Trade War’s Perfect Tech Storm
You could see this one coming way off on the horizon. Computer users on Windows 7 are starting to move to Windows 10 as the date approaches in 2020 – it’s eight months off – for the end of Windows 7 tech support. The shortage of chips is starting to abate, but with tariffs looming on chips imported from China (which means just about all chips), prices will rise – possibly affecting supply and demand. We’re finding ways to work around the issues for many of our clients, and we can still keep options open for those who call quickly to get equipment ordered and work scheduled.
For clients still running Windows 7 who have computers with the capability of upgrading to Windows 10, we’ve been able to execute a two-step strategy. Success depends on having a good processor and enough RAM (random access memory). The first step is to install Windows 10, and the second step is to install a new solid-state hard drive (SSD). The combination of the new OS and SSD makes those computers run like new, and that will buy you time to make a bigger investment in a new computer.
The new SSDs we’re using are mostly 256 GB hard drives, and they are providing enough space for users with 500 GB mechanical hard drives – and even some with 1 TB hard drives. For those who need to store a lot of files or may want to store them, we’re installing 500 GB SSDs.
There are two primary reasons why the smaller SSDs work for most of our clients. First, SSDs are a different technology. They don’t require the space to physically access, use and store files. Second, our clients with Office 365 packages, including those with the $5, $8.25 and $12.50 monthly plans, can store files on OneDrive and access them on any device from where they can get to the internet. Personally, I have 32 GB of files on OneDrive and keep only a handful of files on my hard drive.
With OneDrive now making the storage space part of its package and integrating it with Office 365, we believe it is now a better value than Dropbox. While Dropbox has a free plan, it is limited to use on three devices, and it can easily escalate to more than $100 year just by itself. OneDrive also gives you a better feature set, including Mile IQ, which we talked about in our opening letter in the email.
With prices expected to rise because of market conditions and/or tariffs, anyone who can solve their Windows 7 and upgrade issues with a new SSD hard drive can do it at a reasonable cost. A 256 GB drive costs $125, and 512 GB drive is $200. We generally need about 1-1/2 hours of time to set up the drive, including file transfer. While we can’t predict what prices will be in the near or long-term future, we can look at Apple for some guidelines. If a new iPhone costs $1,000, a 25 percent tariff increase will raise the price to $1,250. The supply chain can only absorb so much of the increase for a limited time, and once the prices go up, they won’t come back down.
If you are an Office 365 user, see our article Setting Up and Using Microsoft OneDrive to learn how to get ready for migrating to a new hard drive or computer. We recommend you call us to help you get your OneDrive account set up, and then you can manage the transfer of files on your own.
Again, we urge all who need or want an upgrade to Windows 10 and a better hard drive to call us – 973-433-6676 – or email us to discuss your best migration path, order the required equipment and schedule the work.