The end of laptops at work? Desktop as a service is now cheaper and easier to run, reports claim

DaaS could be more effective than laptops for 95% of workers by 2027
Hosted machines are twice as popular as they were in 2019
DaaS spending could grow to $6bn by 2029

New Gartner research has suggested hosted PCs, otherwise known as Desktop-as-a-Service (DaaS), are now cheaper to operate than on-prem business laptops.

By 2027, Gartner expects DaaS to be cost-effective for around 95% of the workforce, up from 40% in 2019, with more users set to use hosted machines as their main workspace as a result (20%, compared with 10% in 2019).

However, for the time being, most organizations only deploy DaaS to a minority of employees to assist with securing remote work. But a growing emphasis on cost, operational efficiency and sustainability could change this.

More companies are considering DaaS

Gartner predicts DaaS spending to grow from $4.3 billion in 2025 to $6.0 billion in 2029, thanks to the fact that the total cost of ownership has now dropped below laptops for many use cases, especially with thin clients.

“DaaS solutions allow remote workers, offshore workers, third-party employees, contractors, frontline workers and office workers to access virtual desktops hosted in the cloud,” Gartner explained.

Microsoft was rated as a top leader, with strengths in digital workplace, cloud and AI, and products including Azure Virtual Desktop, Windows 365 and Microsoft Dev Box.

For Microsoft in particular, Gartner estimates that 60% of its DaaS clients belong to mid-sized organizations (100-4,999 employees), with larger companies (5,000+ employees) accounting for 30% and just 10% coming from smaller orgs (up to 99 employees).

“Gartner rarely speaks to an organization that is planning to deploy a new on-premises VDI solution. Net-new deployments are almost exclusively using DaaS, and on-premises deployments are either migrating to DaaS or moving to a cloud control plane, except for a few land-locked use cases,” the company concluded.

Looking ahead, businesses are now looking into the cost-efficiency benefits of DaaS with scaling opportunities further amplifying the potential savings.

However, as a relatively small portion of the overall PC market that’s in its early stages with limited regulation, there raises some questions around vendor lock-in and licensing complexity, meaning that early adopters could have to put up with headaches until regulators weigh in.