Supply Chain Issues and Cloud Growth

Written by Allison Francis
December 21, 2021

“Business for us is growing at 20%+ per year right now from the onset of COVID, but we do and have had a large footprint in work from home or working remotely since our founding, which has helped. We expect to see that growth continue.

“For Q3/Q4 of 2021 into the first half of 2022, we see and expect to continue to see hardware revenues held up by supply chain issues forcing a level of creativity to get solutions to ship. We expect to see a 30% reduction or at least delay in our hardware revenues due to supply chain issues in 2022.

“We expect the second half of 2022 to show more shipments/hardware revenue than the first half of the year.

“We expect to see growth in our cloud services and as-a-service business for those that have problems that have to be solved before hardware is available. We expect some of that to be short term until alternative solutions are available and some of that to be a permanent move to some form of hybrid cloud model.

“We expect to sell through our own reserve capacity of hosted hardware resources and are taking steps to make sure we are doing what we can to keep supply ahead of demand. We are seeing a large expansion of our NVIDIA vGPU/VDI business as companies are working through work from home on a more permanent basis and needing to deliver webcam/rich multimedia/training, etc., traffic to end users in a variety of scenarios. Fractional or permanent work from home being the most common use case.

“We expect to see continued expansion of architecture, engineering and construction firms, along with media and entertainment setting up remote solutions to deliver their graphics-intensive applications remotely across a variety of platforms to meet recruiting/retention and on-time project delivery needs.

“Security and compliance continues to be a driver, with more MSPs and end clients building out their capabilities to manage and stay in compliance with the frameworks of controls for their industry, be it FFIEC, HIPAA, HITECH, ISO 27001, CMMC, SSAE, NIST, etc. We see more growth coming from MSPs in this space and our more heavily regulated customers for some of our internally developed tools.

“Labor could become a constraint for us, but we have taken steps to introduce automation, cross training and other strategies to mitigate this as a potential risk that could cap some of our growth through 2022.

“We feel great about where we are; we think we have a good handle on the challenges that could make what we do more challenging over the next year plus, and we have some comfort in the steps we are taking to mitigate at least the risks we do see as we close out 2021 and move into 2022.”

— Val King, CEO, Whitehat Virtual Technologies

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Allison Francis

Allison Francis is a writer, public relations and marketing communications professional with experience working with clients in industries such as business technology, telecommunications, health care, education, the trade show and meetings industry, travel/tourism, hospitality, consumer packaged goods and food/beverage. She specializes in working with B2B technology companies involved in hyperconverged infrastructure, managed IT services, business process outsourcing, cloud management and customer experience technologies. Allison holds a bachelor's degree in public relations and marketing from Drake University. An Iowa native, she resides in Denver, Colorado.