Microsoft Introduces Cloud App Streaming with Windows 365

Microsoft Introduces Cloud App Streaming with Windows 365
source: gettyimages
September 23, 2025

Microsoft is exploring alternative approaches to virtual PCs, launching a new feature called “Windows 365 Cloud Apps” in public preview. This service allows users of Frontline Cloud PCs—a shared virtual PC environment—to access specific applications directly, bypassing the full desktop experience.

According to Serena Zheng, Microsoft’s senior product manager, this approach is ideal for organizations seeking to streamline application delivery, reduce management overhead, and modernize their virtual desktop infrastructure (VDI). The service enables users to launch essential apps like Outlook or Word without loading the entire Windows desktop, simplifying the workflow for end-users and IT administrators alike.

Microsoft’s aim is to broaden the scope of apps available through Windows 365 Cloud Apps, making it easier for organizations to deploy custom line-of-business applications at scale. Zheng emphasized that Microsoft wants to make app delivery “faster, easier, and more intuitive,” particularly for IT teams managing large, diverse endpoint environments.

This move intensifies the competition in the virtual desktop and application streaming markets, which are currently dominated by players like Citrix and VMware. Notably, Omnissa, a VMware spin-out specializing in end-user computing, announced new developments at its recent conference. It unveiled a version of its App Volumes Manager—designed to manage application deployment—that now operates on physical servers and PCs, signaling a shift toward supporting diverse infrastructure.

Omnissa also expanded into the security arena with the release of “Workspace ONE Vulnerability Defense,” a tool that scans endpoints for vulnerabilities and alerts admins when machines need attention. The company is betting on increased user fatigue with managing various tools to control physical and virtual endpoints, aiming to consolidate management and security solutions.

In addition, Omnissa announced plans to incorporate agentic AI within its security tools by 2025, aiming to automate responses based on vulnerability assessments. The company continues to support a broader range of hypervisors and platforms, including Nutanix’s AHV, Platform9’s OpenStack, Hyper-V, and OpenShift, signaling a strategic move to remain flexible amid intense market competition.

Meanwhile, other industry news includes Citrix adding support for remote Mac access, AWS’s push into cloud-based desktop virtualization, and Microsoft discontinuing its traditional Azure Desktop-as-a-Service (DaaS) offering, citing limited effectiveness in its current form.

With these developments, the landscape of cloud-based endpoint management and application streaming continues to evolve rapidly, offering organizations multiple pathways to optimize their virtual and physical desktop environments.

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