THANK YOU FOR SUBSCRIBING
Network Infrastructure Magazine | Tuesday, January 31, 2023
Global chip shortages are affecting current network equipment manufacturing. Manufacturers can adapt to the existing equipment availability by adopting alternative strategies, outsourcing from the right vendors, recycling equipment, and delaying network deployments.
FREMONT, CA: Many global industries face network equipment shortages following supply chain disruptions. Companies find it difficult to find the right network equipment. Manufacturers are at a disadvantage as their manufacturing lead time grows while the impending unavailability of network equipment widens. Global conditions like the pandemic triggered delays in the supply chain as chip production is falling behind increasing demands. Chip shortages cause lower production and availability of networking gear. Manufacturers, as a result, are undertaking fewer projects and scaling back on upgrades.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
A consequence of impending network equipment challenges results in longer lead times, higher prices, and more rigorous deal terms from original equipment manufacturers (OEM) and value-added resellers (VAR).
Manufacturers must account for the continuing chip shortage and devise appropriate strategies to mitigate its challenges.
Modifying the network: Manufacturers struggle to find the appropriate network equipment for their production process, and chip shortages mean that manufacturers do not have access to the best equipment. An effective solution is for producers to identify other possibilities that will result in similar outcomes. If parts are unavailable for the original design, an alternative method can achieve a similar result.
Delaying network deployments: Companies must prioritize which network deployments are essential, and that can await deployment. Datacenter cores are important, while companies can account for equipment shortages by deploying other networks later when resources are available.
Maximizing available resources: Companies need to maximize available connections and dealers to move ahead in the market. The right vendor has better compatibility, complexity, and support implications that can efficiently serve a company's network equipment. Many vendors offer refurbished network equipment. Manufacturers can also optimize their resources by eliminating dead ports and underutilized links.
Whitebox alternatives: In recent years, there has been an increase in interest in Whitebox networking. An operating system based on Linux eliminates the dependency between network functions and hardware vendors. It allows companies to acquire physical hardware from various OEMs at a much lower cost. A lower cost also means greater engineering responsibility and accountability for companies.
More in News