By: Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press
Essex County Council approved funding for virtualized computing environment replacement, including the additional $457,500 required, from the Rate Stabilization Reserve.
In late 2024, Darrel Laurendeau, Director of Information Technology Services, explained that the system pricing model was to change significantly, with exponential cost increases expected.
The County’s IT Department evaluated alternatives as a result, with the intention of bringing forward a solution as part of the 2025 Budget cycle. The team identified an alternative solution that would allow the County to decouple from the current system, along with an equipment refresh.
The alternative was incorporated into the 2026 Budget submission in the amount of $197,000. In late 2025, the global AI sector announced significant acquisitions, purchasing over 40% of the world’s memory supply chain for the next 18-24 months, Laurendeau explained.
“This triggered immediate and sharp price increases across the memory market,” he said. In January, they reengaged with the vendor to get updated pricing and received a quote over triple the amount budgeted for over the summer.
He added that on January 28th, the County received notification that the manufacturer has notified the distributors that the quotes would be invalid at the end of January and will need to be refreshed the first of February 2026. The quotation would increase by around $120,000.
To mitigate this, he confirmed the budgeted amount of $197,000 from within the existing budget, and secured the final quote of $655,000, pending Council’s approval for the full infrastructure solution, including a one-time five-year license agreement designed to insulate the County from further market volatility.
The County will still realize a net-cost savings of $347,000 over the next five-years, compared to the status quo, he said. Waiting only increases exposure to further price hikes.