Have you noticed technology upgrades are getting more expensive, even when your business hasn’t changed how it operates?
Many organizations are starting to feel pressure from rising hardware costs, especially when it comes to memory and storage. What’s changing isn’t necessarily because of how these businesses are using IT in their day to day, but what’s happening behind the scenes in the global supply chain.
As more companies invest in AI-powered tools and systems, that surge in demand has tightened supply significantly. By the end of last year’s Q3, global memory makers were down to roughly 3.3 weeks of inventory, which was barely a month of supply for the entire market.
It’s no surprise that business leaders are uneasy, but navigating this situation doesn’t have to be overwhelming!
In this article, you’ll dive deeper into why memory and storage prices are rising, how long this trend is expected to last, and practical steps you can take right now to plan ahead. You will also discover how working with IT procurement experts in Calgary can help your local business make confident decisions without being caught off guard.
The Big Picture Behind Why AI Is Changing Infrastructure Demand
AI isn’t just increasing operational efficiency with innovative new tools or filling our social media feeds with convincing deepfakes. It’s also changing how all technology infrastructure is built for everyone.
Behind the scenes, AI systems require far more memory and storage because they keep large volumes of data active and available at all times, rather than accessing data only when someone runs a task.
AI applications continuously reference, compare, and process information. That constant, data-heavy activity fundamentally changes how servers are designed:
- Server builds are becoming more memory-dense, with significantly higher memory requirements than in the past
- Storage needs are growing faster than manufacturers initially anticipated
AI demand is rising so fast that memory supply can’t keep pace, putting steady pressure on the entire market. This isn’t limited to one product or supplier. Everyone in the industry seems to be resetting their pricing and availability models right now. And it’s affecting everyone from consumers in the gaming industry to small and medium-sized businesses and government institutions, particularly if they don’t have an experienced IT procurement partner guiding them through these challenges.
Why Supply Can’t Catch Up Quickly
While manufacturers are responding, memory and storage production aren’t flexible or scalable quickly.
Major manufacturers are already reworking their production lines and expanding their facilities. They’re also redirecting capacity to meet the growing demand for memory in modern server environments. Making that shift isn’t simple because it requires companies to invest substantial capital in specialized equipment and tightly controlled manufacturing spaces.
Even with these efforts underway, analysts expect demand to continue outpacing supply. TrendForce forecasts that while overall memory output will increase, it’s unlikely to fully meet demand through 2026.Since these rising memory and storage prices aren’t the result of short-term disruptions or individual vendor decisions, this broader change takes years, not months, to balance out.
If you want to read more about why memory and storage prices are so high, HP recently published a helpful executive summary that breaks down the situation.
Three Things Organizations Can Do Right Now to Plan Around Rising Costs
While rising memory and storage prices aren’t something any one organization can control, there are practical ways to navigate the situation without overreacting. The businesses that fare best in markets like this tend to plan earlier. Here are a few steps you can follow to reduce your risk and stay in control:
1. Engage a Procurement Partner Early
For local businesses, having a trusted IT procurement partner in Calgary or Edmonton is key to staying ahead. A strong procurement team has the skills and expertise to:
- Actively track market conditions
- Access to multiple suppliers
- Understand how to balance cost, availability, and performance based on your actual business needs, not a one-size-fits-all approach.
At PC Corp, we act as a guide through this process. Our role is to help you source the best-value solution for your environment, timing, and budget, even when the market is under pressure.
2. Buy Strategically. And Sooner Than Later
If infrastructure upgrades or expansions are already on your roadmap, it’s time to take action! Making your purchase now and locking it in early will help you sidestep the likely price increases that will be coming down the line. It also saves you from scrambling at the last minute when you’re facing tight inventory and limited choices.
But remember, this doesn’t mean you should rush into buying new products unnecessarily! This option works well for organizations with a clear business plan. You should be able to upgrade on your own schedule, not because the market forces your hand.
3. Consider Financing to Preserve Flexibility
When prices are rising, financing can be a practical way to keep your options open. By spreading the expense over time, you can manage cash flow and get access to the memory and resources you need to avoid slowing down your critical projects.
If you aren’t sure where to start, our PC Corp can connect you with reliable financing partners and manufacturer programs and help you sort through the choices that best support your technology roadmap and financial priorities.
Making Confident IT Procurement Decisions with PC Corp
Rising memory and storage prices aren’t a short-term spike, and they’re not something that will resolve with a quick market correction.
If your organization wants to navigate this period effectively, you’ll need to plan early, stay informed, and make decisions with a clear understanding of timing and trade-offs. That way, you’ll have more options, avoid rushed purchases, and maintain better control over your total technology costs.
Looking for outside support? At PC Corp, we offer IT procurement services for businesses in Calgary, Edmonton and beyond. Our team is here to work as an extension of yours, helping you plan, negotiate, configure, and manage technology investments across infrastructure, end-user systems, software and licensing.
If you’d like help understanding your options, timing, and next steps in today’s market, contact us to talk with our procurement team. We’re here to help you understand your options and choose what’s right for you.
