How the cloud helps you combat the global chip shortage

How the cloud helps you combat the global chip shortage

Posted by HTG

'Shortages of semiconductors, fueled by pandemic interruptions and production issues at multibillion-dollar chip factories, have sent shock waves through the economy. Questions about chips are reverberating among both businesses and policymakers trying to navigate the world’s dependence on the small components.' - Don Clark, The New York Times

Silicon chips are tiny, and yet their shortage has had a massive impact on the tech industry. So much so, that it has halted assembly lines around the world, decreasing the production rates of everything from home appliances to cars.

Computer companies have also been affected, with Sony, Apple and Samsung among those bearing the brunt.

While this means getting that cheap home computer might take a little longer, the ramifications for businesses go far beyond.

The price hikes when applied to multiple devices could bring a company's spending over budget. And then there are those waiting on machines with GPUs. These processing units are the very things that make some businesses work.

Since the chip shortage could continue for another two years, businesses need a better strategy for their technology.

This is where the cloud can help.

Maintaining high performance with the cloud

The cloud provides a high-performing alternative to onsite networks and high-end machinery. A cloud GPU can provide hardware acceleration, without actually having hardware physically installed.

This means cloud-based systems, like Azure Virtual Desktop (AVD), can be used for:

  • Rendering, editing and streaming video content.
  • Computer-aided (CAD) design.
  • Deep learning.
  • Analytics.
  • Large-scale mathematical modelling.
  • Data storage.

And all this while using a standard device.

However, many companies still baulk at the idea of using the cloud for their line of business applications, citing the high costs that some incur from a consumption-based model. But even if the price is initially high, it's only for the short-term.

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ROI over expenditure

The outlay for the cloud might seem expensive. But over time, the investment more than pays for itself.

A recent survey found that the cloud delivers over four times the ROI of onsite deployments.

This is thanks to the fact that no physical servers are needed, nor the extra office space to house them. And, with Cloud-based virtual desktops like AVD, software updates and security checks happen automatically, with no downtime for your staff or network.

Those, however, are just the tangible benefits.

“Organisations that shift to public cloud unlock additional value by repurposing and reskilling their workforce to focus on higher-value tasks.” - McKinsey

Think about everything your staff could be working on. It's this kind of increased efficiency that will also contribute to your ROI.

Choose the right cloud migration strategy

Considering the chip shortage could last until 2023, migrating to the cloud is necessary for many. But we're not saying it will be an immediate transition. Nor are we saying it should be.

After all, there's no value in a "lift and shift" strategy—just replacing your current technology with the cloud will not increase your efficiency.

Choosing the right migration strategy takes consideration and some time. An expert partner will guide you through your digital transformation, providing scalable, cost-effective options for a smooth transition to the cloud.

Once your cloud-based system is up and running, the benefits will be instant. So your business will remain productive, even when the chips are down.

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