The system and method described herein may identify one or more virtual desktop extensions available in a cloud computing environment and launch virtual machine instances to host the available virtual desktop extensions in the cloud. For example, a virtual desktop extension manager may receive a virtual desktop extension request from a client desktop and determine whether authentication credentials for the client desktop indicate that the client desktop has access to the requested virtual desktop extension. In response to authenticating the client desktop, the virtual desktop extension manager may then launch a virtual machine instance to host the virtual desktop extension in the cloud and provide the client desktop with information for locally controlling the virtual desktop extension remotely hosted in the cloud.