Channel programs News
The 10 Biggest News Stories Of 2022 (So Far)
Many of the biggest news stories this year, including supply chain disruptions, economic uncertainty and the adoption of hybrid work-from-home practices, are repercussions from the COVID-19 global pandemic.
1. Supply Chain Disruptions Create IT Product Shortages, Accelerate Cloud Adoption
Supply chain disruptions, leading to product shortages and order backlogs, created major challenges for the IT industry in 2022 as vendors and solution providers worked to meet customer demand for servers, PCs, mobile devices and other systems.
And as the year progressed, there’s been growing evidence that supply chain problems may be having a more fundamental impact on the IT industry by accelerating the migration to cloud-based computing.
Supply chain problems were evident as early as the first year of the COVID-19 pandemic and became fodder for the nightly news in 2021 as container ships waited in line off the California cost to unload their goods. But disruptions in supply chains have really hit the IT industry in 2022.
In February, for example, Xerox warned that it had a $300 million order backlog that it could not ship because of supply chain issues. That same month, Dell Technologies said it was feeling the impact of shortages of integrated circuits and other components, including network controllers and microcontrollers, that go into the company’s PCs, servers and storage systems.
In April Apple said production shutdowns by key manufacturers in China could result in an $8 billion hit to sales this year. (The company’s Q2 results in July indicate the hit won’t be that severe.) In May Lenovo warned that COVID-19-related production shutdowns in China would slow product shipments. And in July, citing supply constraints and logistics problems, market researcher IDC said global PC shipments fell 15.3 percent in the second quarter.
Some are battling back. HP Inc., which reported a $10-billion order backlog in 2021 due to supply chain disruptions, has hired a chief supply chain officer who is taking such steps as revamping the company’s ERP systems and developing better supply chain monitoring and forecasting processes.
Solution providers and MSPs are also finding ways to survive – and even thrive – amidst supply chain challenges. World Wide Technology CEO Jim Kavanaugh told CRN that his company tries to help customers better anticipate long-range requirements while being “creative” to meet their more immediate “mission-critical” needs. MSPs at the recent XChange conference (put on by CRN parent The Channel Company) said they are battling the supply chain problem by tackling infrastructure upgrades in smaller chunks, working with customers to develop multi-year IT plans, and encouraging cloud adoption when products for on-premises systems aren’t available.
And that last trend may be the ultimate impact of the supply chain problem: An acceleration to the cloud (infrastructure-as-a-service, platform-as-a-service and software-as-a-service) by businesses and organizations who are unable to buy the equipment they need for on-premises data centers.
“When customers can’t get HPE, Cisco, Dell for months – sometimes we‘ve had customers that can’t get it for quarters – then what are you going to do? You’re going to spin it up in the cloud,” Jason Geis, CEO and co-founder of CloudWerx, a fast-growing Google Cloud partner, told CRN.