It is anticipated that the global shortage of semiconductors may last up to another two years.  Yes you read that right, up to another TWO calendar years.

In January of this year, global semiconductor industry sales reached $40 billion, an increase of 13.2% over the same time in 2020.  Although chip manufacturers work overtime continue to produce semiconductors, the demand for devices that use them is reaching new heights and has already far outpaced the global supply.

The pandemic of the last 18 months has played a huge part in bringing this about.  As companies required their staff to work remotely, purchases of PC, Wireless Access points and other technology for home office use surged. Not surprisingly, people turned to new, chip-filled forms of entertainment to pass the time during weeks or months of lockdowns.  This ran the gambit from video game consoles to new DVRs to new televisions and even new smartphones.

The behavior of the Chinese government has not helped matters either.  There is evidence that Chinese technology companies have stockpiled chips and chip making equipment, especially when the Trump administration was still in power and implementing trade sanctions to balance trade between the United States and China.

“At some point, consumers will be affected by the chip crisis,” Ondrej Burkacky, McKinsey lead on semiconductors, told ZDNet. “The high noon season for consumer electronics are Q3 and Q4, and there might be shortages of several products during this time.”

PC manufacturers have suffered from significant supply chain issues for the last several months. Although record sales were reported in 2020, it is estimated that those numbers could have been higher had components been available.

Businesses are expected to be impacted significantly more than consumers, since they buy technology at a much larger scale.  Companies do not simply buy a single PC, but often hundreds or even thousands at a time. Additionally networking products such as datacenter core switching, edge switching and wireless access points shipments are being delayed by weeks and months from leading networking manufacturers such as Extreme Networks, HPE/Aruba, Cisco and Juniper.

 

Chip shortage

The global chip shortage is also impacting consumer electronics such as refrigerators, ovens, washing machines, dryers and more.  Even toys and common appliances such as lights, electronic soap dispensers, vacuum sealers and stereo gear are going to experience the impact.

The trickle down from all of this is affecting other areas such as homebuilders and contractors staying on schedule building homes, the buyers of those homes being able to close on time and locking in their interest rates.

The automotive industry is also being impacted.  Used car values have skyrocketed as new car dealers struggle to keep their manufacturing on pace to expected norms.  Manufacturers have had to idle entire plant facilities because of the shortage of core silicone chips for the vehicles electronic components.   The idling of these plants in turn impacts suppliers of steel and other commodities to those plants.

It is estimated by industry analysts such as Forrester that the shortage and resulting supply chain impacts could last for another couple of years.

Leading chip manufacturers such as Intel have had existing manufacturing plants working overtime, along with building new facilities to attempt to keep up with the demand.  However building the new plants will of course take time, factoring into the two year shortage forecasts.  Consumers used to near instant gratification with shopping online and in stores are in for some disappointment in the coming months, as shortages are expected to last through next year.

[gravityform id=”6″ name=”Contact” description=”false”]

JBS says meatpacking operations will be back to normal Wednesday after a ransomware attack over the weekend.

• JBS, the world’s largest meatpacking company, says it’s getting back online after a cyber attack.
• The attack, believed to have originated in Russia, disrupted plants in the US and Canada.
• Late on Tuesday, the company said its production should be back to normal on Wednesday.

Meatpacking operations are returning to normal Wednesday at JBS plants across the US and Canada, after a ransomware attack over the weekend against the world’s largest meat processor’s IT infrastructure, the company said.

“Given the progress our IT professionals and plant teams have made in the last 24 hours, the vast majority of our beef, pork, poultry and prepared foods plants will be operational tomorrow,” JBS USA CEO Andre Nogueira said in a statement late on Tuesday.

The attack on the Brazil-based company is thought to have originated from a criminal organization based in Russia, the White House said, and the FBI is investigating.

JBS is responsible for about one-fifth of all US beef and pork processing capacity, and the disruption yesterday caused the US Department of Agriculture to delay the release of its daily price report. Bloomberg noted that excluding JBS’s data from the report could reveal proprietary information about its competitors.

In its statement on Tuesday, JBS said it was able to sell and ship product from nearly all of its North American facilities, and that it was not aware of any customer, supplier or employee data being compromised in the attack.

Livestock industry analysts did say that even a single day of disrupted supply could significantly impact the beef market, which is already seeing a trend of rising prices.

Cyber SecurityLast month, the cyber gang Dark Side executed a similar attack against the Colonial Pipeline, leading the fuel company to shut off its supply, leading to gasoline shortages across the southeast. The company ended up paying a ransom worth $4.4 million in bitcoin to the hackers.

The issue is getting rapidly larger with the rise of various cryptocurrencies. A recent study estimated that in 2020, more than $350 million worth of cryptocurrency was paid to hackers by victims of ransomware attacks, nearly four times the amount in 2019.
[gravityform id=”6″ name=”Contact” description=”false”]

The Importance of a Cloud First Mindset
At Enterprise Systems, we’re proud advocates for cloud computing. And, for good reason. Although we may come off as somewhat biased, we believe the cloud is an effective way to create flexibility and streamline processes, as well as offload some of the unnecessary burden plaguing your IT team. Developing a proper cloud-first mindset does not mean you have to limit all other options. It simply means that you’re aware of all avenues and capable of choosing the best one to fit the unique needs and circumstances of your business.

So, what exactly is a “cloud-first mindset” anyway? The concept of a cloud-first mindset simply means that your business considers the cloud first before any other means. In order to develop a cloud-first mindset, you need to rethink your business’ current way of doing things and think of the cloud as the new normal. It’s important to remember that while hardware-based solutions are still always an option, they should be chosen strategically and only if they are truly the best way to meet goals and overcome challenges for your business.

Here are some of the benefits of adopting a cloud-first mindset:

Financially Beneficial

Cloud solutionsFirst and foremost, cloud processes are typically more cost efficient which in return, leads cloud-first enterprises to experience the financial benefits more than a business who only chooses cloud solutions on occasion. Because many services, tasks and applications are now available in the cloud, the cloud-first mindset sets businesses up for success and can save them a lot of money in the long run.

Transitioning to the cloud may initially seem like a daunting and costly task, however, it is important to note that building, managing, and scaling on-premises hardware and software requires investing a lot of time, planning and resources. Plus, you must take into account that hardware requires updates and replacements over time which can be quite costly.

Greater Scalability

As your business grows over time, so will its data volumes and other important information. A cloud-first mindset is extremely handy in a situation like this, as it allows you to scale gradually and strategically. Businesses who do not choose the cloud in a circumstance like this may risk major expenses and time investments. This is typically because they are not prepared for the growth of their organization and are forced to make last minute decisions to keep their operations running smoothly. Being prepared for the scalability of your business before it happens will not only reduce costs, but it will also minimize stress as well.

Improved Productivity

Data analysis
One of the most satisfying benefits of utilizing the cloud is its ability to improve your productivity levels within various areas of your business. With all the extra time the cloud is saving you, you can focus on truly growing your organization and plan for its future. Here are a few ways having a cloud-first mindset can improve your productivity:
• Minimizes the traditional data center expenditure
• Reduces the time required for data analysis
• Streamlines business management systems across departments
• Simplifies the overall communication and collaboration

Better Security and Data Recovery

Did you know that data breaches are usually a result of human error, outdated software, or faulty equipment? That is just another reason why choosing the cloud when establishing new processes or reviewing existing ones is a great option to consider for the future of your business. Enterprise Systems offers numerous options for identifying and preventing data breaches, so you never have to worry about the lack of efficient data recovery. With cloud solutions, you can avoid cyber threats more easily and recover data fast.

Should You Adopt a Cloud-First Strategy in 2021?

You probably already know the answer by now but just to clarify – yes! The cloud has become increasingly popular over the past few years and has freed many organizations from costly and inefficient solutions. And, you don’t have to move all of your data and processes to the cloud at once. Another benefit of the cloud is that it can be easily tailored to your needs and timeline. So, when planning for the future of your business, think cloud solutions first.

About Enterprise Systems

Enterprise Systems is a systems integrator with headquarters in Houston and branch offices in Charlotte and New Orleans. Enterprise Systems provides managed services and IT support nationwide, including Houston, Charlotte and New Orleans for premise and cloud-based voice and data networks. Whether a startup or established business; Enterprise Systems provides you with experienced, full-service support. We offer phone system solutions in Houston for businesses of all sizes.
We offer a helping hand to firms who are looking for experience and competency from an IT Company. Enterprise Systems provides service and support in an IT space that is becoming more crowded every day with competition. What sets apart Enterprise Systems from competitors nationwide including Houston, Charlotte and New Orleans is personalized service. We are large enough to maintain top tier authorizations from leading manufacturers and provide service and support to global end customers, but small enough that you are not a number in a call center somewhere.

[gravityform id=”6″ name=”Contact” description=”false”]