patches, configure settings, and monitor system performance. It also allows for faster provisioning of new desktops, as virtual machines can be quickly cloned and customised to meet specific user needs – i.e. a partner may require access to all folders and applications while a junior associate would have access only to the files and software they needed to carry out their specific role.
VDI also supports diverse work styles and remote work scenarios. Users can access their personalised desktop environment from any device with an internet connection, making it easy to switch between different devices without losing their work or settings. This flexibility is particularly valuable to accountants in today’s increasingly mobile and remote work environment, enabling staff to work from anywhere while maintaining access to their full desktop environment.
In summary, Virtual Desktop Infrastructure (VDI) is a powerful solution that centralises desktop computing resources, providing consistent performance, enhanced security, and simplified IT management. It enables users to access their desktop environments from any device, supporting flexible and remote work while ensuring that data and applications remain secure and up to date.
How do Virtual Desktops work?
As mentioned in the What is DaaS guide the basic framework of Virtual Desktop Infrastructure is made up of:
- Cloud storage
- Virtualisation infrastructure
- Network connectivity
- Endpoint devices
The key technical difference between VDI and DaaS is that the hardware that makes up the cloud storage and virtualisation infrastructure is owned and managed by the end client. This hardware is usually stored in a server room on premise (i.e. within the office of the accountancy practice) or in a specialist facility called a ‘Colocation Data Centre’, which rents out rackspace for customers to store and run their servers.
Pro’s and Con’s of Virtual Desktops:
Virtual Desktop Infrastructure (VDI) offers a range of advantages and disadvantages that accountancy practices must consider when evaluating whether it’s right for them. Here’s a detailed look at the pros and cons:
Pros of Virtual Desktop Infrastructure
- Centralised Management:
- Simplified IT Management: IT administrators can manage, update, and troubleshoot all virtual desktops from a central console, streamlining administrative tasks.
- Uniform Security Policies: Security measures and updates can be uniformly applied across all desktops, reducing the risk of vulnerabilities.
- Enhanced Security:
- Data Protection: Data and applications live on centralised servers, minimising the risk of data loss or theft from endpoint devices such as laptops or tablets.
- Controlled Access: Access to sensitive data can be tightly controlled and monitored, enhancing overall security.
- Cost Efficiency:
- Hardware Utilisation: VDI can extend the lifespan of existing hardware by using thin clients or repurposing older devices (even 8 year old laptops!).
- Reduced Downtime: Centralised management reduces downtime associated with troubleshooting and fixing individual desktops, especially if the hardware is stored in a Tier 3 colocation data centre.
- Flexibility and Mobility:
- Remote Access: Users can access their virtual desktop from any device with an internet connection, supporting remote work and BYOD (Bring Your Own Device) policies.
- Consistent Experience: Users have a consistent desktop experience across different devices, as their desktop environment is centrally managed.
- Scalability:
- Easily Scalable: VDI environments can be scaled up or down based on organisational needs, allowing for quick provisioning of new desktops.
- Disaster Recovery:
- Improved Resilience: Centralised data storage and backup solutions make it easier to recover from hardware failures or other disasters.
Cons of Virtual Desktop Infrastructure
- High Initial Costs:
- Infrastructure Investment: Significant upfront investment is required for servers, storage, networking equipment, and VDI software licenses. This is especially true if you aren’t purchasing new hardware all the time and don’t have a competitive VAR (Value Added Reseller) getting the best prices for you.
- Licensing Costs: Licensing fees for VDI solutions and virtual desktop operating systems can be substantial.
- Complexity:
- Implementation Complexity: Setting up a VDI environment is complex and requires highly specialised knowledge, which can be a barrier for some organisations if they don’t have a large and experienced IT team.
- Ongoing Maintenance: Continuous management, monitoring, and maintenance of the VDI infrastructure are necessary to ensure optimal performance. Again, this kind of 24×7 monitoring is challenging for any organisation without a large dedicated IT team.
- Performance Issues:
- Network Dependence: VDI performance heavily depends on network connectivity and bandwidth. Poor network performance can lead to a suboptimal user experience. This is especially true if the VDI is stored on premise and doesn’t have access to at least two physically diverse fibre connections (as most data centres do).
- Resource Contention: If not properly managed, multiple VMs sharing the same server resources can lead to performance bottlenecks.
- User Experience:
- Latency: Users may experience latency, especially if accessing their virtual desktop over long distances or with slow internet connections. Users accessing the VDI from an on-premise setup will have a low latency experience, but the same may not be true for users in satellite offices or people working from home (WFH)
- Limited Customization: Some users may find the standardised desktop environment limiting compared to the flexibility of a personal desktop.
- Scalability Challenges:
- Resource Management: As the number of users grows, managing and balancing the server resources to ensure consistent performance for all users can become challenging.
- Cost of Scaling: While VDI can be scaled, scaling up can be expensive due to the need for additional server capacity and storage. Again, this is especially true if you are storing your VDI hardware on-premise and have limited space and power to expand your server real estate.
- Vendor Lock-In:
- Dependency on Providers: Organisations may become dependent on specific VDI vendors for support, updates, and future development, which can limit flexibility and increase costs over time.
Cost Analysis and ROI of VDI
Implementing Virtual Desktop Infrastructure (VDI) involves both initial setup costs and ongoing operational expenses. To determine its financial viability, it’s essential to perform a comprehensive cost analysis and ROI calculation.
Initial Costs
The initial costs of setting up a VDI environment are substantial. These include investments in hardware, software, and implementation services. Hardware costs include the purchase of high-performance servers, which are necessary to host the virtual desktops. Centralised storage solutions, such as Storage Area Networks (SANs) or Network-Attached Storage (NAS), are also required to store virtual machines and user data. Networking equipment upgrades are often needed to handle the increased traffic and ensure seamless connectivity.
Software licensing represents another significant portion of the initial costs. This includes licences for VDI platforms like VMware Horizon or Citrix Virtual Apps and Desktops, as well as operating system licences for the virtual desktops themselves. Additionally, organisations often incur costs for professional services. These services cover the design and implementation of the VDI solution, which may involve hiring consultants or specialised firms. Training costs for IT staff are also a consideration, as they need to manage and maintain the new infrastructure effectively.
Ongoing Costs
Once the VDI environment is operational, there are recurring costs associated with its maintenance and support. Annual support contracts for both hardware and software ensure that the system remains up-to-date and any issues are promptly addressed. The salaries of IT staff dedicated to managing the VDI infrastructure also contribute to ongoing expenses.
Software licensing renewals constitute another recurring cost. These can be annual fees or subscription-based, depending on the vendor’s pricing model. Operational costs include increased power and cooling requirements for the on-premise server room or colocation data centre, driven by the additional hardware. Furthermore, enhanced bandwidth is often necessary to support remote access and the overall increase in network traffic. If the hardware is stored on-premise, additional money should be spent on a secondary, physically diverse fibre connection.
Benefits and ROI Calculation
The benefits of implementing VDI can be significant and multifaceted. One of the primary advantages is reduced hardware costs. By using thin clients or repurposing older devices, organisations can extend the lifespan of their existing hardware and reduce the frequency of replacements. Centralised management of desktops also lowers endpoint management costs by reducing the need for extensive desktop support staff.
Operational efficiency is another notable benefit. VDI simplifies IT management by centralising updates, patches, and new software deployments, thus reducing the time and effort required for these tasks. Enhanced security management is possible through centralised security policies, which mitigate the risk and cost associated with security breaches.
Productivity gains are an additional benefit. VDI supports remote and flexible work arrangements, enabling employees to access their virtual desktops from any device with an internet connection. This flexibility can improve employee productivity and satisfaction. Faster provisioning of new desktops also enhances efficiency, as new hires or temporary staff can quickly be provided with the necessary resources.
To calculate the ROI of a VDI implementation, it’s crucial to estimate the total cost of ownership (TCO) and compare it to the total benefits. The TCO includes all initial and ongoing costs over a specific period, such as three to five years. In this example, suppose the initial costs are £500,000, and the annual ongoing costs are £100,000. Over three years, the TCO would be £800,000 (£500,000 + £300,000).
Next, estimate the total benefits over the same period. If the annual savings from hardware reductions, operational efficiencies, and productivity gains amount to £200,000, the total benefits over three years would be £600,000. The ROI can then be calculated using the formula:
Using the provided figures, the ROI would be:
In this scenario, the ROI is negative over a three-year period, indicating that the costs outweigh the benefits. However, this simplified example may not capture all potential efficiencies and long-term benefits. Larger deployments often achieve better economies of scale, which can improve ROI. Additionally, accurately quantifying productivity improvements and other intangible benefits can provide a more favourable ROI calculation.
In conclusion, a detailed and customised cost analysis and ROI calculation are essential for determining the financial viability of implementing VDI. By considering both the costs and benefits specific to the organisation’s context and needs, a more accurate and informed decision can be made.
Cost advantage of using a DaaS provider over VDI
Desktop as a Service (DaaS) providers such as Cloud2Me offer significant cost-saving advantages over Virtual Desktop Infrastructure (VDI) primarily because of its cloud-based nature and managed service model. One of the most notable benefits is the reduction in initial capital expenditure. DaaS eliminates the need for substantial upfront investments in hardware, such as high-performance servers, storage solutions, and networking equipment, as these resources are provided by the DaaS provider in their data centres. Additionally, the costs associated with purchasing VDI software licences and operating system licences are often included in the DaaS subscription model, thereby reducing the initial financial outlay for the organisation.
Operational cost savings are another major advantage of DaaS. With DaaS, maintenance, updates, and support are managed by the service provider, which reduces the need for a large in-house IT team dedicated to managing the infrastructure. This managed service approach also allows for easy scalability, enabling organisations to adjust their resource usage up or down based on current needs without the associated costs of purchasing additional hardware or software licences. Consequently, the pay-as-you-go model ensures that organisations only pay for the resources they actually use, avoiding unnecessary expenditures.
Moreover, DaaS helps reduce power and cooling costs. Since the DaaS provider hosts the infrastructure, organisations do not incur the additional expenses associated with running and maintaining their own data centres. This transfer of responsibility results in lower operational costs and energy savings for the organisation. The economies of scale that DaaS providers like Cloud2Me benefit from also mean lower overall power usage, which in the long-term is much more environmentally friendly.
The subscription-based model of DaaS also contributes to cost savings by providing predictable monthly or yearly expenses, allowing organisations to manage their IT budgets more effectively. This model prevents over-provisioning of resources, as organisations can easily adjust the number of virtual desktops according to their current needs, minimising resource waste and related costs.
Enhanced productivity and reduced downtime are additional benefits. DaaS providers typically offer high availability and disaster recovery as part of their service, which reduces the need for organisations to invest in and manage their own redundant systems. The robust infrastructure and expertise of DaaS providers like Cloud2Me can lead to decreased downtime and higher reliability, translating into increased productivity and cost savings.
Overall, DaaS provides numerous cost-saving advantages over VDI by reducing initial capital expenditures, lowering ongoing operational costs, and offering a flexible, subscription-based pricing model. The managed service nature of DaaS reduces the burden on in-house IT teams, minimises downtime, and enhances overall efficiency, making it an attractive option for accountancy practices looking to optimise their IT expenditures while maintaining a scalable and reliable desktop infrastructure.
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