Ready for a tech refresh? Three trends driving IT upgrades

By Mike Hanzel, Managing Director, Wells Fargo Equipment Finance

Laptops. Tablets. Desktop PCs. In an age of virtual meetings, hybrid work, artificial intelligence (AI)—and so much more—it’s nearly impossible to imagine a workday without technology at its core. Keeping employees equipped with the latest PCs is now mission-critical for companies of all sizes and industries. 

At the same time, a technology asset’s lifecycle continues to shrink, thanks to the rapid pace of innovation. Take delivery of a new computer, for example, and within weeks the manufacturer is likely to release a sleeker, more powerful version. Keeping up is a constant challenge for businesses.

Three trends driving demand for new PCs in 2025

Experts anticipate several factors will accelerate PC sales in the near-term. These include:

1. Rapid AI adoption. As generative AI moves mainstream, companies are swapping older hardware, cloud computing subscriptions, and heavyweight servers for PCs with built-in neural processing units (NPUs). These robust desktops, tablets, and laptops that can handle AI workloads with ease. Analysts expect these “AI PCs” to represent nearly half of all PC shipments in 2025—up from just 17 percent in 2024.
   
2. Sunset of Windows 10. The necessity for new operating systems will also spur demand for hardware. Most notably, Windows has announced the end of support for Windows 10 in October 2025. Maintaining current software is a must for organizations to work efficiently, mitigate security risks, and in some cases, maintain compliance with cyber insurance policies. Upgrading hardware and software in tandem can reduce downtime and fast-track staff productivity.  
3. Alleviating post-pandemic shortages. With the semi-conductor shortages and supply chain issues that disrupted IT delivery now resolved, companies are swiftly refreshing their employees’ hardware. Manufacturers, distributors, and other channels partners are once again able to meet customer demand quickly and effectively. PCs that meet the needs of hybrid and remote work environments remain in demand. 

Overall, analysts predict PC sales to grow 4.3 percent in 2025.

New options make IT financing more predictable, flexible, and turnkey

Just as PC sales patterns are changing, there’s an evolution in how organizations finance and manage their employee technology. Rather than working through dozens of manufacturers and resellers—many with their own captive finance programs—more tech buyers are consolidating their spend through a single entity like their bank. 

With this approach, companies can negotiate stronger terms and improve their buying power. Procurement and IT teams can streamline operations by managing just one financing relationship. 

In addition, a bank that’s “tech agnostic” may offer a wider range of financing structures than what’s available with individual OEMs or VARs. This approach increases flexibility and lets each company tailor a solution that’s specific to their goals. 

IT leases reduce headaches and deploy capital wisely

Leasing is another option rapidly gaining traction. Instead of purchasing a PC or other short-lived hardware asset outright, a lease enables companies to match the expected lifespan of the hardware (or manufacturer’s term of support) with the length of the lease. 

Some leases even facilitate extensions, asset returns, or eventual purchases at fair market value. This streamlines the transition to new technology in the future and reduces the hassles of disposal with aging assets. 

One business recently took this approach with Wells Fargo. A global manufacturer moved a number of new technology purchases from manufacturer-specific programs to a single lease with the bank. Their new lease covers more than 4,000 PCs as well as more than $11 million in servers and networking hardware. Their terms ranged from 36-48 months, based on each asset’s lifecycle. 

The manufacturer appreciated Wells Fargo’s established processes and strong reseller relationships, which streamlined orders, invoices, delivery, and payment. 

A master lease with Wells Fargo provided even greater benefit. This structure let the company consolidate a variety of technology assets, vehicles, and production equipment under a single master lease. The manufacturer maximized their IT budget and at the same time preserved operating capital for other business initiatives.

PCs shift from commodity to strategic business asset

With the rise of AI and other innovations, PCs are growing in importance; they’re quickly moving from commodity to competitive advantage. Making your investment in this next-generation technology as efficient, cost-effective, and turnkey as possible is imperative for businesses of all sizes. 

Turning to experienced resources with a range of lending and leasing options is a smart first step.

Please view this graphic (PDF) by Chris Wohlert for more insights