What the Current Shortage in DRAM Memory Chips Could Mean For Your Business - Envision Technology Advisors' blog

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What the Current Shortage in DRAM Memory Chips Could Mean For Your Business

If you’ve tried to purchase any systems that use DRAM memory chips recently, you were likely in for a bit of a surprise. Those systems were either somewhat more expensive than you expected, or they were on deep backorder. If you plan to make any technology purchases in the next few months, this is a situation that could impact you and your business.

What is DRAM and Is My Company Using It?

The acronym DRAM stands for “Dynamic Random Access Memory”. This is a type of memory that is commonly used in the computer chips for devices including PCs, workstations, and servers. DRAM is used on chips across a variety of device manufacturers. In fact, it is the most common type of computer memory that is used today.

Bottom line – your company has devices that use DRAM.

What is Happening with DRAM Inventory?

DRAM chips are currently in short supply. The reason for this varies depending on who you ask – some reports say that the main manufacturers of DRAM-enabled chips went too low in their forecasts, meaning that they did not produce enough chips to meet current demand. Other reports suggest that these shortages, which have led to price increases for the chips, may be intentional. China has even launched a probe into price-fixing allegations against these DRAM manufactures.

While it is certainly understandable that you would want to dig deeper into the reasons for the current DRAM shortage, what is most important right now is to understand the impact it could have on your business. If you expect that you will need to make any purchases of PCs or servers in the next few months, here’s our suggestions:

  1. Plan ahead – because of the DRAM shortage, many devices are being placed on backorder. This can be a problem if you need something shipped to you immediately because you have a new employee starting or you need to replace a broken or lost device. If you need a very specific device, likely because that is what your company has settled on for certain endpoints, there may not be immediate availability of that device. Your best bet is to plan ahead and maybe even keep some devices in stock in case of an emergency.
     
  2. Let us help you get the right price – while availability of devices is certainly a concern, so is pricing. Because of the DRAM shortage, prices for that memory have climbed, which means that the prices for devices that use that memory have also seen an increase. If you have budgeted a specific amount for your devices, likely based on what you have paid in the past, current prices may blow that budget out of the water. This is an area where we can help. We have a strong partnership with Dell Technologies, which we can leverage to help you get the right price for the equipment you need. We also work with a number of distributors and have an entire purchasing team at Envision dedicated to this and this alone. You do not need to spend your time chasing the right price or looking for which units are available – our team can do that for you.
     
  3. Stay informed – like most things in technology, the current state of DRAM pricing and availability is certain to change at some point. You need to stay informed about what is happening with DRAM, as well as other aspects of technology important to your business. Envision can help here as well. We are committed to sharing our expertise and knowledge at our events, here on our blog, and through our various social media channels. Connect with us on the channels that work best for you and let us keep you up to date on the latest technology happenings. Additionally, if you have a specific question that we may not have yet addressed in one of those channels, you can always contact us directly and let us know what is on your mind.

In Closing

This is not the first time that there has been a shortage of computer memory, nor it is likely to be the last. With the right plan and a partner like Envision, your company can navigate this shortage with minimal impact or disruption to your business. We look forward to working with you soon.

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