Looming end of Windows 10 support a challenge to stragglers

With Microsoft planning to end most support for Windows 10 in October, firms that have delayed their upgrades now face a significant challenge as the newest version may require some to replace their old computers. 

Windows 10 was first released in 2015. In 2021 Microsoft confirmed that it would end support for the operating system on Oct. 14, 2025. This means no more software updates, no more technical support and no more security patches. However, this past July, Microsoft announced that it will be extending support for certain Windows 10 users by an extra year via a new Extended Security Updates program, which gives customers the option to continue receiving security updates for PCs and thus extend the use of Windows 10 devices beyond the end-of-support date. This security update-only subscription does not include new features, customer-requested non-security updates, design change requests or general tech support

This is a paid program. Organizations wishing to take advantage of it will need to pay $61 per device to continue receiving security updates. This price then doubles every consecutive year for a maximum of three years for enterprise users (home devices get a maximum of one year). So while Microsoft has given users a brief reprieve, the clock is still ticking, including for accountants. 

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Most CPA firms have been making steady, but slow, progress over the years in upgrading: a December 2023 report from the CPA Firm Management Association said Windows 10 remained the most popular operating system, with 47% of accountants saying the vast majority of their work uses it. Meanwhile, when Accounting Today recently asked major accounting software vendors how many of their users are still on Windows 10, their answers ranged from less than a quarter to a little over half, depending on the company, which means a significant portion of the profession remains on the operating system. 

John Higgins, founder and CEO of accounting tech consulting firm Higgins Advisory, said the degree to which this is a problem for CPAs depends on the firm. Those with access to dedicated IT professionals have been aware of this issue for a while. In contrast, those without technology staff may not even know support is ending. 

"It obviously depends on the firm," said Higgins. "The firms that have the more substantial IT group, especially internal, [as well as ] outsourced IT, they've been ahead of the game. But then you've got a lot of firms that aren't aware of it. … Firms that maybe don't have the depth of the IT resources, they may not be even aware that there is an issue out there with this."  

One complicating factor is that the latest version of Windows 11 has certain hardware requirements that older devices may not be able to meet. Randy Johnston, co-founder and principal at accounting tech consultancy K2, noted that while firms should replace their hardware about every three years, many do not. As a result, a significant portion of practices still use devices from as early as 2020, nearly an eternity in computer time. 

"A lot of firms bought machines at the early part of the pandemic. A lot of them are sitting on machines that are now five years old. They should have probably been replaced anyway, but they weren't giving any trouble, so [firm leaders were] just riding with it. So my best bet is that maybe one-third of machines in the profession have to get replaced," he said. 

While he said the problem is mostly in smaller firms without dedicated IT professionals, it's not exclusively a matter of size. Another area of concentration is firms that relied on their hosting services, some of whom became complacent in their hardware cycling and thus were unaware of this issue. 

"A thing that has lulled a lot of the firms to sleep is if they were using hosting services. If they were using a hosting service, they had gotten to that point that they didn't have to replace machines very much, because everything was centralized in the hosting environment. So they didn't think about their edge device very much. And I don't think there was a lot of promotion from the hosting companies of, hey, replace your computers," he said. 

Even if they were aware, it is possible firms didn't think it was that important to upgrade if the current version of Windows was working fine. Donny Shimamoto, head of accounting tech advisory firm IntrapriseTechKnowlogies, noted that previous upgrades made a much bigger impact than this one and so firms might not have thought it was worth the trouble. 

"[With Windows 7] we didn't have a ton of additional lift, and the security additions were needed and made sense, which is why you saw the adoption come quick. … I'm not hearing the same thing with 11. There isn't as big of a value proposition," he said. 

Regardless of why a firm chose not to upgrade, those that delayed doing so could face increased hardware costs as they cycle out old machines. Brian Tankersley, director of strategic relationships with K2 Enterprises, noted that much has changed since when these firms first bought their devices, not least of which is that supply chains were heavily damaged first by the pandemic, and again by the tariff environment. 

"Now the problem is going to be where you have to buy new hardware, because of supply chains and all the trade stuff that's in flux right now with the current administration. Let's put it this way: It's not as bad as it was during the pandemic for supply chains, but the tariff situation means you may not like what it costs," he said. 

Roman Kepczyk, director of firm technology with accounting-focused cloud services provider Rightworks, noted that one of the more important pieces of hardware for Windows 11 will be a neural processing unit, a type of chip dedicated to supporting artificial intelligence models; prior to their introduction, many devices were relying on graphical processor units, which are used more for rendering graphics. While not strictly necessary for Windows 11, he said that machines without a neural processing unit will struggle with advanced AI operations, especially as the technology advances. 

"We're all fine with writing the emails, writing, responding to inquiries on research and stuff like that. But I think there's going to be a point where the financial analysis capabilities built into Power BI and Excel start making a difference when we're analyzing numerical data and doing true analysis for better KPIs," he said. 

Windows 11 will also require a trusted platform module, a specialized chip designed to enhance security by securely storing cryptographic keys used for encryption and decryption in order to ensure that the operating system and firmware are authentic and have not been tampered with. Unlike the NPU, a TPM is non-negotiable, which may be problematic for those who run old machines, according to Higgins from Higgins Advisory. 

"Even though you may have a good Windows 10 computer, if it doesn't have the proper hardware, it's not going to take the upgrade," he said. 

Tankersley, from K2, said that theoretically someone could try to run Windows 11 without the hardware upgrades, but it may be risky, and generally accounting firms have had a dim view of such risks. 

"They could break Windows 11 working on that old hardware, and there would be nothing you could do about it. … You can go around. There are ways to avoid [the requirements] and still install Windows 11, but if something happens, you are on your own. And being on your own is not a place CPAs really want to be," he said. 

The security implications of doing so, according to Tankersley, were especially relevant. Cyber criminals tend to figure out vulnerabilities quickly, especially for those who run old devices. Unfortunately, those who resist the upgrades or try to circumvent the hardware requirements will likely see increased threats online. So while technically one can avoid the issue, it's probably not a good idea. 

"It's kind of like that streaking scene in Old School, where Will Ferrell goes running naked through the campus. Well, you can do that, but Sunday school may not be the same next morning," said Tankersley.

The Windows 12 gamble

Beyond the hardware cycling concerns, another issue is that Windows 11 is already four years old and it is likely that Windows 12 is not far behind. This means a firm could go through all the trouble of replacing its hardware and upgrading to Windows 11 only to find just a short time later it's already a generation behind. Firm leaders are unlikely to appreciate this.

Therefore, firms that are still on Windows 10 face a choice: Do you start upgrading to Windows 11 now, or do you wait until Windows 12 comes out and skip 11 entirely? Say a firm decides to wait. It may decide to pay the $61-per-device fee to keep getting security patches. If Windows 12 comes out shortly afterward, delaying was not that expensive. If, on the other hand, Windows 12 doesn't come out in 2026 and the firm has still not upgraded its hardware, then it will probably need to stay in the extended service program, which will now cost $122 per device. If somehow Windows 12 continues not to come out and the firm still has not upgraded, those fees will then escalate to $244 per-device. At that point firms may realize it would have been cheaper to just get new hardware.

"It's a blind bet, as opposed to looking at the cards on the table and saying, 'Well, the probability of me getting the next card is this,' where at least you have a little chance," said Johnston, from K2. "It is a complete wild card coming at you. I would much rather have a few cards on the table so I could kind of guess what the next card was, and play the odds right. [But] right now there's no odds maker."

Kepczyk, from Rightworks, said most firms that have not made the upgrade are in wait-and-see mode now. 

"Going to Windows 11 is not going to improve their performance significantly. And so they just say, 'You know what, I'm going to stick with Windows 10 for another year and wait and see until Windows 12 comes out to see if that's going to be significant," he said. 

If Windows 12 is released and stable by next May or June, firms still on 10 will probably skip 11 and go to 12, he added. But if not, firms will probably upgrade to the most current version of 11 and "ride that into the ground just like we're riding Windows 10 into the ground on older PCs." 

Shimamoto, from Intraprise, similarly felt Windows 12 was not as big a concern. First, he noted, Windows 10 came out a decade ago, and so it's probably time to upgrade anyway. As for whether firms will upgrade to 11 soon or wait until 12, he felt it would depend on AI adoption. 

"Part of what they're saying is that Windows 11 is better prepared to support AI, which is also why you need the better hardware, because AI needs good processors. If we see a lot of AI adoption, 12 may not [last] 10 years, maybe three or five years, but that's normally enough for [a firm to cycle out hardware naturally]," he said. 

Tankersley, from K2, felt it was risky to keep delaying hardware upgrades regardless of when Windows 12 comes out. Even if Microsoft were to announce it's available today, it would likely not be ready to be put into a production environment for a midsize or large accounting firm for six months to a year, he noted, as the possibility of major bugs and glitches interrupting workflows creates too much disruption. But this doesn't mean the hardware isn't degrading while waiting for things to stabilize. 

"It's like that old, reliable car that you've had forever, where it all works just fine, until it doesn't. It's like my son's 2013 Highlander: he's driving it today, and suddenly it gets a low battery. And suddenly now he doesn't have power steering, he doesn't have air conditioning, he doesn't have automatic ABS," he said. 

Making the move

It seems that the best time for firms to have done this upgrade is "a few years ago," as those who saw this upgrade coming and prepared accordingly reported little to no issues in making the switch. 

Hrishikesh Pippadipally, chief information officer and partner with Top 100 firm Wiss, was surprised there were still firms that hadn't made the upgrade, as Wiss had completed theirs in 2022. He said the process was very smooth with no real issues. When asked about hardware cycling, he said the firm follows a three-to-four-year laptop recycle policy and so all devices were already compatible. 

The process followed the same one the firm uses for any software upgrade. First, Wiss validated with core vendors that it was compatible with their existing hardware and software. Then, once there was a green light, the firm piloted the upgrade with a core group of 10 to 15 people and later slowly introduced the upgrades in batches. Finally, once a critical mass was reached, it then established a cutoff date for everyone else to upgrade. 

"We never do full blown because there's ample time to gather the feedback and try to adjust if there are any hiccups or there are bugs or fixes to be made," said Pippadipally. "We do it progressively and iteratively. I think we were probably done by the end of '22."

Shayna Chapman, the head of Ohio-based Shaynaco LLC, said her firm also upgraded two years ago. She noted that, as a small practice, the hardware considerations were not as large because the firm manages fewer than 10 devices total, and is completely cloud-based. She said the firm got a new computer that ran Windows 11. After some time of letting the staff "hang out a bit on Windows 10," they decided it was time for everyone to upgrade, which went seamlessly. 

"We just hit the button and went. We literally hit the button," she said. 

To be extra safe, Shaynaco also hired a technology consultant to oversee the upgrade and make sure all the other devices still worked, which they did. Tankersley, from K2, said it would be a good idea to enlist outside help if a firm had any uncertainties about the upgrade. 

"Just like we audit financial statements of clients and we check tax documentation that people give to us, it's always good to have somebody looking over your shoulder when it's mission critical like this, and that's where consultants can help."