VDI vs. VM – What Are The Differences Between Both?

The advancement in cloud and virtualization technology has introduced a flood of technical terms that can be overwhelming, especially for business owners and individuals from non-technical backgrounds.

Two such terms are Virtual Desktop Infrastructure (VDI) and Virtual Machines (VMs), which are frequently used interchangeably. This confusion can lead to ineffective IT decisions, impacting performance and cost.  

While both technologies rely on virtualization, they serve different purposes and are built for different use cases. Let’s clarify the key differences between VDI and VM to help you choose the fit for your needs. 

Difference between VDI and VM

VDI or Virtual Desktop Infrastructure is a technology used to create a virtualized environment in which the hardware is segmented into different virtual desktops.

These virtual desktops are hosted on a central server. Instead of giving every employee a separate physical computer, businesses can create a set number of virtual desktops that employees can access remotely. 

For instance, 50 employees might only need 10 virtual desktops, each shared by 5 employees based on their work schedules.

What is VDI?

VDI or Virtual Desktop Infrastructure is a technology used to create a virtualized environment in which the hardware is segmented into different virtual desktops. These virtual desktops are hosted on a central server.

Hence, we can say that VM is a part of the technology that creates complete VDI.

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What are Virtual Machines (VMs)?

A VM or virtual machine is a software machine created when computing resources are segmented into multiple virtual desktops through a hypervisor. The hypervisor segments the physical hardware into different VMs.

For example, you can use VMs to run multiple virtual desktops on a single physical server. Each VM runs independently while sharing the same hardware, allowing businesses to use resources more efficiently.  

One of the applications of virtual machines is to run a virtual desktop.

What are the types of VDI?

VDI is of two types:

Persistent VDI

In this type of VDI, data and settings remain saved even when users log out of the virtual desktops. Hence, it will benefit you if you don’t require to change the settings every day.

However, as it saves all the data, it may require a good amount of storage space, which may cost you more.

Non Persistent VDI

In this type of VDI, data and settings are restored to default when you log out of the system. When you log into the system, you will see the default settings every time. It will be beneficial when there is a huge workforce, and employees keep changing the systems regularly. 

It does not retain your data, and hence it requires less storage space. Non-persistent VDI may become less expensive for you.

Read More about Persistent vs Non Persistent VDI.

What are the types of VMs?

Process Virtual Machines

Such VMs are also known as Application Virtual Machines because they allow a single process or application to run independently of the host computer.

For example, developers always look for simulators (like a Java Virtual Machine) to test and compile their code without disturbing the host computer.

System Virtual Machines

These are the exact replicas of the entire computer system. In other words, by dividing the hardware resources of the host computer, you can create multiple guest computers. You can split the hardware by installing the hypervisor and creating various VMs.

These VMs can have an entirely different OS called a guest OS. These guest OS are entirely isolated, and your work on the guest OS does not affect the host OS.

VDIVM
VDI is a desktop virtualization solution that creates a virtual desktop on any endpoint, giving remote access to users over a secure network. A Virtual machine is software that creates a virtual desktop environment for the user. 
There are two types of VDI environments: Persistent and Non-persistent There are two types of VM: Process and system 
VDI is hosted on a virtual machine and allows users to access it anywhere, even on a low-spec device. VM functions as a physical computer, runs operating systems, stores data, and does other computing functions. 
VDI can be hosted either on-premises or on cloud servers.  VM is created with the help of virtual resources from the physical computer and runs on a dedicated amount of CPU, memory, and storage 

Advantages of VDI 

Let’s now explore the several advantages of VDI solutions:

A. Remote Flexibility 

VDI enables users to securely access their desktops and applications from anywhere, using any device. Whether employees work from home, the office, or travel, they can easily pick up where they left off without interruptions, providing consistent work experiences across locations.  

B. Cost-Effective 

VDI reduces hardware costs, allowing businesses to use inexpensive devices instead of traditional computers. It minimizes the need for high-speed internet or expensive network connections at branch offices. 

Additionally, VDI minimizes IT management costs by centralizing updates, security patches, and desktop management, all from one central location.  

C. Enhanced Security 

VDI keeps all data on central servers instead of end-user devices, preventing data loss or unauthorized access. It allows businesses to access sensitive data and resources only to legitimate users. Thus, if a device is compromised, VDI isolates it to prevent further damage.  

D. Complete Control 

Businesses have complete control over the desktop environment with VDI. IT can lock down devices, restrict access to specific applications, and centrally manage virtual desktops. It allows you to make updates and monitor consistently, ensuring compliance with company policies. 

E. Performance and Scalability 

VDI improves performance by shifting computing power to the central server, offering faster and more reliable access to applications and data. It easily scales to meet business needs, allowing IT to set up new desktops as the organization grows quickly. 

Limitations of VDI 

A. Performance Limitations for Power Users 

VDI uses shared infrastructure, which may not support power users (e.g., CAD, Photoshop, gaming). Businesses may need specialized resources like GPUs to handle demanding tasks without affecting others. 

B. Dependence on Internet Connectivity 

VDI requires an internet connection to work. Users without network access cannot perform tasks, which can be problematic for those who need to work offline. 

C. Costly for Small Organizations 

VDI can be costly for smaller organizations, as the price per user decreases only with a larger user base. 

D. Increased Bandwidth  

VDI may require higher bandwidth at the central location to support everyone using the same connection if users access cloud systems directly from home. 

Advantages of Virtual Machines (VMs)

A. Save Time and Money 
 
VMs reduce the need for multiple physical machines, saving money on hardware, electricity, and maintenance. You can also quickly create or remove VMs as needed, saving time when testing or setting up new systems. 

B. Isolation 

Each VM runs in its separate environment, keeping applications, updates, or issues contained. If one VM is compromised or fails, it doesn’t affect others. Thus, this makes it safer for tasks like malware analysis or running conflicting software versions. 

C. Optimized Performance and Flexibility 

It lets you allocate CPU, memory, and storage based on your business needs. You can easily optimize performance for work, development, or gaming and scale resources up or down. 

D. Cross-Platform Compatibility 

It allows different operating systems (like Windows, Linux, or macOS) to run on a single physical machine. This is ideal for development, testing across platforms, or using software that only runs on specific OS types. 

E. Easy Backups and Recovery 

You can create snapshots of a VM at any point, allowing you to restore it to a previous state quickly if needed. This capability is especially valuable for testing, system upgrades, or failure recovery without impacting other environments. 

Disadvantages of Virtual Machines (VMs)

A. Performance Overhead 

VMs generally run slower than physical machines due to the extra virtualization layer. This can impact performance for resource-intensive tasks like gaming, video editing, or 3D rendering. 

B. Limited Hardware Access 

Some hardware features, such as advanced graphics cards, VR equipment, or specialized peripherals, may not be fully supported or optimized in a VM environment, affecting usability or performance. 

C. Complex Setup and Management 

Configuring and managing VMs can be more complex than using physical systems. Tasks like setting up networking, storage, and resource allocation often require additional technical skills.  

D. Licensing and Cost 

Running multiple VMs may require separate licenses for operating systems or software. This can increase overall costs, especially in commercial or enterprise environments. 

E. Backup and Disaster Recovery Challenges 

While VMs support snapshots, managing backups and disaster recovery across multiple virtual machines can become complex and time-consuming without the right tools and planning. 

Inside VDI: How Virtual Desktops Are Set Up and Deployed?

VDI is a much broader technical term, and it is used regularly in the virtualization space. You can create a VDI in an on-premise environment or a cloud hosted environment.

On-premises VDI

In this, virtual desktops are created from on-premise data centers. Hence, you may need bulky hardware and physical computers to set this up in the office. You and your IT team have to manage all the IT infrastructure in the office.

Cloud VDI

In cloud VDI, virtual desktops are created by a third-party VDI provider on their cloud servers. The provider manages the creation and deployment of the virtual desktops.

How Virtual Machines Are Created?

VMs are created by installing the hypervisor in the host computers. Hypervisors are of two types:

Type 1 Hypervisor

It is created straight on the host computer’s hardware (also called bare-metal) by installing hypervisor software like VMware ESXi. You can install this hypervisor on computers having any CPU, RAM, or storage configurations.

Type 2 Hypervisor

You can install Type-2 hypervisor on an OS like Windows or macOS, also called Host OS. With this Host OS, you can create multiple guest OS. Host OS allows all the guest OS to use the system resources in a shared manner.

What are the applications of VDI?

VDI is a virtualization technology, and it has served companies very well during the COVID-19 pandemic. VDI is projected to grow continuously at 17% CAGR between 2020 and 2026.

Here are some use cases of VDI solutions:

  • VDI technology is in high demand for remote working employees. Many companies have adopted VDI to provide secure virtual desktops to their workforce.
  • When you opt for VDI on the cloud, it offers your employees to work with utmost flexibility, like any time, anywhere access.
  • VDI is used in multiple industries like finance, manufacturing, medical, education, and many more because it is highly secure and reduces business costs.

Recommend Reading: All about VDI, its components, and working.

What are the applications of VM?

VM is a component of VDI, and you can use it in more specific domains of testing, development, and virtualization.

Some of its use cases are:

  • VM is beneficial if you want to learn new operating systems on your existing device. You can run multiple OS on a single OS-like operating Linux on Windows OS.
  • It offers multiple independent platforms for testing and running programs in the same manner as standard operating systems.
  • It is helpful if you want to learn hacking skills, as it keeps your host OS isolated. Hence, it will not affect your primary system.
  • VM is used to create a VDI for an organization. Companies use virtual machines for hosting virtual desktops for their employees.

Organizations use virtual machines as part of the VDI infrastructure, where each virtual machine hosts a user desktop. 

Still Deciding Between VDI and VM?

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Which is Best for Your Business? 

VDI is ideal for large organizations working remotely that need secure, centralized access to desktops. This includes industries like healthcare, IT, finance, education, and customer support centers. 

However, VMs are better suited for software development firms, QA teams, cybersecurity labs, and research institutions that require flexibility to run multiple operating systems, test applications, or isolate environments. Choose the one based on your business needs and IT requirements. 

Ace Cloud Hosting provides cloud VDI solutions tailored to your business. Book our free consultation or start a 7-day free trial today.  

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About Julie Watson

Julie Watson loves helping businesses navigate their technology needs by breaking complex concepts into clear, practical solutions. With over 20 years of experience, her expertise spans cloud hosting, virtual desktop infrastructure (VDI), and accounting solutions, enabling organizations to work more efficiently and securely. A proud mother and New York University graduate, Julie balances her professional pursuits with weekends spent with her family or surfing the iconic waves of Oahu’s North Shore.

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