Microsoft introduces PC that has one job: connect users to their computers in the cloud

Microsoft is previewing a new PC that’s designed to connect corporate workers to their programs and files in the cloud.

The Windows 365 Cloud Link is available in limited use in the U.S., Canada and a handful of other countries. It will be for sale in a few markets at $349 in April.

After years spent failing to crack the list of top PC manufacturers with its Surface product line, Microsoft is trying something new in an established category of hardware. In the second quarter, Microsoft said its $1.2 billion in devices revenue was down about 11%, while total PC shipments increased about 2%, according to one estimate.

Early testers have used the devices in call centers and for hot-desking, the practice of temporarily placing workers in available work areas rather than having them stick to the same assigned spots, Jalleen Ringer, product leader for Windows cloud endpoints, told CNBC in an interview.

The device is meant to be simple and secure. It runs a stripped-down operating system called Windows CPC, with no local applications or local users, and has a strict application control policy that can’t be disabled. It automatically downloads updates in the background and installs them at night.

An Intel chip runs inside the computer, which comes with 8GB of RAM and 64GB of storage. Weighing less than a pound, the puck-like package can be kept on a desk or even mounted behind a PC monitor.

The release comes three years after Microsoft introduced Windows 365, which gives employees access to their custom virtual desktops on any device. Desktop virtualization, including an earlier Microsoft product called Azure Virtual Desktop, took off after the start of the Covid pandemic in 2020, with workers stuck at home.

In July 2023, Microsoft CEO Satya Nadella said Azure Virtual Desktop and Windows 365 together generated $1 billion in revenue for the first time in the 2024 fiscal year.

Dell and HP both sell thin client PCs that connect to virtual desktop infrastructure. Organizations can configure them with Windows or proprietary operating systems.

The Windows 365 Cloud Link is a “nice alternative” to thin clients, said Melissa Grant, a senior director of product marketing at Microsoft.

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