San Mateo, CA : U.S. businesses are being urged to ensure they have spent their entire technology budgets for 2020 and have 2021 spending plans planned out in detail if they want to continue trading into 2022.
The long-term warning was issued by NetworkTigers, a leading provider of critical new and refurbished network equipment based in San Mateo, CA, and serving all of North America.
“If ever there was a time for companies to have strategically spent their IT budgets, it’s now, as 2020 draws to a close,” explained NetworkTigers President and Founder Michael Syiek. “And as 2021 will undoubtedly present its own unique challenges, IT stakeholders at every level should ensure they know exactly what they need to buy in order to keep their companies operational. We all have to be agile and adapt to the realities in our industry. And CXOs need to fully grasp the importance of the decisions they make in the next few months as budgets are agreed and spent.
“Networking is the very lifeblood of a modern enterprise and, as we’ve found in our global supply chain research, those with responsibility for technology acquisition should not assume they will have the same access to crucial parts as they have in the past.
“The global response to COVID-19 has changed that and business leaders need to take action today that could mean the survival of their business in the next two years.”
In June 2020, NetworkTigers reported that in a normal year the usual flow of used equipment starts with the larger, more established firms which would pass on their hardware to the recyclers or network equipment suppliers, who would then supply small and mid-size firms, healthcare organizations and governmental agencies.
But 2020 was entirely different, explained Syiek, who noted that the prices on used equipment had been going up. “Large firms like to do a spring upgrade and to remove older data center equipment before the summer starts. This year we did not see the normal volume of upgrades. If the normal flow of data center equipment upgrades does not happen, then most used network equipment vendors will be selling from current stock. When those stocks are gone, and with the manufacturers having supply issues and disruptions, the prices will go even higher.”
The NetworkTigers deep dive Are you ready for the great supply chain crash of 2020? was one in a series of articles commissioned for the company’s news portal: https://news.networktigers.com/
Other articles in the series include Is COVID-19 the death knell for checks?, Reboxing counterfeiters deliver price war as they think inside the box and “Hello! Please don’t hang up!” Time to cut the line on robocallers.
