9 minutes
We have received a quote for the renewal of the virtualization layer. The amount has more than doubled compared to last year, even though no new users have been added and no servers have been replaced. The question that follows is the same for virtually every IT partner in the Netherlands: is there anything we can still do about this?
The answer most organizations expect is no. That’s just how prices are. There’s a poster circulating at gas stations that illustrates the fuel price as a three-layer ice cream cone: the base fuel cost, excise tax, and sales tax. Below it reads: We can’t lower your price, but the government can.
The costs of a remote workstation are structured exactly the same way, but that conclusion doesn’t hold true here. A remote workstation consists of four layers: the endpoint, the hosts with the hypervisor, Windows Server with the associated RDS CALs, and the Citrix licenses. In practice, renewing these layers separately often results in paying twice, because the functionality purchased separately is already included in the Citrix subscription. Unlike with fuel, one layer can therefore replace another in this case.
What exactly make up the costs of a remote workspace?
The price consists of four layers, each with its own supplier and contract date. Imagine a popsicle: the stick at the bottom, with three colored layers above it.
- The end point: the endpoint. The laptop, thin client, or old desktop, along with the operating system running on it.
- The bottom layer: the hosts and the hypervisor. The physical servers and the virtualization software that support everything.
- The middle layer: Windows Server with the RDS CALs required for sessions on a terminal server.
- The top layer: the Citrix licenses, which are used to deliver, secure, and manage the workspace.
In practice, those four renewal dates rarely all fall at the same time. The hypervisor is renewed in March, the Microsoft licenses in September, and the Citrix subscription sometime in between. By then, no one sees the total anymore—and that’s precisely where the cost increase of recent years lies.
What goes wrong if you only look at the total price?
Anyone who looks only at the final amount goes into negotiations, which usually results in a few percent discount on a single tier. Meanwhile, there are three risks involved that outweigh that discount.
Risk 1: You pay twice for the same feature
This is the most common scenario I encounter: a separate workspace manager alongside a Citrix subscription that already includes Workspace Environment Management. A VPN solution that’s renewed annually even though Secure Private Access is part of the subscription—and there are already good reasons to take a critical look at that VPN regardless. Or a load balancer purchased as an add-on to the firewall, even though NetScaler—Citrix’s Swiss Army knife—is already in the environment.
Risk 2: You’re replacing hardware that could last for years
After Windows 10 reached end of support, many organizations began replacing workstations that were still functioning perfectly well from a technical standpoint. On a remote workstation, the endpoint does little more than display a screen and forward keystrokes. With a thin-client operating system such as UniconOS—formerly eLux and Scout—such a machine can simply continue to operate. This saves on acquisition costs, deployment, and waste disposal.
Risk 3: You let the supplier dictate when you consider your options
If the discussion doesn’t begin until the renewal quote arrives, there’s no time left to consider other options. Then you sign the contract, and you’re putting off the decision for another year. Research shows that the market is indeed changing: according to a 2026 CloudBolt study, 86 percent of organizations are actively reducing their use of VMware, and 88 percent are concerned about future price trends. Source: theitvortex.com.
How can you get more out of the licenses you already have?
By checking, layer by layer, what’s already included in your subscription before purchasing anything new. This is where it differs from the fuel poster: one layer can render another layer unnecessary. We’ve previously written in more detail about optimizing your Citrix licenses.
How does XenServer fit into your Citrix license?
XenServer is an entitlement within Citrix for Private Cloud, Citrix Universal Hybrid Multi-Cloud (UHMC), and the Citrix Platform License. Anyone with such a subscription is, in effect, already paying for the hypervisor layer. Furthermore, it is not limited to your Citrix environment: you may also run your other servers on it, although support for workloads is on a best-effort basis. For Citrix Virtual Apps and Desktops, a Premium Edition is required per socket. Since this entitlement is also included in Citrix for Private Cloud, this option is available starting at ten licenses. Source: citrix.com and docs.xenserver.com. Are you still running on Citrix Hypervisor 8.2, and on top of that, there’s also an end-of-life date to consider.
The management layer
Depending on the license type, Workspace Environment Management, Autoscale, App Layering, Session Recording, and Secure Private Access are already included in the subscription. These aren’t add-ons that need to be sold; they’re features that were agreed to long ago. In many environments, some of these features are simply disabled.
The Endpoint Layer
A thin-client operating system extends the lifespan of existing hardware and simplifies management. This is the layer that’s most often overlooked, even though it’s often where the greatest benefits can be realized per workstation. Since the acquisition of Unicon, Citrix UHMC has also included UniconOS. Unlike the hypervisor layer, that subscription starts at 250 licenses, so this option isn’t available to every organization.
The Microsoft Layer
The same principle applies on the Microsoft side. As of July 1, 2026, new rates will apply to various Microsoft 365 subscriptions, with increases ranging up to tens of percent depending on the license type. These rates won’t take effect until the next renewal date, so many organizations will see them on their invoices for the first time this fall. We’ve broken down the Microsoft 365 price increase by subscription type. Here, too, the first question isn’t how to get a discount, but whether everyone is on the right license and whether you’re paying twice for the same features.
Is it really true that this pays off? Four valid concerns
Isn’t a hypervisor migration way too much work?
It’s real work—there’s no getting around that. Not every workload can be migrated right away. Consider appliances from software vendors that are only supported on vSphere, and the storage configuration that needs to be reevaluated. That takes time, but it’s work that can be planned. And with an alternative on the table, you’ll be having a very different conversation with your current vendor.
If it’s included in my license, why don’t I know about it?
Because the licensing model has changed several times in recent years, and no one actively calls you to let you know what’s been added. It’s in the documentation, but you have to look it up and apply it to your own environment.
Isn’t reusing old hardware a risk?
In a traditional workplace, I would agree with that. In a remote workplace, however, the data and applications are located in the data center, not on the device. The endpoint is then essentially just a window, and a well-managed thin client operating system is often more secure in that regard than an outdated Windows installation.
Does this also apply to fewer than 250 users?
Partially. The hypervisor route does, because XenServer is also included in Citrix for Private Cloud, and there is no minimum requirement of 250 licenses for that. The endpoint route via UniconOS does not, because it’s tied to Citrix UHMC. What remains true for organizations of any size is this principle: check which features you’re paying for twice, whether everyone has the correct Microsoft license, and whether hardware really needs to be replaced.
What questions should you ask before signing a renewal?
Go over these seven points before you sign. You don’t need to hire a consultant to get the most out of them.
- List all four tiers on a single A4 page, including the contract date and annual amount for each tier.
- Find out exactly which Citrix subscription you have and what entitlements it includes.
- Check to see if any software is running that overlaps functionally with something included in the subscription.
- Count how many endpoints you have replaced in the past year and for what reason.
- For each Microsoft user, check whether the subscription still matches their actual role.
- Find out when your next renewal date is and start preparing three months in advance.
- Ask your provider specifically which features you already have but aren’t using.
Why New Yard Starts with the License and Not with the Quote
We provide consulting on the digital workplace, supply the licenses, and handle the implementation. This combination is intentional: consulting without implementation remains just a report, and implementation without consulting becomes a pile of products. Because we understand the setup and management, during an EUC health check we can usually identify within half a day where functionality is being paid for twice or remains unused.
We can have that conversation just as easily about Microsoft as we can about Citrix. The goal isn’t to upsell anything, but to see how much more value can be extracted from what’s already being paid for. Anyone who wants a fresh perspective on this often starts by getting a second opinion on their IT costs.
What are the benefits of a no-obligation discussion about your workplace costs?
It provides insight into which layer has capacity and which does not, and there is a concrete reason not to delay this. On January 12, 2027, extended support for Windows Server 2016—precisely the middle layer of the stack—will end. Source: learn.microsoft.com. An orderly migration requires three to six months of preparation, so now is the time to start.
If this involves an extension of the virtualization layer or a Microsoft renewal, those are three decisions you’re better off making all at once rather than separately. Schedule a no-obligation introductory meeting at newyard.nl. We’ll walk you through your current setup layer by layer, and afterward, you’ll know exactly where you stand.