An explosion in demand, coupled with a global pandemic, created the perfect storm that has led to a world-wide shortage of semi-conductor chips – one of the most crucial components of modern-day gadgets.
While there has been some improvements in availability, supply is still outstripping demand, meaning the semiconductor shortage, which first became an issue in 2020, is likely to continue for some time.
With a majority of modern devices and electronics requiring semiconductors, many industries are still struggling to meet strong consumer demand.
CMTG Technical Sales Manager, Nick Hughes, explains the chip shortage all started from the demand for personal computers and devices as the globe worked and attended school from home during the height of the COVID-19 pandemic.
“This surge in demand coincided with global supply chains being impacted by the pandemic as factories reduced production or closed completely as a result of COVID-related restrictions implemented by governments and companies around the world,” he says.
“With global supply chains still recovering, semiconductor chips are likely to remain in short supply in coming months as demand remains higher than ever. We can expect lengthy lead times and huge price increases in hardware to continue.”
Nick notes companies can reduce the impact of the chip shortage on their operations by working with their IT provider to determine their needs beyond the short-term.
“Companies need to be looking ahead and planning out their long-term IT needs so their operations aren’t impacted by the continuing supply bottlenecks,” he adds.
“While equipment prices may be higher currently, the cost of delaying investment in required IT infrastructure could result in an even bigger cost to a company’s bottom line in the future if their IT infrastructure can no longer service their operations, or worse, fails with no backup.”
While forward planning is crucial to ensuring businesses keep operating as supply chain bottlenecks continue, another solution is a wider adoption of cloud computing.
Cloud computing can help companies avoid purchasing hardware components, while still providing the critical infrastructure resources they need to keep their business running now and into the future.
CMTG’s data centre offers high performance data storage and application hosting, private cloud systems and ongoing support to give you peace of mind.
“We see great value in our data centre. CMTG knows the industry’s needs and we look forward to working together to develop specific solutions for our customers,” Nick says.
“The advantages of shifting to a private cloud avoids the need to jump in a queue to purchase and receive physical hardware.
“It also provides peace of mind with CMTG constantly ensuring its data centre is upgraded with the latest technology to meet your IT needs and keep your data secure.”
To learn more how our data centre could be a cost-effective solution for your organisation to expand network infrastructure, improve security, and offer high performance data storage contact CMTG on 1300 002 684.
