We have all heard about the chip shortage currently upon us (I’m not talking Doritos here, but semiconductors). Used in everything from servers and PCs to cars and toothbrushes, the manufacturers of those little silicon jewels cannot make them fast enough. Let’s look at some strategies organizations can implement to continue operating at scale despite the prolonged shortage of semiconductors.
When the pandemic first struck, chip manufacturers responded by cutting back production. Within a few months it was evident that consumers were not cutting back on purchases of devices but instead were accelerating their purchases. At the same time, pandemic-related shutdowns around the globe impacted almost every aspect of the chip-manufacturing supply chain, including the manufacturers themselves. Thus, the chip shortage was born.
Currently, chip producers such as Intel are building new fabrication capacity, but it takes time to construct and equip a new facility and the machines that make silicon chips also require chips. Of greater concern is the shortage of labor and trained workers to staff these new facilities. There are reports of training programs with open positions that they are unable to fill. This will affect the pipeline of available trained workers when these new chip fabrication facilities eventually come online.
As a result, we at Med Tech Solutions have seen longer wait times – delays of often months – on deliveries of servers, computers, firewalls, switches, and other electronic devices. This makes it more difficult to onboard new employees who need PCs, add server capacity, and grow a company as we come out of the global pandemic.Â
As the available supply of finished electronics that rely upon chips remains constrained, companies must consider other options. The current forecast is that the chip shortage will last into 2023. What does that mean for you and your company?Â
We have also seen price increases in the available supply of computers and electronics, so you can expect to pay more if you can find the device you want. But that is not your only option. If you are more flexible in the configurations you request (CPU, RAM, disk storage), many more options are available. For instance, consider purchasing used or remanufactured equipment. Another option is to extend the life of current PCs by updating the operating system – Windows 11 began shipping in a phased rollout on October 5 – or refreshing them with a clean install. Look at purchasing hardware warranties to further extend the life of older computers.Â
See More: Global Chip Shortage: Can Cloud Migration Help Avert the Crisis?
Move workloads to the cloud and scale as needed
Another strategy to consider is moving more of your computing needs to the cloud. We “lift and shift†servers from their on-premises location to the cloud on a regular basis. Most on-premises servers run at 20 to 30 percent utilization while cloud-based servers generally run at utilization rates in the range of 50 to 80 percent. By moving workloads to the cloud, you can purchase what you require today and add resources as your needs grow. This is a much more efficient and cost-effective approach than purchasing hardware and resources that you don’t plan to operate for the next five years. New cloud resources can also be added with the click of a button versus having to deal with a supply chain that is short on product and long on lead times.
Remote desktop services (RDS) allow you to run PC workloads in the cloud. RDS has been around for a long time and is a very good way to deliver applications over the cloud to users’ desktops in the office as well as in their home offices. These applications are delivered stand-alone or as part of a desktop session and in a very secure way. Line-of-business applications, enterprise resource planning (ERP), electronic health records (EHR), accounting applications, and many productivity applications can also be delivered in this way.Â
New offerings such as virtual desktops (VDI) allow you to run PCs in the cloud and use an existing (old) PC, Mac, iPad, or any device with a web browser, to access your VDI. Using this approach, a user’s entire desktop can run in the cloud with all the applications and security that they require. Adding a new user requires creating a new user account, assigning them to a desktop, and delivering their logon credentials. Presto! They are now onboarded and ready to work, and they can use any device with a web browser or remote desktop app to log on.
As we all deal not only with the changes wrought by the pandemic, including the challenges and domino effect of the chip shortage, we do have options that provide effective workarounds. You can assess the IT assets you have today and can extend their life, replace what you must, and consider the cloud and all it has to offer.
Do you think the chip shortage is a result of widely oscillating demand and supply curves accelerated by the pandemic? Tell us on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to hear from you!