Microsoft has launched a public preview of Windows 365 Cloud Apps, offering businesses a way to stream essential applications to users without loading an entire virtual desktop.
App-Only Access Now a Reality
The new feature, announced on 17 September, allows organisations to deliver key Microsoft 365 apps such as Outlook, Word and Teams directly to users via the cloud, thereby removing the need to spin up a full Cloud PC session. Microsoft says the service is ideal for task-based roles where a full desktop adds unnecessary complexity.
“This is ideal for organisations that want to streamline app delivery, reduce overhead, and modernise their virtual desktop infrastructure,” explained Serena Zheng, Senior Product Manager at Microsoft. “Cloud Apps delivers only essential applications like Outlook or Word without loading a full desktop.”
The service is built on Microsoft’s existing Windows 365 Frontline model, which enables multiple users to share a single Cloud PC licence, one active user at a time. It’s a cost-effective approach for sectors such as healthcare, retail and logistics, where staff typically work in shifts and only require access to a handful of cloud-hosted tools.
Streamlined Access, Simplified Management
The big advantage with Cloud Apps is that users can bypass the traditional Windows desktop and launch the apps they need directly from the Windows App interface. Microsoft says it has also introduced new features to improve the experience, including automatic OneDrive launch and a dedicated Windows 365 filter to make navigation easier.
Simpler and More Efficient
The focus is essentially on speed, simplicity and resource efficiency. For example, a warehouse operative may only need Excel and a time-tracking app. Launching just those apps, rather than an entire cloud desktop, reduces bandwidth use, improves performance and shortens login times.
Modernisation
From the management side, Microsoft is trying to modernise how applications are deployed across user environments. For example, at present, administrators must create and maintain custom Windows images in order to deliver internal apps via Cloud Apps, which many see as a process that’s quite outdated and slow.
Microsoft has confirmed it will integrate Intune, its cloud-based device and app management platform, to allow app deployment using Autopilot. This move is designed to eliminate the need for image creation and streamline the rollout of line-of-business software. “We will support Intune’s approach to modern app delivery for Windows 365 Cloud Apps,” said Zheng, confirming the transition is already under way.
Facing Off With Citrix and Omnissa
The launch of Cloud Apps places Microsoft in more direct competition with virtual desktop incumbents like Citrix and Omnissa (formerly VMware’s end-user computing division). These providers have long specialised in app streaming and VDI platforms, often deployed in hybrid infrastructure environments.
Omnissa, for example, used its annual conference this month to unveil tools that simplify the delivery of apps across both physical and virtual endpoints. The company is also branching into automated security, with its AI-driven Workspace ONE Vulnerability Defense platform and support for diverse hypervisor stacks including Nutanix AHV and OpenStack.
While Omnissa focuses on compatibility and openness, Microsoft is doubling down on integration, i.e., linking Cloud Apps tightly to Microsoft 365, Azure, and Intune. This ecosystem-first strategy could be appealing to IT teams already committed to Microsoft environments, but may be less flexible for organisations managing mixed infrastructure.
Limitations and Early Feedback
Although well received during testing, Windows 365 Cloud Apps is not without limitations. For example, critics have highlighted the continued reliance on custom images for deploying internal applications, which remains a pain point until full Intune integration is released. Some organisations have also questioned whether the app catalogue will expand beyond Microsoft’s own software to include more third-party or industry-specific tools.
Licensing is another area to watch. While the shared model in Windows 365 Frontline keeps costs down, it still only allows one active user per Cloud PC. In high-demand environments, this could create bottlenecks if multiple users try to access the same licence at once.
Despite these concerns, it seems that the broader move towards lighter-weight cloud access is gaining ground over traditional full-desktop approaches.
A Strategic Move
For Microsoft, Windows 365 Cloud Apps is more than just a new feature and reflects a strategic rethink about how virtual workspaces are delivered. For example, rather than just assuming that every user needs a full Windows desktop in the cloud, Microsoft is now offering more targeted access options that scale with different workforce models.
This should give Microsoft a competitive edge in environments where Citrix or Omnissa might previously have been seen as the more flexible or affordable choice. By bundling Cloud Apps into its existing ecosystem, Microsoft is making app streaming more accessible for its own customer base, particularly in sectors with large numbers of part-time or mobile workers.
For rivals like Citrix and Omnissa, the challenge will, therefore, be to differentiate on functionality, performance and cross-platform compatibility, especially for organisations that aren’t tied to the Microsoft stack.
For businesses, the appeal is likely to lie in cost control, user simplicity and administrative efficiency. App-only access can also reduce bandwidth demands, simplify onboarding for temporary staff, and help IT teams maintain tighter control over the user environment.
It may also support wider trends such as device sharing, BYOD strategies, and edge computing, all of which benefit from lighter, modular access models.
What Does This Mean For Your Business?
Although still in preview, Windows 365 Cloud Apps appears to be a deliberate move by Microsoft to reshape how businesses think about virtual access. Rather than replicating the entire desktop experience for every remote or part-time worker, it now offers a leaner model that better reflects how many people actually use software in practice. That change is not just technical, it’s operational. It has implications for how organisations design their IT environments, manage their budgets, and support flexible working at scale.
For UK businesses, this could be especially valuable in sectors facing workforce volatility or rising technology costs. Employers in areas like retail, logistics, hospitality, and healthcare may find that app-only delivery offers a more practical alternative to expensive desktop virtualisation. With fewer moving parts to manage, smaller IT teams can focus on delivering exactly what each user needs, without overcommitting infrastructure or licensing resources.
The wider impact will depend on execution. Microsoft still needs to address concerns around deployment complexity, image management, and third-party app support. Intune integration may fix some of these issues, but the service will need to evolve quickly if it’s to meet the expectations of enterprise IT leaders.
At the same time, Cloud Apps puts pressure on VDI competitors to prove the value of their broader platforms. If Microsoft’s tightly integrated model proves easier to deploy, configure and support, it could change buying patterns across the market. For stakeholders managing hybrid or mixed environments, the question may no longer be whether they can live without a desktop, but whether they still need one at all.
