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The recent news of the semiconductor chip shortage has created quite a stir in the IT industry. Actually, to call it a stir is an understatement as this could have monumental implications in an industry that relies on chip applications.

Oh No!

When Cisco CEO Chuck Robbins made headlines stating that the chip shortage is “going to create some short-term pain, for sure, over the next couple of quarters,” we all took notice and wondered how it was going to affect our IT planning and strategies.

Many are blaming the pandemic, at the height of which people were buying more and more cars and electronics just as the supply was being scaled back. Semiconductors aren’t the only chips in trouble either. Similar conditions have DRAM memory chips in short supply.

The result of all this? A shortage that could take years to fix, which is pretty darn scary. It’s being called “Chipageddon” for a reason.

Change of Plans

Well, we’re here to tell you this supply chain disruption may change your buying plans, but it could end up being a good thing in the long run. How? It starts with the places chips already exist, places that could actually save you money.

It’s a simple fact that OEMs can’t keep up with current demand. While the manufacturers are most affected by the chip shortage, pre-owned equipment resellers have become even more valuable to the industry and could come to your rescue during this crisis.

Secondary Superheroes

New equipment is also costing a lot more as higher demand and shorter supply mean climbing prices. But, have no fear, certified pre-owned hardware is here to save the day!

Pre-owned equipment can save you up to 70% off list price. It’s time to take a hard look at what model numbers you actually need in your network. While we all love to have the latest and greatest technology and make our data centers a showcase, is it really necessary? There are probably many places we could save by implementing some older part numbers into our networks. Think about how much we spend on optics – that alone could stretch IT budgets even further than originally planned.

The Big Advantage

The larger resellers also have the advantage of a vast, highly reliable inventory of part numbers tested and ready to ship out. A little-known fact about pre-owned equipment: 100% is tested before it is shipped. By comparison, new equipment is only spot-tested, so the reliability rating on pre-owned is far higher than new from the manufacturer.

Warranties and TPM

Typically, pre-owned equipment will come with a warranty. Make sure to find a partner that offers a lifetime warranty and has an easy return/repair process. This warranty, combined with third party maintenance (TPM) and sparing solutions, will ensure coverage if needed. TPM offerings are a huge savings over OEM maintenance and provide another opportunity to stretch IT budgets.

The bottom line is don’t panic! There are many great companies out there that can help save your network from the so-called Chipageddon.

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