Server Memory – Product Spotlight

Ultra-Reliable, Certified Server Memory from OSI Hardware Delivers Big Value as Market Demand Jumps and Prices Climb

Strong Growth in the Server Sector is Driving Up DRAM Prices, Making the Case Even Stronger for OSI Hardware’s Competitively Priced Memory Modules

Data is everywhere and the rate at which it is being created is growing faster than ever. Artificial Intelligence, the Internet of Things (IoT), autonomous vehicles, and the global proliferation of cloud infrastructure platforms and hyper-scale datacenters are all giving a boost to server sales and the DRAM (Dynamic Random-Access Memory) memory which enables them to store and move data. Research firm IDC says worldwide server revenues soared 19.9% year over year to $17 billion in the third-quarter of 2017, with overall shipments up 11.1% to 2.67 million units.

As demand continues to outstrip supply, industry analysts such as Gartner predict prices will rise further, straining the capacity of the world’s top three server DRAM suppliers: Samsung, SK Hynix, and Micron. Despite anticipated production increases from within the white-hot sector, manufacturers and supply chain vendors eagerly anticipate higher average selling prices (ASPs) for the foreseeable future.

For OEMs and VARs, its welcome news that 2018 will see steady sales volume and upward pressure on revenues. For buyers, it adds to the never-ending challenge of improving infrastructure performance without breaking the budget.

However, there are steps executives and purchasing managers can take to sidestep these market forces in the newly energized server memory sector. As a long-time supplier of top-tier memory to thousands of enterprise customers, OSI Hardware has established an enviable track record of delivering ultra-reliable, quality tested DIMM (dual in-line memory module) products with a near-zero escape factor. The winning combination of world-class excellence, aggressive price points, and industry-leading fulfillment standards, has resulted in intense loyalty among buyers of the OSI-branded DDR, DDR2, DDR3 and DDR4 DIMM memory modules.

“We based our entry into memory entirely on meeting our objective of sourcing product that we could feel comfortable would compete on every level, across the entire sector,” says Christian Saunders, president and co-founder of OSI Global IT. “We’re not just shipping memory with among the highest quality standard in the industry, we’re providing the exact RAM installed by many of the leading server manufacturers, and at a price point 70% to 90% below OEM list.”

Attaining Certified Memory Status:
Reliability, Stability, Testing

Establishing a footprint in the enterprise memory business is not a trivial undertaking, Mr. Saunders emphasizes. Beyond the imperative of safeguarding the trust OSI Hardware has earned over the years from thousands of clients, there is the challenge of meeting stringent pricing/quality expectations for new, mission-critical IT infrastructure products such as server memory.

Servers depend on their processors to efficiently use system memory to temporarily store the information in play, including the operating system, software applications – essentially all the data being stored and moved. To ensure optimal reliability of the server’s functions, the memory module must run efficiently and with near zero-error rates.

“We conducted exhaustive research to find the ideal partner,” Mr. Saunders states. “Of course, it’s possible to find suppliers offering cut-rate pricing but not from a manufacturer supporting the latest generation DDR4 (double data rate fourth-generation synchronous) DRAM specifications and with the quality assurance to guarantee the equivalent performance and reliability of higher priced components from OEM vendors.”

Manufactured by a Tier 1 world leader in design and fabrication, each OSI Hardware memory product is produced, tested and factory sealed in an ISO 9001-certified facility. Rigorous standards result in optimal performance, best in class power efficiency, and maximum data processing and burst access rates. All OSI-branded memory is backed by an unconditional lifetime warranty with next-day replacement.

Outperforming the OEM Memory Vendors

Since introducing OSI-branded modules in 2011 as an outgrowth of the company’s mainstay pre-owned router, switch, server, cabling and OSI Optics businesses, the memory marketplace has seen several transformations. Depending on supply and demand, the status of memory has fluctuated from being a scarcity component distributed through an often tightly controlled supply chain to a plentiful and ubiquitous commodity item.

As the fortunes of the memory category and the handful of companies that manufacture it have blossomed and waned, so too have prices.

“We’re seeing the market for server systems gaining significant momentum, which obviously ratchets up demand for high-capacity DRAM modules,” Mr. Saunders states. “Based on industry projections, we’re advising our customers that price increases will likely accelerate in the OEM memory market. Thanks to our strong supply chain, our commitment is to hold the line on pricing for our products by tightening margins.”

With the ongoing growth and maturation of the Third-Party Market (TPM) for IT hardware and maintenance services, enterprises are increasingly looking to non-OEM suppliers for better value. According to a recent review of account activity among OSI Global IT customers, this is becoming especially relevant in the sourcing of memory.

“The validity of buying from the secondary market and new products from third-party vendors has increasingly been recognized and tracked by Gartner and other analysts,” Mr. Saunders4 says. “Buyers are now recognizing that just because memory carries labels with Cisco, Dell, IBM, or Lenovo logos, they’re no different and certainly not superior to OSI Memory or any of our other carefully sourced private labeled offerings.”

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About OSI Hardware

OSI Hardware is a leading supplier of pre-owned, surplus and new in-box IT infrastructure hardware for organizations seeking to break free from the constraints imposed by outmoded and self-serving OEM business practices. Our expertise and strong partnerships within the secondary market empowers our customers to avoid unnecessary expenditures, minimize complexity, and maximize the buying power of their IT budgets. OSI Hardware’s massive inventory of name brand routers, switches, servers, optics and cabling manufactured by Cisco, Juniper, Brocade and dozens of other vendors are consistently priced at 10% to 40% less than any available OEM price discounts. Our global reach and dedication to ensuring technology serves the business requirements of our customers has made us the “go-to” technology resource for clients here in the U.S. and Canada, and across the globe.

For more information, call 1-866-602-4674 or visit www.osihardware.com.