Is the Global Chip Shortage Affecting Your Ability to Get IT Hardware? You Have Options.

The global microchip shortage is a big deal. In fact, the global chip shortage is causing all kinds of problems and disruptions for companies, consumers and the economy. The information technology industry is no exception. 

  • May 17, 2021

 

Global Microchip Shortage FAQ - Information TechnologyThe Global Microchip Shortage is Affecting the IT Hardware Space

There are simple and smart solutions to help you avoid supply issues and product delays.

The global microchip shortage is a big deal. In fact, the global chip shortage is causing all kinds of problems and disruptions for companies, consumers and the economy. The information technology industry is no exception. IT professionals from network engineers to CIOs are finding themselves facing challenges sourcing IT equipment, including various kinds of network hardware, business phones (IP phones) and other devices.  

People have several questions about the global chip shortage.

What caused the chip shortage?

What are the effects of the chip shortage?

How long will the chip shortage last? 

How can I avoid the product supply issues and delays?

What if the chip shortage lasts longer than reported?

 

What Caused the Global Microchip Shortage and What Are the Effects? 

The COVID-19 pandemic caused a major spike in demand in microchips as the demand for technology increased with changes in business and our lives, in general. The work-from-home (WFH) trend was a large contributing factor. 

Professionals in the information technology and C-level executives were concerned with business continuity.

IT professionals around the world had to adapt and make all kinds of changes to make businesses operate effectively with the sweeping changes and shutdowns.  

While the auto industry is what is getting the most attention, Goldman Sachs and Yahoo Finance (see graphic & article) say as many as 169 industries could be affected. That means a large number of devices and products affected. For instance, the chip shortage will affect phones, computers, network switches, servers and all kinds of devices that are in demand to keep businesses running well.

Network hardware and IT equipment companies like Cisco and others are seeing their supply chain hit by the chip shortage.  

Therefore, you have IT professionals, companies, and organizations of all kinds looking for IT equipment and finding themselves being told they will have to wait for months.  

How Long Will the Chip Shortage Last? 

microchip shortage worldwideAs articles and updates are provided from day-to-day, there are reports that the shortage may continue from six months to two years. Even Cisco, which has the large portion of the networking market, has stated that the chip shortage may go on for quite some time. 

According to an article by Yahoo Finance on March 30th of 2021, Cisco CEO, Chuck Robbins, stated that the chip shortage could last a couple of years. More recently, Chuck Robbins commented that the shortage may last six more months to get over the short term affects, and as adaptations are made by chip companies to help fill the demand it will get better over 12 to 18 months. This is according to a BBC article on April 25th.  See Mr. Robbins statement - video clip.  

“Mr. Robbins is the latest tech boss to weigh in on the debate - and with 85% of internet traffic using Cisco's systems, his opinion matters. 

"Right now, it is a big problem," he says, "because semiconductors go in virtually everything." 

The seemingly insatiable demand is why major US manufacturer Intel announced a $20bn (£14.5bn) plan to significantly expand production, including two new plants in Arizona.” 

How Can You Get IT Hardware in Days, Not Months? 

There is a smart, practical, cost-effective solution.

All of this begs the question for those in the IT world. What Options Do You Have to Get IT Equipment Without the Long Delays? 

The problem with the chip shortage is that original equipment manufacturers (OEMs) such as Cisco, are having difficulties producing and distributing new products to customers because of the chip shortage.   

A Smart Solution to the Chip Shortage for IT Hardware Needs 

There is a simple alternative that allows companies and IT professionals to get the network hardware and other IT equipment they need in the matter of days, not months.  The alternative is turning to leaders in the secondary IT hardware market for reliable equipment and solutions.  

For instance, network switches are one kind of device that is affected by the microchip shortage. IT professionals who need solutions now are facing delays for months.  However, the leading secondary-market IT equipment companies have huge inventories of network hardware like Cisco switches, IP phones, and equipment of all kinds.  The largest of the companies providing top quality pre-owned IT hardware carry millions and millions of dollars of ready-to-ship inventory in large warehouses in different locations.  With all of that equipment on hand and ready to ship, they can solve problems for a lot of organizations from SMB to Fortune 500 companies.  

With long-standing track records of high reliability ratings, ISO quality processes, lifetime warranties, and product experts to ensure you are getting everything you need, this is a solid answer to the chip shortage.  Furthermore, leading secondary market IT hardware providers offer hardware maintenance options as alternatives to the OEMs that allow you to manage your equipment based on your needs and desired refresh cycles.  

Think Ahead. Avoid Chip Shortage Uncertainty.  

If the major changes caused by COVID-19 have taught us anything, it is that difficult times sometimes come out of nowhere. Being prepared for times of uncertainty can make a huge impact on your organization. As the old saying goes, it is better to be safe than sorry.  

While experts are providing updates daily, there is no guarantee the chip shortage will end according to the predictions. Since there are smart solutions to your IT hardware challenges during the global microchip shortage, you may want to consider planning ahead.   

Try to anticipate any needs or demands for your organization. Talk with business units and executives. See what might be happening in the coming 12 to 24 months for your organization that may affect your IT hardware needs.  

Being armed with that knowledge, you can speak with leaders in the secondary-market for IT hardware to find solutions for all your hardware needs without facing the challenges and delays of the chip shortage.  


Related Articles:  

Global chip shortage hits Cisco supply chain (IT Pro)

The Global Chip Shortage Is America’s Wakeup Call (forbes.com) 

Chip shortage is starting to have major real-world consequences (npr-news.com) 

Chip shortage highlights U.S. dependence on fragile supply chain - 60 Minutes - CBS News 

Want a smart, cost-effective solution to avoid IT hardware delays caused by the global microchip shortage? Drop us a line.