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With the increasing costs of hardware, industries are trying to minimize the expenses they incur by switching to virtualization techniques. The rise of cloud computing, its benefits and popularity has encouraged organizations to resort to the cloud for software, infrastructure and platforms as services, where they pay on-the-go for the resources they have utilized. Because of the proven benefits that virtualization has offered in terms of cutting additional hardware costs, easier maintenance, server consolidation, the data centers of the service providers widely deploy virtualized servers to service the requests from the clients. Desktop virtualization is relatively new and has further helped the industries with cost cutting and has avoided any hassles of maintenance. In this paper, the authors study the impact and performance of desktop virtualization in a cloud by analytically modeling the quality of experience, which constitutes an important parameter in the successful deployment of virtualized desktops. Since latency plays in important role in the performance of a cloud, the authors also propose to use the BWT compression algorithm to compress the data and send across the WAN. WAN optimization using the BWT compression algorithm helps in improving the network throughput, thereby improving the Quality of Experience.