Monday, September 27, 2021

Report: The chip shortage's next victim is data-center switching

Enterprise looking to buy data-center switches face longer lead times and lack of stock over the course of the next year or so as demand continues to substantially outpace supply, according to a report from the Dell’Oro Group.

Sameh Boujelbene, leader of the analyst firm’s campus and data-center research team, said that one canary in the coal mine was Broadcom’s announcement earlier this year that 90% of its total chip output for 2021 had been spoken for as early as March. That’s the result not just of material shortages that have affected the semiconductor market as a whole, but of human behaviors that arose in response.

Whether they’re smaller enterprises or big hyperscalers building out capacity, IT decision makers tend to rush into pre-orders whenever headlines about shortages appear, Boujelbene said, and Dell’Oro projects that will true in 2022.

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Thanks to Jon Gold (see source)

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