Will Rising SSD Prices Affect On-Prem Email Archiving? What IT Budgets Should Expect
Rising SSD prices from AI demand and NAND shifts will reshape on‑prem email archiving budgets. Practical TCO, capacity planning, and procurement steps for 2026.
Rising SSD prices are real — here’s what IT budgets must plan for now
If your procurement team is already seeing higher SSD line items, you’re not alone. In 2025–26 the semiconductor market has been reshaped by surging AI demand, constrained fab capacity, and new NAND innovations like PLC flash. For IT leaders responsible for on‑prem email archiving, that combination creates near‑term cost pressure and long‑term opportunity. This article explains the supply‑side drivers, technical tradeoffs, and exact budgeting and capacity‑planning steps you should take in 2026 to keep archiving reliable, compliant, and cost‑predictable.
Executive summary — what matters most (read first)
Short version: SSDs are more expensive in 2025–26 because semiconductor fabs prioritized AI memory and HBM/HDD controller demand, and NAND vendors are rolling out denser but lower‑endurance PLC parts. That pushes up acquisition costs for NVMe/SATA SSD tiers used in on‑prem email archiving appliances. The immediate impact: higher capital expenditure per TB, potentially higher support and replacement costs, and pressure to rethink tiering and lifecycle planning.
Immediate actions (next 90 days):
- Freeze and validate retention policy — remove unnecessary long retention that forces hot‑tier SSD growth.
- Audit existing archive indexes and metadata to quantify storage overhead per mailbox.
- Revisit vendor quotes with endurance and rebuild time SLAs — negotiate fixed pricing windows.
- Plan a hybrid architecture: use SSDs for indexing and write buffers; HDDs or cloud for bulk cold storage.
Why SSD prices jumped (2025–26 market drivers)
To budget effectively you must understand the supply‑side story:
- AI memory demand: Large language models and generative AI workloads increased demand for high‑bandwidth memory and NAND used in data center caching and swap layers. That pulled fab capacity away from client and enterprise SSDs.
- Fab allocation and lead times: Several major foundries prioritized HBM, advanced logic, and controller ICs. NAND wafer allocations tightened and lead times extended into quarters rather than weeks.
- NAND density transitions: Vendors (notably SK Hynix in late 2025) advanced PLC (5‑bit per cell) prototypes by splitting or “chopping” cells to achieve higher effective density. PLC promises lower cost/TB long‑term but has lower endurance and more complex controllers — adoption to mainstream enterprise SSDs remains gradual into 2026.
- Geopolitical and capex effects: CHIPS Act and EU semiconductor investments are redirecting new fab capacity, but new fabs take years to materially affect NAND supply, so price pressure persists short‑to‑medium term.
What PLC and other NAND advances mean for archiving
PLC can lower $/GB when mature, but early PLC SSDs target cold‑capacity drives with limited write endurance and slower write amplification characteristics. For email archiving this creates a tradeoff: you can buy denser drives for bulk storage, but you must design carefully around endurance, rebuild performance, and error rates.
How rising SSD prices affect on‑prem email archiving
There are immediate and downstream impacts for typical on‑prem archiving stacks:
- Capital expenditure (CapEx) increases: Higher $/TB on NVMe and SATA SSDs raises initial appliance cost and refresh budgets.
- Operational expenditure (OpEx) pressures: Lower‑endurance drives may increase replacement rates (higher OpEx) and longer rebuilds can increase exposure to degraded performance during failures.
- SLA and compliance risk: If you substitute cheaper PLC/QLC drives without validating endurance and latency, search/index performance and eDiscovery SLAs can suffer.
- Architecture rebalancing: Organizations will need to shift workload responsibilities — SSDs for indexing/metadata/hot files, HDD or object storage for cold blobs.
Practical capacity planning and TCO modeling for 2026
Capacity planning must connect mailbox behavior to physical storage. Use real metrics and model multiple scenarios.
Key metrics to measure now
- Average mailbox size and annual growth rate per user.
- Retention policy (legal hold vs routine retention) and percent of mail under legal hold.
- Index and metadata overhead (indexes can be 5–20% of message store depending on technology).
- IOPS and throughput needs for search and ingest peaks (important for sizing SSD cache tiers).
- Change rate — percent of messages modified or deleted monthly (affects write amplification and SSD endurance).
Simple capacity model (example)
Use this to get an initial TCO estimate. Replace numbers with your metrics.
- Users: 5,000
- Average mailbox archive size: 6 GB (retained in archive)
- Annual growth per user: 10% (roughly 600 GB/year total growth)
- Total initial archive size: 5,000 * 6 GB = 30 TB
- Index/metadata overhead (10%): 3 TB
- Working (hot) set for SSD caching (5%): 1.5 TB
- Cold store: 30 TB - 1.5 TB = 28.5 TB (candidate for HDD/object)
Now factor cost. If enterprise NVMe SSDs cost $100/TB (hypothetical) vs HDD at $15/TB, the delta for the hot tier is material. But if SSD prices rise to $200/TB, caching costs double while cold HDD cost remains stable.
Endurance math — avoid surprises
SSDs are specified in DWPD (drive writes per day). Archive workloads are typically read‑heavy, but initial ingest and indexing can be write‑intensive. Calculate expected writes/year and validate DWPD:
Expected TB writes per year = (average daily ingest * 365) * amplification factor
Required DWPD = (TB writes per year) / (drive capacity * 365)
Ensure the drive’s specified DWPD covers that for the retention period you expect before replacement.
Procurement strategies to blunt price volatility
Hardware procurement must become proactive and flexible.
- Stagger purchases: Avoid buying the entire fleet at once. Spread purchases over 18–24 months to average price volatility and avoid simultaneous refresh windows.
- Negotiate fixed‑price windows: Push vendors for price locks for 6–12 months or contractual rebates if NAND prices fall.
- Consider leasing or consumption models: If CapEx is constrained, leasing or storage‑as‑a‑service can convert spikes into predictable OpEx, though evaluate long‑term TCO.
- Buy right‑sized endurance: Don’t overpay for high DWPD when archive writes are low; choose SATA/QLC for cold and enterprise NVMe for metadata/hot indexes.
- Trade in and refresh policies: Negotiate trade‑in credits and extended warranty bundles that include scheduled refreshes to lower lifetime TCO.
Architectural recommendations — build resilience and cost efficiency
Design your archive so rising SSD prices don’t force risky, last‑minute choices.
1. Use tiered storage with clear service boundaries
Implement a three‑tier model:
- Hot tier (NVMe SSD): Indexes, recent 30–90 days of messages, search cache. Requires low latency and high IOPS.
- Warm tier (SATA/QLC SSD or fast HDDs): Recent year of archive, infrequent writes, periodic access.
- Cold tier (high‑capacity HDD or object storage): Long retention, WORM compliance, lowest $/GB.
2. Adopt object storage (S3‑compatible) for cold blobs
On‑prem object stores like MinIO or appliances from major vendors let you use erasure coding and cheaper HDD trays while keeping data on‑site for compliance. Use SSDs only for metadata and small hot objects.
3. Invest in dedupe, compression, and content fingerprinting
Modern archiving systems with block‑level dedupe and per‑tenant compression reduce raw capacity needs by 20–60% depending on your mail patterns. That’s the highest ROI lever in a high $/TB environment.
4. Validate rebuild and RPO/RTO under degraded conditions
Lower endurance or denser drives increase rebuild times after a failure. Model degraded performance and test eDiscovery searches during rebuilds to ensure SLAs hold.
Billing, SLA, and vendor comparison guidance
When comparing vendors and cloud tiers, read the fine print:
- Per‑GB vs per‑user billing: Per‑GB may feel fair, but indexing and metadata often create hidden costs. Ensure vendors include index overhead in the calculations.
- IOPS tiers and burst credits: Vendors sometimes throttle sustained IOPS on cheaper tiers — validate your peak search and ingest needs.
- Egress and retrieval charges: For hybrid models, consider cloud egress costs for pulls during eDiscovery. Those can exceed storage fees.
- Replacement SLA: Speed of replacing failed drives, and who pays for rebuild compute, matters when denser drives elongate rebuild windows.
Two short scenarios — numbers you can reuse
Scenario A: Midsize firm (2,000 users)
- Archive size per user: 8 GB → 16 TB total
- Index overhead: 10% → 1.6 TB
- Hot tier requirement: 5% → 0.8 TB (use NVMe)
- Cold store: ~15.2 TB (use high‑capacity HDDs or on‑prem object)
- Procurement choice: Buy 2 x 8 TB NVMe for hot and a 60 TB HDD appliance for cold. If SSD $/TB rises by 50%, hot tier cost increases by <$5K but overall TCO driven by dedupe/compression gains.
Scenario B: Enterprise (50,000 users, legal retention heavy)
- Archive per user: 25 GB → 1.25 PB raw
- Index overhead: 15% → ~188 TB
- Hot tier: 3% of active set ~40 TB
- Recommendation: Use SSDs only for metadata and a small hot cache; move majority to on‑prem object tier with erasure coding and tape for deep archival if compliance allows.
- Procurement strategy: Staggered appliance rollouts, large trade‑in clauses, and a hybrid cloud contract for overflow—this smooths price spikes and shifts risk to vendor SLAs.
Future predictions for 2026 and beyond
Expect three trends through 2026:
- PLC adoption grows, not overnight: SK Hynix and others will iterate PLC drives into enterprise stacks, but initial deployments will prioritize cold, read‑mostly workloads. Mainstream enterprise NVMe will remain TLC/QLC for a few more years.
- Hybrid and software‑defined storage proliferate: Organizations will increasingly decouple storage software from media to swap underlying media as prices change.
- Cloud‑hybrid economics sharpen: Egress costs and compliance lead to predictable on‑prem object tiers for archived mail, with cloud used for elasticity during eDiscovery spikes.
Rule of thumb for 2026: Treat SSDs as performance accelerators — not the primary long‑term capacity medium for email archives. Optimize metadata and indexing for SSD, move bulk blobs to cheaper media.
Actionable checklist — what to do this quarter
- Run an archive audit: mailbox sizes, retention classes, index overhead, and daily ingest.
- Classify data by access pattern: hot (0–90d), warm (90–365d), cold (>365d or legal hold).
- Model three procurement scenarios (best/likely/worst) with current SSD pricing and +30–50% stress case.
- Negotiate procurement terms: staged delivery, price locks, and trade‑in credits.
- Deploy or expand object storage for cold blobs and keep SSDs for metadata and search acceleration.
- Test rebuild and eDiscovery performance under degraded conditions.
- Review SLAs and billing models for cloud/hybrid vendors, focusing on IOPS, egress, and retention accounting.
Final thoughts — balancing risk, performance, and cost
Rising SSD prices in 2025–26 are a real headwind, but they also force a healthier discipline: better retention hygiene, smarter tiering, and clearer SLAs. Semiconductor advances such as PLC will eventually reduce $/GB, but they introduce new endurance and performance variables that must be managed. The smartest path is to optimize where SSDs are used and push capacity to cheaper media while protecting search and eDiscovery SLAs with adequate caching and indexing strategies.
Takeaways
- Measure first: Accurate mailbox and index metrics drive the right purchasing decisions.
- Tier aggressively: SSD = speed; HDD/object = scale and cost efficiency.
- Negotiate procurement terms: Fixed windows, staged buys, and trade‑ins reduce volatility risk.
- Plan for PLC: Monitor PLC drive specs for endurance and rebuild behavior before wholesale adoption.
Ready to act?
If you want a tailored capacity plan, we can help map your mailbox profiles to a hybrid on‑prem architecture and provide a 3‑year TCO comparison (CapEx vs OpEx, and cloud hybrid options). Contact our team with your archive metrics and we’ll return a procurement‑ready plan that factors in 2026 NAND market dynamics and vendor SLAs.
Call to action: Request a free archive capacity assessment and procurement playbook to protect your email retention SLAs while controlling costs in the current SSD market.
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