We have a small Azure Virtual Desktop deployment for four concurrent users: one session host running Windows Server 2025 Datacenter. The host is joined only to Microsoft Entra ID; there is no traditional Active Directory Domain Services environment. The 120-day RDS grace period has expired, and we need to correct the licensing properly.
The difficulty is that Per-User RDS CAL tracking appears to require domain user objects, while workgroup-style deployments generally support Per-Device CALs instead. However, the licensing terms and Azure mobility considerations seem to make Per-Device CALs less straightforward for this Azure-hosted scenario. We also understand that CAL types cannot simply be changed after purchase.
Moving to Windows 11 Enterprise multi-session would be preferable, but an ERP application is already installed and configured on the server, and the customer may need a separate server or substantial rebuild effort to support that option.
Would Entra Domain Services or a small domain controller be required to use Per-User CALs correctly? Is there another supported way to run Windows Server 2025 with RDP for four users in Azure without deploying AD DS, or is migrating the workload to a multi-session Windows client image the cleanest solution?
4 Answers
Per-Device CALs do still exist, so the answer is not that no CAL can be bought. The important questions are whether the devices and access pattern qualify, and whether the chosen license has the required rights for the Azure deployment. Do not assume that Per-User and Per-Device CALs are interchangeable or that a reseller can convert one type later. Get the licensing position in writing before deploying a second VM just for directory services.
The first thing to revisit is whether Windows Server is needed at all. For normal user desktop sessions, Windows 11 Enterprise multi-session is the Azure Virtual Desktop image intended for this use. It supports multiple concurrent sessions and avoids the Windows Server RDS licensing model. The ERP application would still need to be tested and supported on that platform, potentially with user profiles handled through FSLogix.
For only four users, the practical comparison is usually the cost of a small domain service plus administration versus rebuilding the host on Windows 11 Enterprise multi-session. If the ERP vendor supports multi-session Windows 11, that is likely the simpler long-term design. If the application specifically requires Server OS, adding a properly licensed domain service and using the appropriate RDS licensing model may be the least disruptive supported route.
If the ERP genuinely requires Windows Server, this is primarily a licensing and identity-design problem rather than something the AVD agent can solve. Per-User CAL tracking normally needs directory-backed user identities, so an Entra-only, workgroup-style server is not a clean fit. A supported directory service—such as AD DS or an appropriately configured managed domain—may be needed, but the exact CAL and Azure licensing rights should be confirmed with a Microsoft licensing specialist or authorized reseller before purchasing anything.
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