How does the lack of computer parts impact cloud adoption? Cloud adoption in organizations across the world is at an all-time high, and the pandemic only fueled this phenomenon further. Cloud adoption has been integral in promoting remote work internationally and even though the urgencies of the pandemic are nowhere near as terrifying as they used to be, both employers and employees have gotten used to the new formula of working.
In fact, the use of electronics and, therefore, their demand also sky-rocketed during the pandemic. Human contact needed to be reduced as much as possible, and so technology and electronics came to the rescue and cloud adoption expanded at the speed of light.
But are there any other reasons for the increased adoption in cloud systems? Is there really a shortage of computer parts around the world that is driving the need for cloud systems? Let us find out:
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Is There A Lack Of Computer Parts?
When we say lack of computer parts, we do not mean that the world is suddenly running out of the technology for making keyboards or that LEDs are suddenly out of the market and unable to be found easily. Something much more integral is missing the mark for meeting the demand, and that is the semiconductor, more commonly known as the microchip.
There is a massive demand for microchips across the world, with household appliances, electronics, and even electric vehicles being at the forefront of this demand. Naturally, the lack of this critical component is not just driving up the cost of the available electronics but is also forcing innovators and tech giants around the world to come up with innovative solutions.
Predictions suggest that the semiconductor shortage will eventually die down, and manufacturers will be able to meet the demands of their consumers. However, it will not happen as quickly as we would like to hope. It is predicted that the microchip shortage will stay with us well throughout 2022, and we will need to find workarounds for the situation. The pandemic has only further highlighted the need for technology in this new age, and the chip shortage is not helping the situation.
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What Is Causing The Global Chip Shortage?
So what exactly is causing this global chip shortage? Technology was very prevalent before the pandemic as well, but we had never heard of a phenomenon so bizarre that microchips were suddenly nowhere to be found.
Firstly, the pandemic was a massive culprit behind this shortage. For a major part of 2020 and even 2021, physical human labor was limited. Therefore, just like the production of many different products, the manufacture of semiconductors also suffered heavily. Therefore, the pandemic had a huge negative impact on the supply chain for semiconductors. The impact was so large that the world has not yet fully recovered, and there is still some time before that happens.
Other than that, the lack of computer parts and the need for more and more electronics as the pandemic moved on and the world’s requirements began shifting created a great demand for microchips. Microchips are an integral component in smartphones, laptops, home appliances, and electronic vehicles. The healthcare industry saw technological advancements overnight during the pandemic, and therefore they required a larger share of semiconductors too. The situation has managed to drive up the costs of regular appliances and has also prevented the manufacturing of certain products. For example, Volkswagen had to stop production of their EVs for a week because of the lack of chipsets that they held.
This gap between the demand and the supply of microchips is essentially what is throwing the world of technology off at present. Industries are still in a frenzy since they cannot raise the production of chipsets any higher than they already have, and the demand for newer and better technology does not stop. So is there a savior for all of us at this time? Is cloud computing really the technology that can help save us from the perils of the global semiconductor shortage?
What Does This Mean For Cloud Adoption?
We cannot hail cloud computing as some messiah that will help in saving the world when there is a chip shortage. Cloud computing is mainly virtual, and the chip shortage will still need to be compensated for immensely.
However, there is no doubt that the chip shortage across the world is truly driving up cloud adoption internationally.
First of all, many cloud providers were able to buy microchips in bulk and ahead of time. This is one of the main reasons why the cloud industry has not been impacted as much as other industries have. Because of this, they have also managed to keep the costs for cloud migration low as well. Other than that, cloud computing also has the added advantage of shared chipsets, where multiple systems are able to utilize a single chipset and continue working as usual.
The shortage of computer parts and semiconductors is also more likely to affect traditional data centers with large infrastructures to keep up than they are to affect cloud providers. Traditional data centers do not have the advantage of sharing chip-based resources either, even if they have virtual adaptations.
Furthermore, cloud providers, at least the major ones, are way ahead on the ladder of innovation since they are now manufacturing their own chipsets, which are more customized to the use of cloud systems. Most of these cloud providers no longer have to rely on other chip providers; therefore, their business is by and large unaffected.
Naturally, the innovative functioning of the cloud computing industry has managed not just to keep the industry intact but has also managed to take it up to greater heights during the pandemic.
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Conclusion for Lack of Computer Parts and Cloud Adoption
There is a very real semiconductor shortage in the world these days, and it is sending the tech world into panic since it is set to last through all of 2022. This shortage of microchips has been able to drive up cloud adoption to a great extent, and we can predict that the adoption will only soar to new heights.
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