- Windows 11 migration remains slow as businesses continue to rely on aging hardware fleets
- Dell sees flat PC sales ahead, while server demand shows clear growth
- Memory prices are rising sharply as manufacturers shift resources toward AI-focused components
Dell warns that the switch from Windows 10 to Windows 11 remains far behind expectations.
As part of its latest financial results, the company revealed that the current transition rate is ten to twelve points lower than the pace seen during the previous phase-out of the operating system.
For this reason, Dell expects flat PC sales next year, even though about 500 million PCs cannot run Windows 11 due to hardware limitations.
Slow upgrade cycle across the PC market
Many of these systems remain functional enough that organizations have delayed replacing them, Dell says, a sentiment that appears to be affecting all segments, from desktop computers to smaller systems such as a mini PC.
Dell reported stronger results from its server and networking units as orders for AI-focused systems reached more than twelve billion dollars last quarter.
Revenue from servers and networking increased thirty-seven percent year over year, with demand driven by buyers seeking denser hardware to consolidate aging fleets.
The company said increased memory and storage requirements are pushing up system costs at a time when RAM and NAND prices are high due to manufacturers prioritizing AI components.
Dell plans to rely on supply chain practices developed during the pandemic and during recent tariff changes to limit the impact of these deficiencies.
It told investors that its operating model allows it to adjust prices, change configurations or steer buyers towards alternative products depending on delivery conditions.
The company posted $27 billion in quarterly revenue, an 11% annual increase, and said it expects revenue of $31.5 billion in the next quarter and over $111 billion in fiscal 2026.
Dell said much of that growth is likely to come from server replacements because many customers are still running fourteenth-generation systems.
Its current seventeenth-generation models will replace several aging devices, each of which has a higher selling price due to expanded memory and storage requirements.
Nutanix, one of Dell’s partners, reported year-over-year revenue growth and continued customer movement away from VMware.
Its management said many customers need flexibility in aligning licensing timelines with migration plans.
They also noted that persistent memory shortages could limit expansion efforts, although upcoming integrations with external storage are expected to support wider adoption.
Dell maintains that it can withstand flat demand for business laptops because of its strength in business hardware.
Orders for AI servers reached more than $12 billion for the most recent quarter, while revenue from servers and networks rose 37%, suggesting that demand for computing infrastructure remains strong even as some buyers hold on to legacy systems.
The situation shows that companies may be prioritizing infrastructure upgrades over operating system transitions.
Companies appear to be cautious about broad PC replacements until hardware shortages and cost pressures ease.
Via the registry
How to stay safe
- Limit personal information shared online.
- Monitor financial accounts for unusual activity.
- Use unique, complex passwords for all accounts.
- Verify URLs before logging into websites.
- Be wary of unsolicited messages or calls claiming to be from financial institutions.
- Deploy antivirus software to protect devices from malware.
- Enable firewalls to block unauthorized access.
- Use identity theft protection to monitor personal information.
- Recognize that sophisticated phishing campaigns and AI-powered attacks still pose a risk.
- Efficiency depends on consistent deployment across devices and networks.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds. Be sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, video unboxings, and get regular updates from us on WhatsApp also.
