It may sound like an exaggeration, but Cisco 9200Ls were quoted to a client at 434 days lead time this week. That’s Easter of 2023! Microchip production is still lagging, and other supply chain issues are not going away any time soon. Is waiting a year for your gear really an option?
In addition to lead time issues, OEM list prices for networking equipment have increased nearly across the board as manufacturing costs continue to rise. Some components required to make network hardware have increased in cost as much as 200%. The only way for Cisco and other OEMs to protect their margins and keep Wall Street happy is to increase their prices as well. Take a look at the chart below. These are the percent increases in list price for some of the most common Cisco switches since the start of the pandemic.
|List Price Average % Increase|
Not only are you guaranteed to wait a very long time for product delivery, but the costs on which you based your budget forecasts have been blown away. To make matters worse, both lead times and list prices are expected to continue increasing.
The secondary market for Cisco hardware has been vibrant and growing for more than two decades now. Cisco and their Brand Protection department have ramped up their efforts to discredit and downplay the obvious benefits of the secondary market, yet companies like Edgeium and their market shares continue to grow.
If you have questions about specific hardware cost increases or lead times, please email email@example.com. Don’t wait. Stay sharp. Get the gear that you need now, spend less, and finish the critical projects your organization requires.