22 01732 759725 Tech 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 – specifically Dynamic Random Access Memory (DRAM) – is a foundational business technology. The primary driver of this shortage is an industry-wide shift to HighBandwidth Memory (HBM). This 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 AIspecific market, effectively strangling the production and consequent supply of standard DRAM used in servers, PCs and networking equipment. To make matters worse, hyperscale providers such as Microsoft, 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, turning a short-term inflation of demand into a new normal, leaving everyone else in the midmarket, and smaller businesses, fighting for the remaining inventory of DRAM. This has led to extreme price hikes – memory prices surged approximately 90% in Q1 2026 according to Counterpoint Technology Market Research – and to massively extended lead times to the point where large DRAM orders now frequently exceed 40 weeks. As a result of these delays, many infrastructure projects slated for 2026 have been pushed into 2027 or 2028. Ageing hardware and a closing procurement window In the interim, businesses have been denied the opportunity simply to 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 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. With many analysts predicting this situation will run until mid-2027 at the earliest, businesses that cannot lock in 18 months of requirements now risk being discarded by vendors in favour of highermargin AI customers. They face either having to cancel their digital infrastructure plans or make fundamental changes in how those projects will be realised. IaaS a practical way forward Infrastructure as a Service (IaaS) offers a viable way forward. That’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. IaaS avoids 40-week delays and 90% price hikes and means that instead of overpurchasing RAM at peak prices to ‘futureproof’ their operations, a business can pay for the memory they need today, without risking business continuity. Put simply, it means they can save money and ensure their business remains protected. The current, acute crisis stems from deliberate capacity reallocation as markets have changed. So, the major question facing businesses is whether the direction of that change will reverse. While there 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 and SK Hynix has already begun HBM4 mass production – analysts suggest that if additional memory production facilities come online as planned, supply chains may normalise in late 2027, especially if AI demand also eases. www.pulsant.com/tech-shortages Steve Spittal, Technology Director at Pulsant, outlines how IaaS can help UK businesses weather the global memory shortage Coping with memory loss TALKING POINT UK CIOs struggle to keep pace with AI adoption One in three CIOs wishes AI had never been invented, reveals new Logicalis report More than half of CIOs globally (51%) and one in three (36%) in the UK believe AI is being adopted too fast by their organisations, according to the latest CIO Report from global technology service provider Logicalis (Harnessing AI: IT Leadership in the Next Era of Enterprise Technology). While nine out of 10 UK CIOs say the appetite for AI adoption has increased in the last 12 months, many have misgivings about the lack of alignment between AI strategies and overall business plans, cited by 61% of UK CIOs; the impact of AI on business governance; and the lack of stable operating models which runs the risk of regulatory exposure, operational disruption and wasted investment. Almost two thirds (63%) of UK CIOs say staff lack skills for responsible AI use, risking compliance and reputational issues. More than three quarters (81%) say a lack of internal technical skill is a barrier to AI adoption within their organisation. Almost four out of 10 CIOs (38%) say that given the challenges it presents they wish AI had never been invented. Nonetheless, UK CIOs admit that AI is delivering value in specific areas, notably in improving day-to-day service delivery (59%), strengthening predictive analytics/forecasting and actionable business insights (57%) and enhancing the customer experience (48%). Neil Eke, UK CEO of Logicalis UKI, said: “What this latest research reveals isn’t hesitation, but realism. CIOs must now focus on building governance frameworks that evolve alongside AI deployment, ensuring innovation does not outpace operational resilience.” https://www.uki.logicalis.com/ Sources: https://counterpoint research.com/en/insights/ Memory-Prices-Surge-Up-to90-From-Q4-2025 https://www.trendforce.com/ news/2025/12/30/newssamsung-reportedly-plans-50hbm-capacity-surge-in-2026spotlight-on-hbm4/ Steve Spittal
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