IT infrastructure shortages are real and lasting. Here’s how to cope
Lead times of nine to 12 or even 18 months. Costs rising by 35%, 45%, even 50% to 200%. More than halfway through 2026, the market for IT infrastructure that’s crucial for enterprise projects, including those involving artificial intelligence, is strapped. Memory is at the root of the shortages. Memory prices “have risen by 50% to 200%, resulting in PC prices increasing by 35% to 45% and some…
The current IT infrastructure supply chain shortages are lasting and have a significant impact on enterprises, especially those involved in artificial intelligence. Lead times of nine to 12 or even 18 months, with costs rising by 35%, 45%, and even 50% are common. Jon Forest, VP analyst at Gartner, highlights that memory prices have skyrocketed by 50% to 200%, leading to increased PC and server prices by 35% to 45% and over 125%, respectively. Network switches, although requiring less memory, are also experiencing price and lead time hikes.
Industry experts attribute most of the issues to hyperscalers consuming large quantities of memory capacity, which then seeps down to servers, storage systems, and networking devices. While the source of the problem may be new, supply chain disruptions are not unprecedented. Industry insiders advise better utilization of existing resources, exploring non-conventional alternatives, and thorough planning with vendors and internal finance teams.
Matt Kimball, vice president and principal analyst at Moor Insights & Strategy, describes the current supply chain problem as "pretty bad," with companies accustomed to 30- to 45-day lead times now facing 6, 12, or even 18-month delays. Memory costs are expected to remain high well into 2027 and could constitute up to 25% of network hardware expenses by the end of 2027, according to Gartner.
This supply chain issue is projected to continue, with a further rise of 3% to 5% in 2027 and no signs of price reduction until the end of that year. Gartner predicts that enterprise network equipment pricing will increase by over 20% in 2026, with an anticipated further rise of 3% to 5% in 2027. While some suppliers might appear to fare better than others, no company seems immune to these shortages.
Written by urgent.news from Computerworld's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
