https://supportpartners.substack.com/p/why-rising-hardware-costs-and-falling

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“Rising hardware costs and falling DaaS prices are reshaping desktop economics. Discover why now is the time for your business to shift to virtual managed desktops for agility and cost savings.”

 

If you have the unenviable task of reviewing and readying your IT budgets, trying to plan ahead for your complex operational needs, now is the time to explore how Virtual Managed Desktops, and cloud computing have evolved to shape the modern workplace. The economics of operating desktops as a service is hitting an inflection point.

For decades, desktop computing economics were predictable: buy hardware, depreciate it over three to five years, refresh, repeat. But that model is cracking under pressure. Rising laptop and desktop prices, driven by escalating chip costs and supply chain volatility, are colliding with a new reality: the cost of delivering desktops as a service (DaaS) is falling, and fast.

According to Canalys PC Market Analysis (https://www.ncnonline.net/global-pc-shipments-grew-3-8-to-255-million-in-2024-canalys/) , global PC prices have surged by 15–20% over the past two years, fueled by semiconductor shortages and increased demand for high-performance components. Meanwhile, Gartner’s Market Guide for Desktop as a Service (https://www.gartner.com/en/documents/4190099) notes that competitive pricing and hyperscale efficiencies are driving year-over-year declines in DaaS costs, making virtual desktops more accessible for a broader range of roles.

Why Does his Matter for Your IT Budget and Your Business?

Every CFO knows hardware refresh cycles are expensive. But the hidden costs, procurement delays, configuration overhead, and lifecycle management, are equally painful. When chip prices spike, those refresh cycles become budget landmines, especially at a time when staffing levels are fluctuating widely.

At the same time, DaaS pricing models are trending downward thanks to hyperscale efficiencies and competitive pressure. The result? For many roles, knowledge workers, contractors, creative teams, the economics now favor virtual desktops over physical devices. And it’s not just about cost. It’s about agility. Scaling up and down on demand is now the smarter way to work from anywhere.

The Agility Imperative

Business agility an imperative for survival in today’s rapidly shifting landscape. Markets shift overnight. Projects scale up or down without warning. Yet most IT teams are stuck in a reactive loop, scrambling to forecast compute and storage needs months in advance.

Here’s the reality: your IT teams have less time to service the business. Manual provisioning and capacity planning consume cycles that could be spent on strategic initiatives. When the business needs desktops and storage on demand, delays translate into lost revenue and missed opportunities. As the old adage goes “Time is Money”.

The Inflection Point

 This convergence, rising hardware costs, declining DaaS pricing, and relentless demand for agility, marks a true inflection point. Organizations that cling to legacy models risk falling behind, not just financially but operationally.

Gartner’s Magic Quadrant makes it clear: Microsoft Azure Virtual Desktop (AVD) and Windows 365 are setting the standard for enterprise-grade virtual desktop experiences. Their integration with Microsoft 365, security frameworks like Entra ID, and global scalability make them the logical foundation for modern desktop delivery. “Microsoft’s position as a Leader reflects the strength of its portfolio, its global scale, and its deep ecosystem integration”.

But even the best technology needs the right operational model and a trusted partner to execute and take the load off your IT resources.

Figure 1 Gartner 2025 DaaS Magic Quadrant

Enter AIR Spaces: Your Easy Button for IT

 AIR Spaces isn’t here to replace Microsoft AVD or Windows 365, it’s here to make them frictionless. Think of it as the orchestration layer that turns complexity into simplicity.

Here’s what AIR Spaces delivers:

  • AI-Driven Automation: Provision and scale desktops on demand, no manual intervention, no guesswork.

  • Self-Service Provisioning: Empower business users to self-provision desktops and storage through an intuitive, easy-to-use portal, eliminating IT bottlenecks and accelerating time-to-value.

  • Hybrid Data Management: Seamless workflows across on-prem and cloud environments.

  • Operational Control: Real-time cost analytics and resource optimization.

  • Business Agility: Desktops and storage ready when your business needs them, not weeks later.

The payoff? IT teams reclaim time for higher-value projects while the business gains the agility to respond to market shifts instantly. No more overbuying hardware “just in case.” No more firefighting capacity issues. Just predictable costs and scalable performance.

The Bottom Line

 The economics of desktop delivery have changed. It’s time to rethink how you enable your workforce, and when 77% of the workforce is set to remain remote or hybrid, that is a large chunk of your hardware all over the place. Security and governance becomes an integral part of your focus.

That is why Microsoft AVD and Windows 365 provide the foundation. AIR Spaces, managed by Support Partners, makes it effortless. Together, they deliver a model that aligns cost, agility, and security with the demands of modern business.

If you are looking for less IT headaches and more time and budget to focus on other tasks, and if we have got you thinking about how this can accelerate your workflows, we are ready and happy to talk you through the options. Click below to book free consultation or send us an email to discover how AIR Spaces can help remove those operational time-blockers, and future-proof your desktop strategy.

Support Partners is a Global Media Tech Company with over 20 years of experience, a Microsoft Partner and Adobe Systems Integrator. We provide Managed Services, Professional Services and Content Intelligence products.

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Bill Baer
Dec 22, 2025 4:31:18 PM
Global Director of Business Development exploring how Cloud and AI transform media workflows, engagement, and business models. Join me for insights on intelligent workflows, innovation, and strategy.

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