Desktop as a Service Pricing: Understanding Its True Cost

Desktop as a Service (DaaS) is a virtual desktop solution that allows companies to host desktops in the cloud, enabling their employees to access their work environments from anywhere, using any device. DaaS is a flexible, scalable, and cost-effective virtual desktop solution. Large enterprises looking to optimize IT spending need to understand all the factors that impact the total cost of implementing DaaS. In this article, we’ll dig into these cost factors,from those directly related to adopting a DaaS solution to the less obvious, and the total cost of ownership.

What is Desktop as a Service?

Desktop as a Service (DaaS) delivers virtual desktops to end users over the Internet through a cloud-based computing solution. Instead of relying on local hardware to run and manage desktop environments, DaaS providers host and maintain the infrastructure in their data centers. This allows users to access their desktop environment, including applications, files, and settings, from any device with an internet connection. 

DaaS provides several different advantages. The first is scalability, as businesses can easily adjust the number of virtual desktops based on their actual needs. A pay-as-you-go pricing model results in cost efficiency and reduces upfront capital expenditure, while the fact that DaaS service providers handle all infrastructure maintenance, updates, and security removes the burden of IT management. In particular, DaaS benefits organizations with remote or distributed teams, enabling their employees to get seamless access to a consistent desktop experience globally.

Key factors affecting DaaS core service costs

Several factors determine what an organization must pay for a DaaS solution’s core service.

Key consideration #1: Number of users

DaaS service costs are directly proportional to the number of users you need to support. The demand for virtual desktops, data storage, and management resources increases commensurately with the number of users. 

DaaS providers employ two main pricing models. Many offer tiered pricing models based on the number of users. Small businesses with fewer employees will have lower costs, while enterprises with thousands of users will face significantly higher costs. Other providers charge per user, meaning costs scale predictably as the organization grows. This pricing model makes it easier to budget based on headcount, though it can become expensive as user needs increase.

Key consideration #2: Performance specifications

The level of performance users require directly impacts costs. For example, users who perform resource-intensive tasks such as software development, video editing, or data analysis will need more CPU power, memory, and storage, which increases the cost. In contrast, users with basic computing needs will require fewer resources and, thus, have lower associated costs. Businesses that need specific configurations, such as high-end GPU support, will often be met with higher costs.

Key consideration #3: Cloud infrastructure

The cost also depends on the cloud infrastructure you choose, whether public, private, or hybrid. Public cloud options are generally more affordable, as computing resources are shared across multiple customers. Private clouds offer dedicated resources and enhanced security, resulting in a higher price tag. Hybrid cloud solutions, which blend public and private cloud services, can offer flexibility but may require more complex management, which adds to the cost.

The location of the cloud infrastructure that powers the DaaS service can also affect pricing. Global businesses that need to deploy DaaS in multiple regions around the globe to ensure low-latency access for employees may incur higher costs because of this requirement.

Key consideration #4: Licensing models

There are two primary licensing models - pay-as-you-go and subscription. The pay-as-you-go model allows businesses to pay only for the resources they use, which is cost-effective for companies with fluctuating usage patterns. On the other hand, businesses with stable, predictable needs may benefit from subscription models, which frequently offer discounted rates for long-term commitments. 

Generally, subscription models offer lower per-user or per-desktop costs for longer-term commitments (i.e., annual or multi-year contracts). Conversely, short-term or month-to-month contracts are usually more flexible but may come at a premium price.

Key consideration #5: Data security and compliance

Industries such as finance, healthcare, and legal require strict compliance with GDPR, HIPAA, or SOC2 regulations. To meet these compliance requirements, businesses that operate in these industries often require additional security measures such as encryption, multi-factor authentication, and monitoring, which can drive up DaaS costs. 

Businesses that need end-to-end encryption, continuous data backup, and disaster recovery services will also see higher costs due to the added security and redundancy features provided by DaaS vendors, which are premium offerings. 

Key consideration #6: Support and maintenance

When evaluating DaaS and getting an accurate assessment of their costs, Service Level Agreements (SLAs) should be a key consideration, as the level of support provided by the DaaS vendor can impact the cost. Basic support plans are cheaper but may only include standard troubleshooting and limited service hours. On the other hand, premium support may offer 24/7 availability, faster response times, and dedicated account managers, but it comes with a premium price tag. A simple rule to follow is that the more comprehensive the SLA, the higher the cost. 

One of the benefits of DaaS is that the providers handle the backend maintenance, such as patching, updates, and system monitoring. While that removes your company's IT management burden, that peace of mind comes with an associated premium. The costs for this maintenance can vary depending on the service level you choose, with more robust, hands-on support costing more.

DaaS costs: Additional factors to consider

While DaaS providers usually offer clear pricing models for their core services, businesses must consider the additional costs of a comprehensive deployment to get a true picture of the total cost of ownership.

Setting up a DaaS environment often involves a one-time implementation fee, which covers the initial setup, configuration, and deployment of the DaaS infrastructure. While some providers include this fee in their pricing, others may charge extra for custom configurations, network setup, or onboarding assistance. Depending on the complexity of the DaaS solution, you may need to invest in training employees to use the new system effectively. Some DaaS vendors offer this onboarding service as part of their standard pricing, while others may offer it for more money.

Customizations and integrations with your existing software, applications, and systems can add to the cost. It’s common for businesses to require seamless access to their core applications within the virtual desktop environment. These applications could include a CRM, ERP, or custom software, and the integration may require custom API development, middleware, or additional licensing fees to ensure smooth integration.

Organizations that use legacy systems or specialized applications that need to function within the DaaS infrastructure may incur customization fees. The costs have a direct relationship with the complexity of the integration – the higher the complexity, the higher the price, as the DaaS vendor may need to develop custom solutions or provide ongoing support for these integrations that go above and beyond their typical SLAs. In addition, custom applications often require ongoing maintenance to ensure they remain operable, which may increase costs and necessitate dedicated personnel.

While many DaaS plans come with a base storage level, businesses often need more than the standard offering. Adding more storage capacity for files, applications, or backups can increase monthly costs. Since cloud storage pricing scales based on the amount of data stored, organizations that require significant storage will incur a considerable expense.

Some DaaS providers, particularly those on public clouds, charge for data egress, which refers to the cost of transferring data out of the cloud to external networks or devices. These charges can significantly impact organizations that regularly move large volumes of data in and out of their DaaS environment. It can also make it difficult to transition away from the DaaS environment without incurring significant egress fees, effectively locking you into the vendor.

DaaS alternative: enterprise browsers

The appeal of DaaS is its flexibility, scalability, and perceived cost efficiency. While the relatively low base service costs offer an excellent argument for its adoption, the actual costs of implementing DaaS and configuring and operating it for your unique environment can balloon the costs beyond the initial estimate. An alternative that offers the same benefits, albeit with a more transparent cost structure, is the enterprise browser. 

Island, the Enterprise Browser, is designed to enhance corporate security and compliance while improving manageability and user experience without slapping you with hidden costs. Here are critical aspects of Island that set it apart from DaaS:

Enhanced security: Island has security features built into the browser to protect its components and implement advanced defensive measures against common threats. These features enhance your company’s security posture.

Compliance and control: You can enforce strict compliance policies directly through the browser. This helps ensure that all browsing activity adheres to the standards you’ve determined and any regulatory requirements that your organization has to adhere to.

Seamless IT integration and management: The Island Enterprise Browser makes integrating into your existing IT infrastructure easy and allows centralized management of updates, browser policies, and security protocols. This capability makes it much simpler to administer your IT policies.

Simplified infrastructure and lower costs: Island could replace and displace multiple tools, including DaaS and VDI, RBI, password managers, VPN, and ZTNA. Replacing these solutions with Island reduces the cost of licensing multiple security and access solutions and simplifies maintenance by reducing the number of solutions you have to support and avoiding the need for additional infrastructure.

Improved user experience: Island’s user interface is familiar since it’s underpinned by Chromium, the open-source browser project that powers the popular Google Chrome browser. Its clean, performance-focused browser experience includes built-in productivity tools such as the Password Manager, Clipboard Manager, and an AI Assistant to improve user efficiency and satisfaction.

Lower costs: Reducing reliance on a DaaS solution and eliminating the need for other tools to fulfill your organization's security and compliance requirements translates to lower software licensing and operational costs.

Better monitoring: IT and security teams have access to advanced monitoring capabilities that provide detailed insights into web activity. This capability, paired with the other tools within the browser, makes it simple to ensure compliance and resolve incidents swiftly.

Island’s Enterprise Browser is the ideal choice for organizations that want to streamline their web and application access securely. Island eliminates the complexity and potentially high costs typically associated with DaaS and offers unique advantages that DaaS by itself simply cannot provide. 

Contact us to learn more about how you can enjoy flexibility, scalability, and cost efficiency for your remote workforce while getting access to a host of security, compliance, and productivity features without any cost surprises.

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