Written by: Aaron Pries, Technology Consultant
   

Uncertainty. 

Isn't that the word of the week? If there's one thing we're certain of after reading about the game-of-chicken that politicians are playing with their economies, it's that no one knows what will happen tomorrow. Research for this blog was difficult because trying to pinpoint exactly what tariffs are going to place is nearly impossible, as the numbers seemingly change hourly. Regardless, just know that there's no point in trying to forecast an exact tariff or price percentage increase. To survive this trade war, your company must be fully organized and prepared for the looming price hikes and supply chain issues. 

Historical Numbers 

Here's some intel on recent pricing changes, to set the stage for what's to come: 

• Raw materials with their additional 10% tariffs have recently doubled to 20%, which are affecting Asian region imports¹ 

• As of late 2024, global electronic component prices were about 18% higher year-over-year and nearly 40% above their 2019 levels ² 

• It is estimated that laptop prices could rise by up to 45% under the combined tariffs on Chinese imports³ 

• Similar increases are expected for servers, network gear, and chips, with some manufacturers already communicating price hike notices before the tariffs are finalized⁴ 

Step One - Prepare 

The first priority for any organization should be ensuring that its asset lifecycle policy and inventory management are up to date. IT and procurement teams must proactively review upcoming end-of-life (EOL) systems, establish a prioritization roadmap, and allocate budgets for timely acquisitions. 

For critical infrastructure, it is strongly recommended to overestimate lead times for hardware procurement and deliveries. According to Xamin’s procurement specialist, standard lead times for networking equipment were typically a few weeks—but some clients are now receiving 60-90 day quotes. While this is not as severe as the delays experienced during the COVID-19 supply chain crisis, it is a clear warning sign. 

Adding to this uncertainty, tariffs and retaliatory trade policies have been repeatedly delayed, but the risk of significant price hikes and extended supply disruptions looms. Once the trade war officially escalates, lead times could deteriorate further, putting businesses that rely on just-in-time IT refresh cycles in a precarious position. 

This is particularly critical for security infrastructure. Firewalls, network appliances, and other security devices often rely on active support and licensing contracts—and waiting until the last minute to replace them could leave organizations vulnerable to security risks, compliance failures, or service disruptions. If your business has not recently reviewed its IT asset inventory, now is the time to act. Delaying procurement could mean paying significantly higher prices—or worse, being unable to acquire essential hardware when you need it most. 

Step Two - Consider the Cloud 

In addition to refreshing aging hardware, organizations should take this opportunity to evaluate their existing workloads and determine whether a shift to cloud infrastructure could provide greater efficiency, cost savings, and scalability. Many companies still rely on on-premises data centers and legacy hardware, but with increasing supply chain uncertainties and growing AI-driven demands, now is the time to build a strategic cloud migration plan. Moving infrastructure from an upfront capital expenditure (CapEx) model to a subscription-based operational expenditure (OpEx) model can significantly improve financial cost forecasting, reduce unpredictable hardware replacement expenses, and optimize IT budgets over time. This shift allows businesses to pay for what they use, scale resources dynamically, and avoid large, unpredictable capital investments in hardware that may quickly become obsolete. Beyond cost savings, cloud migration outsources hardware acquisition and lifecycle management to cloud providers, eliminating the challenges of long procurement lead times, warranty management, and maintenance schedules. This move enhances agility, positioning organizations to rapidly adapt to emerging AI infrastructure needs, data-intensive applications, and high-performance computing workloads. ompanies that proactively assess their IT footprint and align with cloud-first or hybrid-cloud strategies will not only future-proof their operations but also gain a competitive edge in an era where adaptability and scalability are critical to success. 

Need Help?

Let our experts assist in your organization’s IT roadmap. Our specialists can assess your IT infrastructure, identify cost-saving opportunities, and guide you through hardware refresh strategies or cloud migration planning. Whether you need to streamline hardware acquisitions, transition to a scalable, cloud-based infrastructure, or ensure regulatory compliance in the cloud, we provide tailored solutions to meet your business needs. Start the conversation today—connect with our team to build a resilient, future-ready IT strategy that keeps your business ahead of disruption. 

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