UK Overtakes US in Desktop-as-a-Service Adoption

Nerdio is urging MSPs to grab a share of the booming desktop-as-a-service (DaaS) market with the release of its new research.

Christine Horton, Contributing Editor

June 12, 2024

3 Min Read
Desktop as a service research
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The U.K. has surpassed the U.S. in desktop-as-a-service (DaaS) adoption, according to new research from Nerdio.

The survey shows that 76% of U.K. IT leaders say both cybersecurity and carbon emissions are fuelling the switch.

In the U.K., 82% of organizations now use virtual desktops, with 42% opting for cloud virtual desktop infrastructure (VDI) or DaaS solutions. Only 12% rely solely on an on-premises setup, and 38% choose a hybrid approach. In contrast, 85% of U.S. companies use virtual desktops, but just 38% report having a fully cloud VDI or DaaS setup.

Desktop-as-a-Service Opportunities for MSPs

Nerdio cited figures that indicate the VDI and DaaS markets will exceed $50.5 billion by 2030. The firm’s CRO, Joseph Landes, said there's an opportunity for MSPs to expand their service offerings and capture a share of the booming market.

“As organizations move from on-premises solutions to DaaS, MSPs can position themselves as essential partners in managing this transition,” he said. This includes “offering expertise, ongoing support and optimisation of these cloud services, fostering long-term client relationships and recurring revenue streams.”

Nerdio's Joseph Landes

“MSPs also have a vital role in enabling businesses to overcome common IT challenges such as cybersecurity threats, the skills gap, and resistance to technological change. By offering comprehensive VDI and DaaS solutions, MSPs can help clients enhance productivity, secure their IT environments, and reduce operational complexities.," he added.

Related:Nerdio to Capitalize On Desktop Virtualization ‘Chaos’

Earlier this year, Landes said legacy desktop virtualization vendors like VMware and Citrix were creating chaos for partners. Their best course, he said, is to chart a course over to Microsoft, with which Nerdio closely partners.

But despite the benefits of VDI, there is still resistance to adopting new technologies among employees and senior leadership, he said.

“MSPs can play a crucial role in facilitating this change by providing education, demonstrating the value of VDI and DaaS, and offering hands-on support during the transition period," said Landes. "Overall, the current state of the VDI space presents numerous opportunities for MSPs to grow their business, differentiate their offerings, and become indispensable partners to organizations navigating the complexities of digital transformation."

Meeting Sustainability Goals

The research uncovered a series of other primary motives for migrating to a cloud VDI or desktop-as-a-service setup:

  • Reducing risk of suffering a data breach – 76%

  • Reducing carbon footprint of the business – 76%

  • Reducing costs – 81%

  • Making flexible working easier – 86%

  • Better productivity – 85%

Related:Nerdio Incorporates Gen AI Into MSP Microsoft Manager

Landes noted that VDI and DaaS significantly enhance remote work capabilities and flexibility. He said MSPs “can offer tailored solutions that support hybrid work environments, which are increasingly becoming the norm.”

Nerdio’s research also shed light on the sustainability value that a cloud setup offers. Fifty-two percent of U.K. IT leaders feel increased pressure from senior management to ensure sustainable IT practices compared to two years ago. Notably, 68% stated that desktop as a service is helping − or would help − their organization meet its sustainability goals. Sixty-seven percent reported that being able to demonstrate a shift toward more sustainable IT practices would even benefit their careers as IT leaders.

It appears, however, that the U.S. currently is more advanced in terms of carbon emission awareness, with 48% indicating that they measure cloud-related carbon emissions and shift workloads accordingly, compared to just 34% in the UK. This is at odds with the trend of Europe leading the rest of the world when it comes to sustainability.

About the Author(s)

Christine Horton

Contributing Editor, Channel Futures

Christine Horton writes about all kinds of technology from a business perspective. Specializing in the IT sales channel, she is a former editor and now regular contributor to leading channel and business publications. She has a particular focus on EMEA for Channel Futures.

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