Cisco Hardware Lead Times Update
Like most things that got interrupted when COVID hit in 2020, so too did the supply chain Cisco used to build its products. We saw 4- to 12-week...
Are you having trouble finding essential network equipment? You're not alone.
The factors contributing to longer lead times are multi-faceted, and so are the solutions.
During the COVID-19 outbreak, Antonio Neri, president, and CEO of Hewlett Packard Enterprise, said this about the pandemic-related supply chain disruption: “It’s not going to be easy, but I actually believe we’re going to be in a much better shape after the summer of 2022.” Well, it is summer of 2022 and OEMs are still struggling to keep up with customer expectations.
Now, 200 – 300 day lead times are common, and we’ve seen 430+ days quoted in writing to customers. Our experience has been validated by Gartner, who recently wrote that long lead times for new networking equipment will continue into 2023.
If extended lead times are forcing you to make adjustments to your network strategy, take a look at these recommendations:
Most enterprise data center and campus switches are overprovisioned. The rationale to over-provision was typically made to enable growth and/or simplify (structured) cabling. Consider consolidating connectivity to free switch usage. This will require network changes/re-cabling, but it’s an option you should keep in mind.
In an environment of scarcity and rising costs, look for opportunities to shift the paradigm. Perhaps “Hardware-as-a-Service” is an option. Maybe it’s a good idea *not* to dump five-year old equipment in a landfill if you don’t have to. Use the disruption to envision a better, more flexible, and more sustainable network infrastructure.
For the next 12 to 24 months, there will not be any appreciable change to equipment lead times. At the moment, Cisco’s hardware backlog is nearly $14 billion. A 150% year-over-year increase. At Edgeium, we believe in transparency, communication and giving our customers the best options to avoid supply chain challenges before they become bigger headaches.
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