With global trade tensions and uncertainty looming over the American political environment and its geopolitical views, let’s focus on how tariffs could affect an enterprise’s hardware and software costs. According to the New York Times, the White House has assured Apple and other American IT providers that no new tariffs will be created. However, if things change and tariffs are enacted, what could be their impact?
Tariff Impacts to IT Departments
- Laptop costs will rise. Most parts of laptops from the battery to the laptop screens will cost more since they almost entirely manufactured overseas. This might bring more attention to less expensive devices like Chromebooks.
- Server costs will rise. Just like laptops, the cost to purchase a server will rise. This may mean that enterprises will look more to IaaS platforms like Azure, AWS, and Google Cloud than ever before.
- SaaS will continue to grow. If hardware prices rise, then keeping computer processing power at excellent levels across an enterprise will be harder. To avoid this being detrimental to business operations and productivity, adopting more SaaS apps will allow the applications that would normally require a lot of processing power to be done on servers outside their environment.
The IT Response to Tariffs
Should these tariffs become law and you’re under new pressures to cut costs, please note that there are simple ways to save on expenses without compromising business operations. Amongst them, a value-driven IT asset management program, is a great solution to save up to 30% of your software expenses. ITAM programs, like Scalable’s Asset Vision®, can detect all software in an organization’s environment and then highlight the software that goes unused, yet providing considerable costs. If you would like to learn more, please contact us.