Impact of Coronavirus on the Tech Industry
With the onset of the COVID-19 pandemic, many businesses have no choice but to come up with creative solutions. The tech industry is not any different.
Some of the most essential things for IT leaders to consider include:
- The adoption of new software tools to address emerging challenges
- Promoting the security of their systems
- The tweaks that they can do to manage their spending priorities
- How far they can go to ensure that remote workers always have what they need
While the coronavirus cripples other sectors of the economy, the tech industry remains steady. It may even thrive.
Amazon, for example, announced that it would be hiring 100,000 warehouse workers. They expect new workers to help them meet the surging demand. According to Facebook’s chief executive, Mark Zuckerberg, traffic for messaging and video calling has increased significantly. The numbers using Microsoft software have improved by over 40%.
Since most people are staying home and working remotely, their reliance on technology services has increased. Many buyers now depend on online shops instead of brick-and-mortar shops for drugs, groceries, and other essentials.
Stay-at-home orders have narrowed entertainment options. It is no surprise that traffic to social media and video streaming sites has increased dramatically. Many others rely on social media platforms for information.
Negative Impacts of the Corona Virus
The Cancellation of Major Tech Conferences
Because of the coronavirus pandemic, many tech conferences have been canceled. The Mobile World Congress (MWC), which was supposed to happen from February 24th to 27th, is one of the most notable conferences that were canceled. Other significant events that were canceled or rescheduled include Facebook’s F8 Developer Conference and Google’s Google Cloud Next event.
Disruption of the Supply Chain
Since many states have already issued stay-at-home orders, with the increase in remote workers, the demand for computers has increased. The sudden increase in demand has affected the supply and demand chain. According to Mikako Kitagawa, Gartner’s research director, the most significant factor influencing the shipment of personal computers is the outbreak of coronavirus. The demand has grown so much that manufacturers can barely keep up.
Apple, for example, faced a shortage of their iPhones supply because their primary manufacturer, Foxconn, had to shut down a lot of its production in China. According to Apple analyst Ming-Chi Kuo, the shipment of iPhones may reduce by up to 10% through Q1. The coronavirus outbreak is spreading so fast that companies are unable to identify areas that may be affected next.
Change of Priorities
With the switch to remote work, there is a high risk for cybercrime. IT leaders have to shift their priorities, and safety is one of the most important ones. It is now critical for IT leaders to implement defensive techniques such as endpoint detection and multi-factor authentication.
With the move to remote work, companies now have to deal with new communication challenges. Remote workers may face significant technology hurdles.
A Test of Technological Capabilities
During the coronavirus pandemic, companies have had no choice but to test their abilities to work remotely. As a result, the stress on VPN networks is significant. Companies that do not have reliable systems may need to upgrade immediately. Even those with secure systems may have to create additional measures to reduce delays and stress.
To conclude, the tech industry has suffered a few losses even though it has reaped a few benefits from the pandemic. Some of the most significant ones are the cancellation of major tech events, disruption of the supply change, and a test of the company’s abilities to address communication challenges.
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