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description=LTO Technology was developed jointly by HPE, IBM and Quantum to provide a viable choice in a complex array of tape storage options.;

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e density and large data flows without overheating or failing even capable ai systems underperform if foundational elements lag related the next generation of ai infrastructure design starts with efficiencyconsider a quality inspection use case on a production line cameras storage and compute must match the conveyor s speed with real time inference if the pipeline can t keep up defective products slip through the same principle applies inside the data center a faster gpu cluster can be throttled by storage throughput network congestion or thermal limits this requires businesses to evaluate how systems work together rather than in isolation 2 prioritize power and cooling capacitya careful examination of power capacity and cooling infrastructure is necessary to determine whether an organization s technology infrastructure can support the heavy lifting required by ai workloads a rack designed for 5 kw won t serve a 20 kw ai node without enough power behind it an ai rollout can stall before it even starts reliable power delivery matters just as much as capacity and organizations must assess how much power their current environment can consistently supply and whether their cooling systems can handle the additional heat generated power supply and cooling must scale together to sustain continuous ai processing a gap in either undermines the system 3 establish security across the ai environmentai applications often process sensitive and proprietary data protecting those assets requires several layers of security including physical security network defenses and access controls a gap in any of these layers can expose the rest putting sensitive information at risk related property tax the value driver that ai data centers overlookorganizations should also assess ai specific risks including model manipulation and data leakage as well as any regulatory and policy obligations for their sector a comprehensive approach protects both the underlying infrastructure and the ai environment it supports treating security as foundational rather than an add on 4 decide between predictable and flexible costsdifferent organizations value cost predictability in different ways some need steady predictable spending to manage budgets while others prioritize agility and can accept variability neither approach is right or wrong the choice depends on the organization s infrastructure strategy and financial priorities which in turn determine how to approach ai spending shifting cloud pricing can add uncertainty align finance and engineering early to avoid mismatches organizations that require budget certainty shouldn t be surprised by variable bills and those that value flexibility shouldn t overpay for guarantees they don t need getting this alignment right from the outset means that ai spending decisions support the broader financial strategy rather than work against it as ai adoption grows finops principles help set guardrails while preserving room for innovation related the corrosion blind spot in the ai buildout5 build room to growai workloads rarely stay static demand can grow as organizations expand existing applications introduce new use cases or experience increased usage tied to broader organizational growth infrastructure built for today s workload can quickly become a constraint tomorrow this requires organizations to increase processing capacity and storage while also expanding the networks and cooling systems that support them scalability should be part of the infrastructure design from the outset building that flexibility gives the organization a way to respond as its ai requirements evolve from readiness to resultsai investments depend on infrastructure that supports them from initial deployment through future growth it leaders can use this five part framework to identify where their current environment falls short and prioritize the improvements needed to support their ai plans before committing to the next ai purchase assess readiness and close gaps or risk becoming the reason initiatives fail to deliver september 30 2026 how the great storage squeeze impacts infrastructure strategies this has been the year of the great storage squeeze where everyone from consumers looking to upgrade to the latest phones and computers to the largest enterprises planning to refresh their fleets of data center servers and storage systems has been impacted by unprecedented supply issues and the resulting significant price increases for the storage and memory components that are foundational to our digital lives the root cause of the issue is well understood hyperscale cloud and frontier ai builders are buying up enormous quantities of flash and dram to support exploding and increasingly data intensive ai use globally but this fact has not made the impact of the squeeze on the average enterprise any less severe out of the blue it leaders worldwide have been forced to revisit recalibrate and in some cases completely revise their infrastructure plans for this year and beyond at a moment when there are significant additional pressures on it leadership and operations from scaling their own ai initiatives evolving their virtualization architectures dealing with cyberthreats and generally managing global instability the timing could hardly have been worse storage shortage shrinks budgets reshapes strategiesat omdia a division of informa techtarget we wanted to understand how it infrastructure leaders have been impacted by and are dealing with the storage squeeze why it was clear from the outset that this was very different to the typical cyclical supply chain blip with no rapid resolution likely the impacts would extend beyond the short term given this it seemed likely that many it organizations would be forced into considering actions that extend beyond the immediate and into the strategic dimension the results of that study have now been published and i m happy to share a few highlights all organizations are impacted many severely and there s no immediate sign of improvement the study revealed that price increases for memory and storage had moderately or severely impacted the current it budgets for 87 of respondents most organizations said they are not expecting a significant improvement anytime soon with 77 believing shortages will continue to have a significant or moderate impact over the next 12 18 months of concern is the fact that almost three quarters of respondents 74 said the shortage is slowing their ability to deploy ai infrastructure on premises organizations are utilizing multiple strategies to muddle through in the first instance ever resourceful it leaders are resorting to multiple tactics to minimize the impact of rising prices and limited availability in the near term deferring noncritical purchases taking spend from other lines in the it budget sweating existing storage assets for longer than planned and tapping into cloud based storage as a temporary bridge are all popular choices for it leaders looking to make near term savings wherever they can a renewed emphasis on efficiency is reshaping longer term strategies eighty percent of respondents said they are now looking to improve the efficiency of their overall infrastructure storage efficiency technologies are not new but in a time of significant price inflation they have moved from nice to have to critical note that although this includes system level efficiency capabilities such as deduplication and compression many respondents are evaluating alternative approaches altogether considerations here include advanced tiering technologies that enable data to flow seamlessly across different classes of media for example from flash to hdd to cloud or even tape offerings that consolidate multiple infrastructure types such as primary secondary and backup archiving into fewer physical systems and software defined storage options that enable customers to separate data and storage management from the underlying hardware and for many the squeeze has only intensified their desire to move more of their environment to the public cloud 74 of respondents said the shortage is slowing their ability to deploy ai infrastructure on premises a key theme emerging from the research is that the timing magnitude and duration of the great storage squeeze of 2026 have had a profound impact on many it leaders while doing their best to ameliorate a difficult situation in the short term they also want to be better prepared if or when this happens again as a result longstanding assumptions about the underlying dynamics of the storage and memory market namely that availability will always be plentiful and that prices will always fall have been challenged indeed reversed accordingly it and infrastructure leaders are revisiting how they plan and build their data and storage environments as well as other critical aspects such as how they procure infrastructure how they work with suppliers and so on finally for now the research highlighted one further nugget this shortage has exposed a lack of deep understanding about the nature of the actual data the typical enterprise stores in a time of unprecedented price rises the huge volumes of dark data that many organizations retain translate into a massive cost it s also a huge untapped opportunity and potential source of significant risk i ll dive deeper into our findings here in my next post for now though the great storage squeeze of 2026 certainly has made its mark and will continue to shape it strategies for the foreseeable future simon robinson is principal analyst covering infrastructure at omdia omdia is a division of informa techtarget its analysts have business relationships with technology vendors september 03 2026 magnetic tape storage is booming again thanks to ai s unquenchable hunger for data magnetic storage bubble the linear tape open lto format was designed back in the 90s as an open standard alternative to proprietary tape formats now the magnetic storage technology is growing in both relevance and shipment volumes because ai companies can t seem to stop gobbling up digital data for llm training and inference workloads the now defunct doge initiative tried to get rid of magnetic tapes for alleged efficiency reasons but the legacy storage format is now more popular than ever according to the lto consortium the combined shipped capacity of lto compatible media experienced substantial growth during the first quarter of the year and things could have been even better if geopolitical uncertainties hadn t affected the market and companies business goals consisting of hpe ibm and quantum corporation the lto consortium works to promote and license lto ultrium technology to interested manufacturers the organization recently said that lto capacity shipments in q1 2026 grew by 57 compared to the same period in 2025 demonstrating that magnetic tape remains a resilient business and demand for tape based solutions keeps rising quantum ceo hugues meyrath highlighted how organizations are dealing with unprecedented growth in digital data and related workloads combined with rising hardware and power costs and increasing pressure to build more resilient cyber operations data growth is forcing enterprises to adopt long term storage solutions such as lto ultrium magnetic tape is once again becoming a strategic element of modern data infrastructures meyrath said and market results are proof of the change in 2024 lto media set a massive all time record of 176 5 exabytes in shipped capacity the market went through a modest 9 decline in 2025 with 160 3 exabytes shipped but the lto consortium is now forecasting renewed growth by the end of 2026 q1 2026 growth was driven by the increasing prevalence of lto 9 tapes which have a native capacity of 18tb and can store up to 45tb of compressed data newer lto 10 tapes released earlier this year can store 40tb 100tb of uncompressed compressed data and are likely to entice even more customers over the next few months storage analyst tom coughlin said that both ai workloads and traditional archival workloads can drive growth in the lto ultrium market many organizations are considering tape based solutions for both their primary and secondary storage platforms with tape media acting as a stable anchor in a mix of different storage solutions magnetic tape has always been a popular medium for cold storage applications because it can quickly provide terabytes of additional capacity at a low cost per tb the lto consortium is also hoping that customers will upgrade their existing solutions to newer lto generations which should further boost shipment figures october 10 2026 tape companies ship 160 exabytes of storage in 2025 ai data demands drive unprecedented data growth capacity shipped in q1 2026 rose 57 yoy driven by ai lto 9 momentum and early lto 10 uptake tape storage companies continue to celebrate substantial growth the format might seem archaic in the mid 2020s but on tuesday the lto program technology provider companies tpcs hpe ibm and quantum corp boasted of capacity shipment growth of 57 yoy in q1 2026 you guessed it ai data center demands have contributed to bumper tape shipments but so have the requirements for traditional archive workloads and cyber resilient backups latest videos fromtom s hardwarestay on the cutting edge get the tom s hardware newsletterget tom s hardware s best news and in depth reviews straight to your inbox october 10 2026 can the uk s data centre infrastructure keep pace with the ai boom organisations across manufacturing cybersecurity finance tax retail and hospitality are turning ai pilots into measurable value through trusted data governance and human judgement at scale october 10 2026 tape still isn t dead but shipments slipped by 16 exabytes in 2025 storagetape still isn t dead but shipments slipped by 16 exabytes in 2025lto program is confident this is a glitch not terminal unspoolingtape is still not dead but it s not in rude health either after shipments slipped by 16 exabytes in 2025 that number comes from the lto program the alliance of hpe ibm and quantum corp that together tends the linear tape open lto format that accounts for around 85 percent of all tape sales the program delivers an annual data dump describing the previous year s shipments and this year s effort landed on tuesday with news that 160 3 exabytes worth of lto tape went out the door during 2025 nine percent down from 2024 s 176 5 exabytes the lto program pointed out that 2024 represented an all time high and that 2025 s shipments are the second highest result for the format the trio quoted storage analyst tom coughlin as saying the reason for the 16 exabyte slip was the evolving international trade environment which he thinks contributed to more cautious purchasing behavior with businesses across a wide range of industries adjusting their sourcing and inventory decisions accordingly we suspect that if this uncertainty is resolved the...