If your organization has been planning a server refresh over the next 12 to 24 months, you may have already noticed something unexpected:
Infrastructure costs are climbing.
Servers, memory, storage, networking equipment, and other critical hardware are becoming more expensive as global demand for AI infrastructure continues to accelerate. The world’s largest technology companies are investing hundreds of billions of dollars in AI data centers, creating unprecedented demand for many of the same components businesses rely on to run their own IT environments. Industry analysts report that this demand is contributing to higher prices, tighter supply, and longer lead times for enterprise hardware.
For organizations running any ERP system, this creates an important question:
Is now the right time to invest in another generation of on-premises infrastructure?
Many organizations have ERP systems that continue to deliver tremendous business value.
Those investments don’t lose their value simply because technology evolves.
Instead of replacing the ERP they trust, many organizations are choosing a different path: moving their existing ERP environment to the cloud.
A traditional infrastructure refresh often requires significant capital investment.
With enterprise hardware prices under pressure from AI-driven demand, those investments may cost more than organizations anticipated just a few years ago.
ERP Cloud hosting offers another option.
Rather than purchasing, maintaining, and eventually replacing physical infrastructure, organizations can move their ERP into a professionally managed cloud environment that delivers:
One of the biggest misconceptions about cloud migration is that it requires replacing the ERP itself.
In reality, many organizations continue running the same ERP they’ve trusted for years.
The difference is where it runs.
By moving to a modern cloud environment, businesses can preserve the workflows, data, and processes they’ve built over time while eliminating much of the cost and complexity associated with managing on-premises infrastructure.
No one can predict exactly how long today’s infrastructure pricing pressures will continue. However, analysts expect strong demand for AI infrastructure and memory components to remain elevated for the foreseeable future, continuing to influence enterprise hardware costs.
For organizations already considering a server refresh, office expansion, hardware replacement, or disaster recovery improvements, now is a good time to evaluate all available options—not just another hardware purchase.
The question isn’t whether your ERP should change.
It’s whether the technology supporting it should.
Check out our The Legacy Modernization Blueprint to learn how organizations are taking trusted ERP systems to the cloud while modernizing the technology behind them.
Mike Kaufman, Vice President of the Managed Infrastructure & Cloud Services (MICS) Division, leads the team responsible for helping companies develop a modern IT strategy that includes a combination of cloud hosting, managed platform and application services and on-premise technology.
