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Sandy Bridge recall could leave CIOs in budget limbo: IDC

Sandy Bridge recall could leave CIOs in budget limbo: IDC

Recall causing domino effect on PC market

CIOs may be forced to leave their IT budgets untouched due to the Sandy Bridge recall, according to analyst, IDC.

Speaking to CIO Australia, IDC market analyst, Amy Cheah, said the recall has caused a widespread domino effect.

“Although most of the currently affected PCs are targeted at consumers, the issue has a domino effect on the entire PC market,” Cheah said.

“Most PC vendors have decided to hold off releasing new models with second generation Core i processors. For CIOs looking to refresh their PC fleets to the latest Intel CPU, this would mean a delay and consequently leaving IT budget unutilised.”

Cheah said the recall has impacted the industry as a whole, but that Intel made the right decision to make the recall early on.

“As embarrassing as it may be for Intel, it's better to nip the problem in the bud than suffer the consequences later,” she said.

“Many of these chipsets had yet to reach end users in full scale. Considering it is a minor technical problem which Intel estimated would affect only 5 per cent of PCs that use the faulty SATA ports 2-5 over their lifetime, it works in Intel's favour to react now before history [the ‘Pentium flaw’ incident in 1994] repeats itself.

Cheah advised IT leaders may need to think outside of the box to overcome the recall.

“CIOs may have to look for ways to offset the delay by either purchasing first generation Core i processors, looking to other form factors such as media tablets, or reallocating the budget,” she said.

There will be some short-term problems caused by the recall, but she said the long-term impact will be minimal for CIOs, echoing analyst firm Gartner which has also advised the impact of the recall would be minimal.

“There will not likely be large-scale shortages of PCs in general but certainly there will be shortages of Sandy Bridge processors at least through February and probably March,” she said.

“If major vendors such as HP, Acer and Dell are getting first generation processor orders, smaller vendors may be at the losing end. For CIOs, it is unlikely to have any long-term impact.”

Follow Lisa Banks on Twitter: @CapricaStar

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