Trade Tariffs May Be the Tipping point In IT Consumption Models

October 8, 2018

Ready for 25% price increases and long hardware lead times? Trade tariffs may be the tipping point in IT consumption models.

 

Frustrated with the recent lead-time and availability issues with many of the major IT networking, storage, and server vendors?

 

The disruption is caused by businesses pulling forward equipment purchases to avoid price increases due to the recent China trade tariffs on IT equipment. With another round of 25% tariff increases on the horizon, you must act now if you hope to reduce the impact to your project budget and timelines. 

 

This is a great opportunity to re-evaluate your approach to consuming IT infrastructure. A flexible, scalable, cloud-first approach would reduce your dependence on many of the traditional IT hardware vendors. Projects budgets would be safe from political trade skirmishes, and timelines wouldn’t be constrained by weak links in vendor supply chains. A cloud-first approach puts you in of control your timelines and can proactively deliver value to your business, rather than having to react to outside influences, such as tariffs or product available. 


We have been working with clients to find creative ways to get in front of these issues. The pivot to a public cloud provider takes careful planning and is not something that happens overnight. Then there are the times when a project dictates the need for networking equipment, maybe for user access or cloud connectivity.

 

Fortunately we have some options to deal with the recent obstacles that we face. If you have end-of-year projects or early-2019 purchases, now is the time to act.

 

There are ways that Pinnacle Technology Partners can assist you by pulling forward and financing 2019 infrastructure purchases.

 

Or better yet, let’s talk now about evaluating public cloud solutions to solve your business needs and put you back in control of your IT destiny.

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