Preparing for “Chipageddon” – Having Smart Options

For the past two months, IT news sources have cautioned that this chip shortage (semiconductor and DRAM memory) will have substantial impact across multiple industries, impact supply & demand and new hardware/tech purchases. Shortages, delays and increased prices are believed to be imminent not only for IT decision-makers, but for many consumers, as well. Gloom & Doom? It doesn’t have to be.

Cisco seems to believe the impact will last only six months, but have already announced price increases. Gartner predicts this shortage will last through Q2 of 2022. Still, others suggest the impacts of this shortage could last more than two years.

By now, it would make sense your team is beginning to consider its options for planned hardware purchases and already recognize that price increases and planned capital hardware purchases may be significantly delayed. The emphasis for many, however, seems to be only on CapEx plans. Certainly this “Chipageddon” will impact new hardware purchases, but you can count on it to also impact your (OpEx) hardware maintenance renewal costs. So, now is the ideal time to have a clear reminder of your best options – solutions for which XSi can be of great help!

Extending Hardware Lifecycles – Intentionally & Strategically

While most companies already retain data storage assets for 7-8+ years, few will deeply consider how well-made their server and networking hardware really are. Just recently, the European Commission ordered a study on network hardware and drafted these results – “economic value is 5-7 years,” but the “technical lifetime is 15-20 years!” At the same time, independent hardware maintenance companies, like XSi, hold MSAs for many clients running 10+ year old servers – without issue and NOT struggling to source spare parts/features.

By committing to hardware lifecycle extensions, you can stave off the expensive (or impossible) tech refresh (CapEx); but, you can also shift these post-warranty/EoL/EoS hardware assets into a lower-cost, independent hardware maintenance (OpEx) support agreement. Budget dollars saved CAN be re-directed toward mission-critical initiatives or mandates placed upon your IT department.

The Logic of Hardware Lifecycle Extensions

I’m making available two helpful white papers you may freely download from the links below:

Click Here to contact XSi and begin an open, helpful discussion about how XSi can help with hardware lifecycle extensions, lower your costs and do so without sacrifice to Service Quality.

About The Author

Todd founded XS International in 1990, helping to build an independent IT support organization led by pioneering executives with proven tenures at Cisco Systems and Juniper Networks. He holds a board of director positions with the world’s two most prominent associations for independent IT support providers – Service Industry Association (SIA) and ASCDI (hardware resellers). He was a founding member of the Digital Right to Repair Coalition (now known as Repair.org, and continues to serve on their Board of Directors. As a hobby, he also co-founded VinoApp, specifically for Argentine wines. Very much a serial entrepreneur, Todd earned his Bachelor’s in Finance from Ohio State University and later completed a three-year Entrepreneurial Masters Program, given by the Entrepreneurs’ Organization & MIT Enterprise Forum. He now resides in the greater Dallas area with his family.
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