Businesses can still move ahead with artificial intelligence (AI) projects despite a shortage of memory and other computer parts. Paying only for the computing services they use and getting longer support for existing equipment could help them manage costs.
Prices of laptops, smartphones, servers, and storage have gone up, with no clear end to the increases.
“I think it’s only now or maybe next year that we’ll see more AI implementation in the country, more data centers, more hyperscalers that are going to be built in the Philippines,” Jimmy Go, president and CEO of VST ECS Philippines, Inc., one of the country’s leading information and communications technology (ICT) distributors, said at a media briefing during the VSTECS CXO Tech Summit held recently in Boracay.
Go was referring to the facilities that house computing equipment, including those run by hyperscalers or the large cloud service providers. He expects more of these facilities in the Philippines as the country catches up with its neighbors in using AI.
Businesses now face shortages of several parts needed for these systems. These include memory, solid-state drives (SSDs) that store data, and graphics processing units (GPUs), chips used to handle heavy computing work such as AI.
“There are models that you can actually use to be able to help enterprises consume the IT they need,” said Walter So, managing director of Hewlett Packard Enterprise (HPE) in the Philippines, said.
HPE offers this through GreenLake. Customers can use a private cloud, or computing services reserved for their organization, in their own data center or another facility. They pay for the resources they use.
So said this arrangement helps customers manage the cost risks caused by changing memory prices, which technology providers cannot control.
Daryush Ashjari, APJ Chief Technology Officer (CTO) and Vice President for Solution Engineering at Nutanix, said technology companies are working to make existing systems run more efficiently and extend their technical support.
He pointed to flooding in Thailand and the COVID-19 pandemic, both of which disrupted hardware production. The industry found ways to respond then, he said, although the current shortage will take time to address.
“This is not going to be an easy fix. It won’t be a short fix,” Ashjari said.
He encouraged businesses to continue exploring AI and said he remained optimistic about the industry’s ability to adjust.
Equipment costs are only part of preparing for AI. Businesses also need people who can set up and maintain the technology, protect their systems, and manage their data.
“We believe that the AI transformation is evolving very fast. VSTECS needs to evolve also faster than our vendors and our customers,” Cherry Centeno, First Vice President and Group General Manager for Value Business at VST ECS Phils., Inc.
Centeno said the distributor is investing in technical training and engineers to help meet those needs. VSTECS has more than 300 engineers who provide help before and after a sale. They explain how products work, install systems, and provide technical support for its products and AI tools.
The company also has a demonstration center where partners and customers can try AI tools before putting them to work in their businesses.