Despite a tough economy, the market for disk storage is growing rapidly. An increase in cloud storage deployments has led industry researchers to estimate a 56% increase in revenue this year alone. Approximately 45% of these hard drives are produced in Thailand, and virtually all contain components manufactured there.

Unfortunately for those who wish to purchase disk storage, severe flooding throughout Thailand this October has damaged or shut down production facilities. Experts predict there will be 25-28% shortage in the disk storage market over the next six months, and it will impact everyone from enterprise equipment manufacturers to retail consumers, resulting in shortages, backorders, and extreme price increases. 

Preparing Now to Minimize Effects of Storage Shortage

There are a few different strategies that IT Managers and Directors will be exploring in order to minimize the impact of the shortage on their departments current and future performance. Future projects will need to be re-evaluated to define mission critical projects over the next 6-12 months, and from there determine assets on-hand vs. assets needed for completion and allocation. Once a clear picture is realized of what storage requirements are needed moving forward, a balanced plan of action can be implemented to ensure that company success won’t be derailed by outside factors, while controlling additional costs that may be realized.

Some companies may choose to table all projects and focus on sustaining the status-quo of their environment – a safe option, but one that can stunt the company growth moving forward in the near to mid-future. Others will decide what they need to “stockpile” and increase their storage purchasing before major price increases and delivery delays are in full force. This is a sound strategy, as long as you have the budgetary strength to support it. If you find yourself in the fourth quarter and at the end of your annual budget, this becomes much harder to implement.

A third option is to find additional sourcing for your disk storage, to both minimize budgetary effects and weather delivery delays. The key is increasing your access to a pool of suppliers beyond just the OEM. As we all know, the OEM may be the only one who manufactures the equipment, but they are certainly not the only ones who supply it. Rental options are also available to provide a stop-gap solution which ensures that you have the hardware you need in the short-term, without paying the increasing prices during the supply shortage. Once the supply stabilizes, you could then purchase rented hardware at current market value. A successful IT department will partner with strong secondary providers and significantly reduce their dependence on the OEM and the effect of the current global state of affairs.

If you need to purchase disk storage in the next few months, and are concerned by this news, there are alternative options that will get you the hard drives you need in a timely manner. Independent hardware suppliers such as Canvas Systems have both new and used disk storage available for significantly less than what OEMs or retailers will charge, have a substantial inventory to eliminate backorders, and also provide rental options for short-term needs. Contact us today to find out more about our inventory, pricing, and superior support offerings.