Original equipment manufacturers are feeling the pinch of a worldwide computer chip shortage that’s creating delays in various industries. Caused by a combination of pandemic-related closures, production challenges, and demand spikes, the shortage is having an immediate impact on consumer products, like automobiles, laptops, tablets, and 5G smartphones.
We believe the chip shortage will eventually affect cloud and enterprise data centers. In particular, we’re cautioning our clients that the standard timelines for acquiring new networking, server, and storage equipment may not return to normal for several quarters.
The biggest challenges businesses are likely to face are increasing costs, equipment shortages, delays, and the temporary lack of availability.
The Role of Refurbished Equipment
If you’re experiencing chip-related cost increases or equipment delays, you may want to consider a new procurement strategy: refurbished equipment.
Purchasing refurbished networking, server, and storage equipment helps you get more for your IT budget without sacrificing performance and product quality. If you’re unfamiliar with refurbished IT equipment, here’s an overview.
How refurbished IT equipment is different than used equipment
While some people confuse the two, refurbished equipment isn’t the same as used equipment. Used equipment vendors sell everything as is. In contrast, vendors who offer refurbished equipment make sure it’s working correctly and address any issues before re-selling.
At Summit 360, we have a step-by-step refurbishing process to ensure you’re getting high-quality, name-brand hardware at great prices. Our expert IT technicians:
- Inspect the equipment for external issues and missing parts
- Determine whether the product meets our standards (not all equipment does)
- Test the ports to make sure data and power are passing through the board
- Return the operating system to its factory default configuration
- Prepare the switch, router, and other equipment, so it’s ready to put into your network
- Replace missing parts, repair mounting hardware and paint any cosmetic issues
- Ensure all auxiliary pieces and components are intact and packaged with the equipment
Benefits of Adding Refurbished Equipment into Your IT Mix
Generally speaking, companies who shift to refurbished IT equipment during the chip shortage will realize the following primary advantages.
Refurbished equipment costs less and will help you avoid chip-related cost increases or the anticipated loss of enterprise discounts. In general, our refurbished equipment prices can be significantly less than new. And that doesn’t include the amortization savings you’ll realize.
Shorter lead times
Refurbished equipment is already available, which means you can avoid delays or the need to forecast further ahead (which brings its own set of challenges). Our in-stock items can be delivered overnight; other items can be sourced and shipped within a day.
Most refurbished equipment sellers like Summit 360 offer some kind of warranty. Our warranty is included in the purchase price and covers repairs for the product’s life on any failures during everyday use.
While the computer chip shortage will have most businesses focused on cost, availability, and reliability, refurbished equipment has other benefits as well.
If you’re considering refurbished equipment, you’ll also want client support. At Summit 360, we offer 24/7/365 tech support at a fraction of the cost you’d expect from an original equipment manufacturer. Plus, you get top-tier support from certified engineers.
If you’re a business that tracks your environmental impact, using refurbished equipment is a great way to reduce your footprint.
Planning Ahead for your Equipment Needs
We’ve been in the refurbished IT equipment industry for more than 25 years. During that time, we’ve never seen anything like the current computer chip shortage. It’s a complex and challenging issue that tech industry experts and leaders predict could take at least 18-24 to resolve.
As you’re planning ahead for your equipment needs, remember that if new gear is in short supply the secondary market is an option to reduce your lead times and cost.
Want to learn more? Download our guide to purchasing refurbished IT equipment or contact us today.