Supply chain disruptions
Geopolitical tensions and ongoing logistical challenges have disrupted global supply chains, limiting the availability of key components.
What’s happening: The surge in IT hardware prices
Why are prices increasing?
Microchips and RAM are the backbone of modern IT infrastructure, powering everything from servers and laptops to cloud platforms and advanced analytics. Their critical role means that any disruption in supply or spike in demand has an immediate and significant impact on hardware availability and pricing. Currently, the cost of IT hardware is increasing due to:
Surging demand
The rapid adoption of AI and the increase in demand for AI data centre infrastructure has driven unprecedented demand for microchips and RAM.
Production constraints
Manufacturers have shifted their production to produce HBM high-bandwidth memory over DDR5 ram which are currently used in notebook and PCs, leading to shortages and higher costs for memory chips and processors.
The impact on businesses
Increased IT spend
Businesses are paying higher prices for technology, putting businesses at risk of overspend. The price increases are expected to continue in the future.
Budget uncertainty
Unpredictable hardware costs make it difficult for IT and finance leaders to plan and allocate resources.
Procurement delays
Longer lead times can disrupt project timelines and hinder innovation.
Rising hardware costs and supply delays are putting significant pressure on IT budgets and refresh timelines. We are supporting our customers by engaging early and securing hardware pricing now with their preferred suppliers to protect their budgets and refresh their technology as planned
Alex Terrone, Head of Corporate - Australia, CHG-MERIDIAN
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Alex Terrone
Head of Corporate - Australia
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