Virtualization is the answer to rising hardware costs coming alongside a Windows 11 refresh, according to Citrix.
The firm is pushing a virtualization tool from Unicon following its acquisition of the endpoint operating system (OS) maker in January.
Writing in the Citrix blog, Philipp Benkler — former CEO of Unicon and now the vice president of product at Citrix — suggested the transition to Windows 11 meant companies were facing a hardware refresh at a time of increasing costs thanks to US tariffs.
“IT hardware prices are climbing fast — and they’re likely to stay high,” Benkler wrote. “The April 2025 tariffs are already driving cost hikes, and experts suggest further increases could follow as supply chain pressures and upgrade demands mount.”
The post adds to the growing pile of tech companies openly admitting that the Trump administration is having a negative impact on the American-led industry.
While Microsoft increased the price of its Xbox gaming consoles, it only vaguely pinned the blame on “market conditions and rising development costs”. Similarly, Amazon backed down from listing the specific cost of tariffs on every item it lists.
Others have been bolder, however. Last week, Apple said that tariffs will add $900 million to its costs in the next quarter while Nvidia has said it will incur a $5.5bn loss because of tightened export rules.
Solution to tariffs?
Regardless of who is to blame for rising prices, Benkler said tariffs are leading to “tough choices”, with enterprises considering delaying upgrades, reducing headcounts, or finding novel ways to absorb rising costs.
Benkler said Unicon’s eLux is an OS that uses whatever existing hardware a company has and transforms it into endpoints for virtualized environments, helping companies avoid “the hardware trap”.
“With eLux, you don’t need to rip and replace your IT hardware to stay compliant or ready for Windows 11,” he wrote. “Instead, you can extend the life of your existing endpoints and unlock modern features through our hardened OS.”
On the networking front, Benkler points to Citrix NetScaler, which doesn’t require a physical appliance as the software can be deployed in the cloud or existing data center infrastructure.
“By running NetScaler as software, organizations can expand or optimize network capabilities without the added cost and procurement delays associated with tariff-inflated hardware,” he said.
Whether or not virtualization is the answer, companies face serious implications from Trump’s tariffs, with experts predicting it could cut global IT spending in half over the next six months.
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