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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Using 'virtual' versions of physical things has become more and more popular in recent years, but what is virtualization, exactly?

In essence, it's the process of turning hardware into a software equivalent without sacrificing functionality, the most common deployment being virtual servers instead of physical servers. It's largely used as a way of saving space, cutting costs, and improving functionality and security.

There's also the added benefit of creating extra capabilities on top of existing hardware. For example, virtualization can be used to take the machine's storage or some of its capabilities and divide them across a number of virtual machines.

What is virtualization?

The best way to think of virtualization is to imagine five physical computers, each running their own isolated operating systems and software services. Each device can work separately on different tasks, but through virtualization, you’re able to unlink each operating system (OS) and its software from each terminal and combine them into one single entity, or ‘host computer’. This can maintain separate software packages and run individual devices if it has to.

Separate virtual software instances are known as virtual machines (VMs) and are managed and coordinated by a single physical machine. This central computer utilizes a ‘hypervisor’, which is a software platform the computer can use to manage resource allocation across each VM. Through this hypervisor, it can share important elements like network bandwidth, memory usage, CPU cycles, as well as other computing resources.

These five computers we've imagined can, through virtualization, be merged into a single combined machine while at the same time preserving their individuality, allowing workers to use them separately.

VMs are particularly handy for testing new operating systems, accessing legacy software and operating systems, creating and testing applications in a separate computing environment, and much more.

VMware is one of the leading providers of virtualization software and technologies, offering Workstation Pro for Windows and Linux users and Fusion Pro for Mac users. Microsoft is another big player in this space, with Hyper-V and Azure Virtual Desktop. Other top VM platforms include Citrix Hypervisor, VirtualBox, and Parallels Desktop.

We have a handy guide on configuring Hyper-V on Windows 10 and 11 if you want to have a go yourself.

Virtualization terminology

Virtual machines (VMs)

Virtual machines are one of the elementary units of virtualization. This is best imagined as an independently functioning computer, except that it lacks a normally expected physical presence. A virtual machine, when deployed, can open an additional operating system on a single device, and that's including its own software.

The VM's working is independent of the host, meaning that it won't be affected if something goes wrong with the hardware used to access it. At the same time, since it's separate, the virtual machine can't influence the running of the 'host' computer.

Virtual memory

To ensure VMs work as smoothly as possible, it's pretty vital there's a high level of virtual memory available on the host computer.

This helps applications to improve overall performance and store and receive data. It's enabled by small additions to a machine's hardware, called segments or pages, that store the extra data a physical machine cannot.

Virtual desktop infrastructure

Virtual Desktop Infrastructure (VDI), is where an organization purchases virtual desktops hosted by a third-party vendor and therefore don't have to deploy the technology on its on-premises infrastructure, lowering its costs and simplifying deployments.

According to Nick McQuire, VP of enterprise research at CCS Insight, the development of Desktop as a Service, or DaaS, has proved very popular.

"Virtual desktops and applications have been trending within enterprise IT for over a decade, ever since the growth in remote working has increased the need for mobile workstations, strongly encouraging many organizations to implement the technology," he says.

"As virtual desktops aren't hosted locally on the users' devices, an organization can distribute stripped-down machines, known as thin clients, with access to company applications and data in the data centre to cut down on hardware costs and simplify management."

Virtual applications

Many of the merits of virtual desktops also apply to app virtualization, which allows users to access apps without storing them locally and businesses to have more control over their usage.

"New uses of the technology have opened up the virtualization of third-party specific applications such as Microsoft's Skype for Business or browsing," McQuire says. "Security requirements and compliance changes such as GDPR have also helped as more firms look for more control and visibility of the apps their employees use."

"As more organizations look to upgrade the 300 million or more PCs in enterprises that are over five years old, they are embracing newer PC platforms. The likes of Google Chromebooks and Microsoft's Windows 10 are growing heavily in the public sector in the US."

What are the benefits of virtualization?

Investing in virtualization technologies offers a wide range of benefits for businesses of all sizes and industries.

Resources

For starters, it can help companies reduce their overall IT spending and reallocate funds to other areas of the business. That’s because you can run all manner of IT resources — such as operating systems, applications, storage devices, and network devices — virtually from a single host computer, rather than purchasing several non-virtualized servers or pieces of hardware.

Resilience

Virtualization is an excellent way of improving the operational resilience of your business. If a virtual machine is damaged or faulty, you can clone it and get it back up and running within minutes. When a physical server experiences issues, you’ll need to get it fixed or replaced. These things will take a significant amount of time and money, eating into valuable business resources and causing downtime.

Security

Virtual machines can also contribute to the provision of robust enterprise cyber security. VMs are isolated by design, providing a safe environment in which to analyze potentially malicious files and processes. This also makes it very difficult for attackers to move laterally across an environment, should a VM become compromised.

Elasticity

Because new virtual machines can be installed, updated, and maintained easily and quickly, businesses can scale up or scale down their IT resources as their needs and requirements change over time. Virtualization technologies are an excellent option for enterprises embarking on a digital or cloud transformation journey.

Centralization

With virtualization, IT departments don’t need to waste valuable time maintaining numerous physical servers. Instead, they can maintain every virtual machine from one virtualized environment and, consequently, experience productivity gains that benefit the entire business.

Sustainability

Owning several physical servers is not only expensive and time-consuming but also bad for the environment because of the amount of power they consume. Migrating to a virtualized computing environment will help businesses consume less energy and ultimately meet their net-zero goals.