MSPs THE RAM CRUNCH


UK organisations are feeling the strain as a worldwide shortage of DRAM and NAND pushes up prices, extends lead times and disrupts upgrade cycles. Here, Steve Spittal, Technology Director at Pulsant, outlines the market forces behind the crunch and explains how channel partners can help customers stay resilient while supply remains tight.


T


ech headlines are being dominated by the perfect storm that has led to a global shortage of Random Access Memory (RAM). As the short-term, temporary memory


that handles data for processing and applications, RAM - and specifically Dynamic Random Access Memory (DRAM) – is a foundational business technology. Te primary driver of this shortage is an industry-wide shiſt to


High-Bandwidth Memory (HBM). Tis is the specialised memory required for artificial intelligence (AI). In the face of voracious AI demand, major manufacturers have reallocated up to 25% of their production capacity to meet this AI-specific market. This has effectively strangled the production and


consequent supply of standard DRAM used in servers, PCs, and networking gear. But for those in digital infrastructure, this has not been the


only impact of the intense demand for AI hardware. Hyperscale providers such as Microsoſt, Google and Meta have used their massive capital reserves to secure long-term supply contracts for this HBM. In effect, they have bought the future and ‘guaranteed’ the HBM


market. Tis has turned a short-term inflation of demand into a new normal, leaving everyone else in the mid-market and smaller businesses fighting for the remaining inventory of DRAM. Not only has this led to extreme price hikes – memory prices


have surged approximately 90% in Q1 2026, according to Counterpoint Technology Market Research – it has also massively extended lead times. Large DRAM orders now frequently exceed 40 weeks. Tis has already caused significant delays. Infrastructure


projects slated for 2026 have been pushed into 2027 or 2028. In the interim, businesses have been denied the opportunity to


simply sweat existing assets, as legacy technology is being phased out faster than expected. For industrial, medical, and automotive sectors that rely on older hardware, this is now a critical exposure to risk. Businesses that rely on a small group of suppliers and


producers are feeling the biggest impact. Customers now face profound uncertainty as the pricing they need to factor in for digital infrastructure projects is dramatically skewed. Many analysts predict this situation will run until mid-2027 at the earliest. Businesses that cannot lock in 18 months of


38 | May/June 2026


requirements now risk being discarded by vendors in favour of higher-margin AI customers. Tey face either having to cancel their digital infrastructure plans or make fundamental changes in how those projects will be realised.


IaaS as a practical route through the storm Infrastructure as a Service (IaaS) is one viable answer. Tat’s because terabytes of RAM are readily available, offering an effective alternative to weather the storm. Immediate capacity is already in place, and some providers, such as Pulsant, have even secured access to enough memory to service growth targets. Tis IaaS shield against volatility does not just negate the


40-week delays and 90% price hikes. It means that instead of a business over-purchasing RAM at peak prices to ‘future-proof ’ themselves, they can instead pay for the memory they need today, without risking their business continuity. Put simply, that means money is saved, and the business is protected. Tis current, acute crisis stems from deliberate capacity


reallocation as markets have changed. Te major question facing businesses is whether the direction of that change will reverse. Tere are signs that no such ‘return to memory as a


commodity’ will happen any time soon. Samsung Electronics has announced plans for a 50% HBM capacity surge in 2026, whilst SK Hynix has already begun HBM4 mass production. However, analysts suggest that if additional memory


production facilities come online as planned, late 2027 supply chains may normalise, especially if AI demand also eases.


www.pcr-online.biz


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52