Will your next hardware upgrade have to be delayed?

hardware upgrade delayed? - DRAM prices may increase by as much as 20%

Posted on Friday, November 17, 2017

Demand for the all-new Apple iPhone X has had an effect on all parts of the consumer technology market – but now it seems that enterprise IT is about to run into problems too. According to market analyst DRAMeXchange, high-speed DRAM memory is currently in short supply due to a surge in sales of premium smartphones.

The research suggests that DRAM prices have already increased by 5% over the last quarter, and continue to rise. DRAMeXchange have warned that DRAM could easily increase by a further 15% in the run-up to Christmas. The picture is marginally better for server DRAM – prices are expected to increase by 10% over the next three months

A big effect on server pricing?

As DRAM prices escalate, OEMs are likely to raise their own prices to cover the shortfall. For a major upgrade project, the cumulative effect could be significant, especially if the budget has no additional contingency to cover this unexpected increase. 

CTOs may have to put their upgrade plans on hold – which creates a problem when the migration is due to hardware reaching end of service life. OEMs may consider a custom agreement, but the new contract will last one year, and be significantly more expensive too.

A stop-gap. Or a complete stop (if you need it)

A third party support provider like CDS can provide a helpful stop-gap if your upgrade project has to be placed on hold. With contracts lasting as little as six months, with monthly extension flexibility, third parties can provide support and spare parts for servers and storage even after the warranty expires.

When dealing with CDS, the level of support received will be at least as efficient as that received from your OEM – but also much less expensive. Often as much as 50% lower than what you are paying now.

This means that the soaring cost of DRAM may actually be one of the biggest cost-saving events of the year – at least as far as your servers and storage arrays are concerned. Because that upgrade sold by your OEM may not actually be necessary at all, you can keep your systems in place for as long as you need.

Whether you want temporary coverage for your post-warranty assets, or a longer term solution that keeps assets in play for several years, CDS can help. Give us a call today to learn more.

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