Component Crisis

The Component Supply Challenge

Understand the structural pressures affecting memory, storage, infrastructure pricing and long-term availability.

Request a Call Ways we can help

A Market Under Pressure

Over the past 6–9 months, organisations have entered a period of unprecedented volatility in core IT infrastructure pricing - particularly across memory and storage components.

This is not a typical market fluctuation. It represents a structural shift in how hardware is produced, prioritised, and delivered globally.

Driven by the rapid expansion of AI infrastructure, global manufacturers are reallocating capacity toward high-performance memory and data centre technologies. As a result, traditional enterprise hardware - servers, laptops, storage, and networking - has become harder to source, slower to deliver, and significantly more expensive.

This shift is expected to persist for years, not quarters, with supply constraints and price pressure forecast well into 2028.

At the same time, organisations are operating under increasing expectations:

security

Stronger cybersecurity and compliance requirements

sync_saved_locally

Continuous uptime and resilience

rocket_launch

Faster onboarding and digital delivery

The result is a more complex procurement landscape - where cost, risk, and timing are now tightly interdependent.

The Impact

The impact of this crisis is already visible across the entire hardware ecosystem.

Organisations are experiencing price increases measured in multiples, not percentages, within standard procurement cycles. In some cases, quotes have risen by up to 700% within six weeks.

Manufacturers are prioritising High Bandwidth Memory (HBM) for AI data centres, which are projected to consume ~70% of global high-end memory supply.

This is reducing availability of:

  • Server-grade memory, especially high-density DIMMs
  • Business laptops, including 16GB and 32GB configurations
  • Networking equipment requiring fast DRAM caches
  • Laptops and mobile workstations: up to 12-week delays
  • Server infrastructure: delayed refresh cycles
  • Networking and security appliances: rising costs and constrained supply

Because RAM and NAND often share production lines, SSD pricing is also increasing - further compounding infrastructure costs.

Unlike previous shortages, this is not a short-term disruption. Capacity expansion takes years, meaning price and availability pressures are unlikely to normalise quickly.

The Risks

Without a shift in strategy, many organisations are being forced into difficult trade-offs.

warning

Strategy now determines exposure.

These risks are connected. Cost, availability, security and performance decisions are no longer isolated procurement choices - they directly affect operational resilience.

Delaying procurement is no longer cost-neutral. In a volatile market, waiting can result in materially higher costs for the same specification.

Ageing infrastructure introduces:

  • Higher failure rates
  • Reduced performance
  • Increased downtime exposure

Security requirements have not relaxed. Delayed upgrades or under investment can lead to:

  • Patch gaps
  • Unsupported systems
  • Increased audit and insurance risk

Delayed device availability impacts:

  • New starter onboarding
  • Project delivery timelines
  • End-user productivity

Moving to cloud under pressure can:

  • Increase long-term cost
  • Reduce visibility and control
  • Introduce new architectural risks

Ways We Can Help

Consultancy & Strategy

We provide vendor-agnostic advisory to help you understand your exposure to cost volatility, align procurement with business priorities, and build a resilient 2–3 year infrastructure roadmap.

Consultancy and strategy placeholder image

Break-Fix & Lifecycle Support

Extend the life of existing infrastructure with proactive maintenance, rapid break-fix services, and support strategies designed to minimise downtime while new equipment is delayed.

Break-fix and lifecycle support placeholder image

Flexible Procurement & Leasing

Reduce upfront cost pressure and improve cash flow with flexible financing and leasing models - enabling you to act now without compromising long-term budgets.

Flexible procurement and leasing placeholder image

Refurbished & Certified Hardware

Access high-quality refurbished equipment to bridge supply gaps, maintain continuity, and unlock value from existing assets through buy-back and remarketing programmes.

Refurbished and certified hardware placeholder image

The most resilient organisations are not panicking - but they are adapting. Common themes include:

1.

Time as a cost driver
Procurement delays now carry real financial impact; approval flows are streamlined to avoid rework and deadlock.

2.

Staged delivery over perfection
Phased rollouts and modular scaling reduce risk - avoiding “full refresh” approaches.

3.

Intentional compute placement
On-prem for predictable workloads; cloud used selectively where it adds agility.

4.

Protecting security outcomes
Patching, backups, DR, and tooling remain non-negotiable; trade-offs are deliberate.

5.

Planning with ranges
Budgets include volatility; focus shifts to acceptable risk, not exact price.

support_agent

Contact Us

Contact your Account Manager or our sales team for expert guidance on managing supply constraints, reducing cost volatility, and building a more resilient procurement strategy.