IT Server and RAM Shortage
The Purchasing and Contract Management Office (PCMO) has been following market trends and actively discussing the future IT market conditions for server and RAM purchases. Due to AI infrastructure demand, there is projected to be a worldwide shortage for these supplies that is expected to limit availability and significantly increase pricing for at least the next year. Departments needing these supplies will need to plan and be prepared to work quickly to submit requisitions to ensure we can contract under the lowest possible price.
Steps all departments should consider when purchasing servers and RAM:
- While the University manages the market shortage, consider what your department can do to maximize the equipment currently in operation. Will an extended service agreement or other routine maintenance help extend the operational life of the equipment currently in operation?
- Work with our contracted vendors. Let them know in advance your department has an upcoming need. Plan appropriately.
- Contracted vendors who are resellers may not be able to hold pricing firm. Manufacturers have cancelled orders from resellers and have required resellers to execute a new PO at a higher price before they will authorize a reseller’s purchase. Taking this into consideration, working directly with a manufacturer may be the best option. If your need is over the $100,000 bid threshold, please reach out to discuss your need with the PCMO. The University may have alternative options available if the department can prove significant savings by moving ahead with a non-contracted vendor.
- The longer a department waits to make a purchase, the cost may be significantly higher.
- Manufacturers: Dell has said they are currently able to lock in quoted pricing for 15 days. This is by far the longest the PCMO has seen in vendors willing to hold their prices for these supplies.
- Resellers: We have seen quotes valid for as short as 3 days, and we often pay higher prices.
If you have any additional questions or concerns, please reach out to urbanapurchasing@uillinois.edu or 217-333-3505.