Chip Shortage- Its Influence On Cloud Computing

Cloud computing is the enhanced option for today’s generation as things can be accessed anywhere, anytime. Technologies have been adopting cloud computing to ease customer operations and satisfy them.

Before we get into the details to know the influence of the chip shortage on cloud computing, let us know a brief introduction of public cloud and the significant benefits they generate.

Public cloud:

Public cloud platforms use cloud computing models to build applications and models accessible by people remotely. And, the services offered might also include free subscriptions.

Benefits of public cloud :

It saves resources as customers require to pay for what they have used

Meets the user demands and workload

Paves path for own on-premise IT resources

Chip shortage for Cloud computing

The pandemic resulted in a reduced number of chips. Consequently, the supply has gone down, resulting in increased prices. Things would soon turn to normal, balancing the supply and demand in the market. Moreover, the technology products will start building the pace of development and manufacturing. However, the growth rate will not meet the speed as expected by the experts.

Though the shortage of cloud computing has significantly influenced vast sectors, let us study its effect primarily on cloud computing :

The influence is more on traditional enterprise data centres than cloud computing service providers. The private data centre owners have a more significant influence on chip storage, while the cloud computing service providers are comparatively less affected by its cost and availability. The reasons for it can be defined as follows:

The key reasons include the following :

Cloud providers are efficient enough to share chip-based resources provided they optimize the systems that  are multi-tenant and virtualized

Cloud providers can keep the processing cycle cost low as their view is in the long run and the resultant effects.

The advantage gained is that the customers acquired retain for a longer time and derive an income for the long term.

Cloud service providers are handling more innovative chips for cloud computing systems. Moreover, these service providers no longer depend on the chip producers for their costing, leveraging power, innovation and optimization for their specific requirements. Such an approach will have a minor effect on the cloud service providers products and services.

Do It Yourself Approach (DIY) will be more helpful in coping with the current challenges of the chip shortage. This leads to more innovation, control of various components and building cloud services such as optimizing power, networking equipment, including the power that can be dealt with using the energy sources such as wind and solar. Private data centre owners have a greater scope to function and be creative, as does the significant cloud providers do.

Cloud service providers have a big name regarding the chip shortage, and it is sure that its influence would surely be upon the technology cloud computing providers.

Always the chip shortage would drive the innovation of the cloud providers. Most enterprises have gained greater control of in-house chip development and do the development within their market limits.


The DIY approach is much appreciated for the results it drives. The results generated are truly extraordinary. The chip requirement has proved fruitful for smart vehicles,  smartphones, RVs and the Internet of  Things, and these fields will no longer encounter chip shortage.

ONPASSIVE, an AI-powered organization, has enabled AI cloud computing technologies through O-Counting,  a financial cloud computing system enabling faster and quicker financial transactions.