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Micron and Samsung executives this week said the memory shortage will continue for at least the next couple of years.
Micron CEO Sanjay Mehrotra expects demand for the firm’s memory to exceed its available supply over that period, he told investors last night.
Micron no longer sells consumer RAM, and Mehrotra’s statements refer to Micron’s business-to-business sales of high-bandwidth memory (HBM) for AI and DRAM for servers. However, his comments also have implications for consumer devices. Manufacturing capacity is prioritizing memory for AI and servers, limiting the supply of memory manufactured for consumer devices.
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Memory squeeze set to tighten through 2028, Micron says
The global memory shortage that has driven up the cost of servers, storage and PCs through 2026 will get worse in 2027 and 2028, according to memory maker Micron Technology.
“We expect memory and storage supply-demand conditions to be much tighter in calendar 2027 and 2028 than they were in 2026,” CEO Sanjay Mehrotra said in prepared remarks for the company’s fiscal fourth-quarter earnings call.
Even with new cleanroom space planned across the industry, “We do not have line of sight to when supply and demand will return to balance,” he said. Earlier industry forecasts had expected the two to return to balance in 2028.
Mehrotra added that new plants would not bring quick relief. “Production from new DRAM and NAND fabrication facilities takes time to ramp and gradually becomes more meaningful starting a few quarters after initial output,” he said.
Neil Shah, vice president of research at Counterpoint Research, said the outlook means CIOs “will have to be prudent about which equipment to upgrade and which to stretch to maintain cost efficiencies.”
Higher prices, less memoryOn the same call, CFO Mark Murphy said Micron’s “inventory levels and supply remain extremely tight.” Its DRAM prices rose by a percentage in the high teens in the fiscal fourth quarter, while NAND prices climbed about 30%, he said.
Taiwan-based market research firm TrendForce expects prices across the industry to keep rising. In a Sept. 30 report, it forecast that conventional DRAM contract prices will increase another 10% to 15% in the fourth quarter from the third. It expects NAND flash prices to climb 15% to 20%. The firm said increases are slowing but the market remains undersupplied.
IDC expects PC buyers to pay more as well. The research firm forecast in June that average PC selling prices will rise 17% in 2026.
TrendForce has also tracked a shift toward less memory per server. Cloud providers and OEMs have moved some servers from 96GB and 128GB memory modules to 32GB and 64GB modules since the first half of 2026, the firm said in a July report. Analysts had warned in January of higher prices and lower memory specifications for enterprise PCs.
Supply committed years aheadMicron has already committed more than 75% of its 2027 output, and most of its customer discussions now concern 2028, Mehrotra told analysts on the call.
Much of that supply is locked into multiyear, take-or-pay contracts that Micron calls strategic customer agreements (SCAs). “Any new discussions on SCAs where pricing is involved are negotiated with higher pricing based on prevailing market conditions and outlook,” Mehrotra said.
Some cloud providers have signed similar long-term agreements with memory makers, TrendForce said in its July report. That has left buyers without such deals as the main source of server DRAM price increases, it said.
Shah said enterprises should lock in pricing too. “Companies should secure multiyear pricing for the computing capacity they know they will need,” he said. Moving workloads to the cloud will not avoid rising hardware and energy costs “because providers will pass them on,” he added.
Which refreshes to delayWhen it comes to replacing existing equipment, Shah said, the right call depends on the workload. “For general back-office PCs and routine file servers, stretching lifecycles from three years to five is harmless,” he said. “But for core infrastructure and engineering seats, delaying refreshes can backfire.” Aging equipment can drag on productivity, lose software support and fail more often, he added.
Shah also cautioned against turning to older memory to save money. Memory makers have been converting production lines to high-bandwidth memory and DDR5, so DDR4 is no longer cheap or plentiful, he said. “If you buy legacy platforms today to shave 10% off upfront server costs, you’re buying into systems which won’t have serviceable parts two years from now.”
He recommended starting with the hardware already in place. “Enterprises often waste 30% to 50% of memory by provisioning for peaks that rarely occur,” he said. Right-sizing virtual machines, quantizing AI models and batching workloads more efficiently can cut memory use significantly, according to Shah.
Before buying more hardware, he said, “CIOs should think about optimizing on the silicon already in place.”
What hardware vendors sayHardware vendors had no helpful advice to offer budget-constrained buyers.
Lenovo did not answer questions directly but pointed to remarks executives made on its Aug. 13 earnings call.
Chairman and CEO Yuanqing Yang said then that he expects memory demand to keep rising and supply to remain constrained at least through the end of 2027. He said Lenovo can respond quickly to rising component costs: “When the material costs rise, we can adjust the pricing at the front end in a timely manner.”
Luca Rossi, president of Lenovo’s Intelligent Devices Group, said he expects the PC market to shrink about 15% in units in the six months to March, with business demand holding up better than consumer demand.
On the server side, Ashley Gorakhpurwalla, president of Lenovo’s Infrastructure Solutions Group, said a “strong server refresh cycle is underway.”
Dell, HPE, HP, Cisco and Supermicro did not respond to requests for comment by publication time.
This article first appeared on CIO.
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ServiceNow launches standalone AI service desk to provide support in Teams, Slack, and email
ServiceNow has a new take on the service desk: Flow by ServiceNow, a standalone AI product that allows users to get help via chats in Microsoft Teams, Slack, or a Flow web app, or by email, rather than having to leave what they’re doing to open a helpdesk ticket.
Flow can be up and running within a day, no implementation project or infrastructure required, the company said. The product can stand alone or plug into the ServiceNow platform for customers who need enterprise scale, governance, and cross-functional workflows, it said.
It’s a smart move, said Frank Dickson, principal analyst at Dickson Research. “The pitch is what Flow does not require. ServiceNow claims Flow can be running in a day with no implementation project, no CMDB migration, and no infrastructure. Every item on that list is something its flagship ITSM platform does require. ServiceNow is selling the absence of its own complexity,” he said.
Flow will connect to more than 100 systems through pre-built connectors. If the AI can’t surface the information it needs to fulfill a request from available data sources, Flow will escalate the issue to a human. Frequent requests, such as those for password resets, can easily be automated by IT, ServiceNow said.
Cost of consumptionCustomers don’t need an existing ServiceNow implementation to use Flow; as soon as it goes live, it can handle user requests. Pricing will be consumption-based.
ServiceNow customers who subscribe to its AI services will also be able to deploy Flow with no additional licensing costs; they will just pay for consumption via assists from their existing pool.
The product is currently available at no charge during what ServiceNow refers to as Controlled Availability. Organizations seeking early access can sign up on the Flow website.
Flow is now available to current ServiceNow customers in North America, and the company plans to make it generally available in North America and EMEA by year-end. Wider availability will follow in the first quarter of 2027, a company representative said.
Melody Brue, principal analyst at Moor Insights & Strategy, said that Flow is a logical next step for ServiceNow. “The company built its business around digitizing work that historically moved through tickets, forms, portals, and manual handoffs,” she noted. “The AI opportunity is to make that same operational depth easier to access through conversation and, increasingly, voice.”
Headless trade-offDickson said Flow rides a larger trend toward headless software, in which the engine runs in the background and uses someone else’s user interface, in this case Slack or Teams. But it’s a trade-off: “ServiceNow describes its platform as a single pane of glass. With Flow, it hands the glass to someone else. Whoever owns the interface owns the daily habit, and in headless software, the habit may become the relationship.”
That said, Brue saw Flow as a good fit for today’s market. “Customers want AI with a clear use case, quick time to value, and proof that it can do more than generate answers,” she said. “They want it to resolve real work. A standalone product also gives ServiceNow a lower-friction place to land (with the goal of expanding), reaching customers that may not be ready or have time for a full platform rollout.”
But, she said, while many vendors offer AI assistants, “the real test is whether this can reliably complete work across systems, with the right permissions, approvals, and human handoffs. ServiceNow has a credible foundation in workflow and service operations. The question is whether it can make that enterprise depth simple and fast enough to deploy for the product-led AI market it is targeting.”
With the current fierce competition to capture “the front door of work,” she said, “ServiceNow’s opportunity is to differentiate not just on the conversational experience, but on its ability to carry a request through governed workflow, approval, and fulfillment across systems.”
This article first appeared on CIO.
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Will ‘move fast, ship quicker’ kill the Apple brand?
Tech writers seem hugely excited at news that new Apple CEO John Ternus intends to launch a wave of new products, presumably because we’ll get to fill our feeds waxing lyrical about all the new things. But what does it mean when a company known for a few great products begins to introduce lots of potentially lesser gadgets?
Will this dilute the Apple brand? Extend it? Or will an even greater sense of product ubiquity amplify the core products it creates? Will Apple’s new hardware drive huge revenue, or are these plans just a sign the company now intends to capitalize on its brand equity with a wave of new devices, some of which may fail?
More things, more money?That’s not to say that the new products will fail, of course. I’m sure there are plenty of households that want an iPad on a base to use as a home security monitor, recipe-finder and call center to stay in touch with friends. I’m pretty certain touchscreen Macs and new all-glass-seeming iPhones will strike a chord.
All of these products will no doubt enable Apple to identify and offer new services to boost that side of its income. Services have become the second-largest revenue stream for 21st-century Apple, after the iPhone. Online commentators claim Ternus wants to generate more revenue from that part of the Apple family.
Breaking the patternThis shift in strategy suggests that a new internal culture may be coming into play at Apple, one that mirrors the ‘move fast and break things’ ethos that has become so popular in Silicon Valley while becoming vastly less popular outside it as we look at what the tech giants break.
But at Apple’s scale, the main risk it faces is breaking too much. Can it really afford to introduce products that don’t capture the zeitgeist, and to what extent do the company’s product designers see the zeitgeist of today? That seems to be a completely appropriate question when the company’s former lead designer now makes a living crafting expensive watches and cars for Ferrari.
A world in perma-crisis is less about aspiration and more about survival. Is distraction what we crave or a solution to what plagues us? Will Apple get it right with a tease of toys to delight us or bring in solutions that seem somehow less relevant to the masses? Can the company that gave us the iPod, the iMac, and the iPhone do something similar for the smart home? Distill the need, capture the zeitgeist, and design something possibly made in Vietnam we’ll buy for $$$…?
Or is it going to come up with the hardware equivalent of Ping?
We don’t have too long until we find out.
Solving the smart home crisisAt time of writing, reports claim Apple will begin its new assault with a product reveal on October 13, where it’s expected to introduce that combined iPad/HomePod I referred to above, along with a bunch of upgrades for its existing smart home products: Apple TV, HomePod, and a new homeOS to glue it all together.
If Apple gets this right, I do think it has a huge opportunity to open up the domestic intelligence market, given that so many of the products that have been thrown at that segment have proved pretty poor in the long run. How many times each decade are you supposed to replace a piece of smart kit, and is it really positive progress if its life span is a fraction of that of the utensil it’s meant to replace?
A company that can deliver robust, resilient, easy to set up smart devices that last at least as long as their mechanical alternatives could do pretty well, although Apple isn’t expected yet to offer up an AI-savvy garlic press or coffee percolator, and I’m still waiting on the Apple iBike I asked for more than a decade ago.
Finding the sweet spotIn the end, the clamor for product is all very well, but we have to ask ourselves what resonates best, what matters most, and what direction we’re going in culturally, as the sweet spot in product design is — as the iPod showed us long ago — almost certainly about summarizing all those needs inside one beautiful package that does one thing well that you didn’t know how much you needed.
Will Apple deliver? Will AI be its superpower to enable new product opportunity?
We’ll find out in a week or two.
Now please subscribe to my daily, human-curated Apple-related news headline feed at The Core, or follow me on BlueSky, LinkedIn, or Mastodon.
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