AI Is Driving Software Workflows Toward Higher Memory and Data Storage Demand

Overview

This is a weekly Morgan Stanley research report on the European software and services sector, with a core focus on AI's impact on memory, data storage, software development processes, and academic publishing workflows. Using cases such as Micron, Informa, SAP, Springer Nature, RELX, and Wolters Kluwer, the report argues that AI's impact is not limited to computing power and model layers, but is also reshaping enterprise software development, research publishing workflows, and the commercial value of offline B2B events.

Core views

The report's core view is that agentic AI is shifting workloads from one-off prompts and chat responses toward end-to-end processes that can plan, call tools, read documents, retain history, and iterate continuously, making demand for memory and retrievable context potentially more structural. At the same time, AI's impact on the software and services sector is differentiated: memory and data storage are clear beneficiaries; Informa's offline B2B events have differentiated value; enterprise software companies such as SAP face a reshaping of development roles; and academic publishers may use AI tools to improve process efficiency and drive incremental margin expansion.

Analysis framework

The report uses an industry weekly and event-driven analysis approach, combining company results, management commentary, internal research summaries, sum-of-the-parts valuation, and industry disclosures to compare horizontally how the AI theme is transmitted across different software and services sub-sectors.

Methodology notes

• Industry ViewRelative Industry Rating

  In-Line

  Morgan Stanley sets its view on the European software and services sector at In-Line, meaning it expects the sector to perform broadly in line with the relevant broad market benchmark over the next 12-18 months.

• Demand TransmissionAgentic AI Workload Analysis

  Context, Memory, and Tool Use Drive Storage Demand

  The report views the shift in AI from chat-based interaction to persistent workflows as a key mechanism behind rising memory demand, because such systems need to preserve, retrieve, and iterate on more context.

• Valuation AnalysisSOTP Sum-of-the-Parts Valuation

  Assessing Informa's Fair Value by Business Segment

  The report uses segment valuation, comparable transactions, and cross-industry valuation benchmarks to evaluate Informa, arguing that Live B2B Events deserve a higher valuation multiple.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Micron

  AI data centers and agentic AI workloads are driving demand for memory and data storage.

  Strengths

  3Q26 revenue significantly exceeded expectations, supported by both AI demand and rising memory prices, and the company has already signed 16 long-term strategic customer agreements.

  Weaknesses

  The memory industry has historically been cyclical, and the market is still debating whether this round of demand is truly structural.

  Comparison

  Compared with traditional one-off AI queries, agentic AI requires more persistent context retention and retrieval, creating stronger storage demand.

  Risks

  If AI data center buildout slows, memory prices fall, or execution of long-term customer agreements disappoints, the sustainability of demand could be questioned.

• Informa

  B2B live events provide a differentiated platform for human connection in a digital outreach environment saturated by AI.

  Strengths

  Scale and industry leadership support long-term revenue growth; sum-of-the-parts valuation suggests fair value is more than 20% above current levels.

  Weaknesses

  Some 2026 event revenue shifted between the first and second halves, which may make 1H year-over-year performance appear weaker.

  Comparison

  The report compares Live B2B Events with valuation benchmarks in industries such as business services, luxury goods, and capital goods.

  Risks

  If consensus expectations do not adjust to the revenue timing shift in time, short-term earnings interpretation may come under pressure; valuation re-rating depends on sustained quality growth in the events business.

• SAP SE

  AI coding tools and agents may reshape enterprise software development workflows and talent structures.

  Strengths

  Management is proactively discussing AI talent and organizational redesign, emphasizing high-quality AI talent and more efficient development models.

  Weaknesses

  Demand for traditional software development roles may decline, and organizational transformation requires reallocation of product managers, data scientists, and compensation structures.

  Comparison

  SAP's view is consistent with the high-quality AI talent hiring philosophy presented at Sapphire 2026.

  Risks

  If productivity gains from AI development tools fall short of expectations, or competition for talent pushes up costs, the benefits of organizational transformation may be weakened.

• Springer Nature / RELX / Informa / Wolters Kluwer

  AI tools can improve efficiency in academic publishing, peer review, journal matching, and research workflows.

  Strengths

  AI can shorten publishing processes that average about 200 days, or around 300 days for the Nature brand, while improving the experience of authors, reviewers, and editors.

  Weaknesses

  Academic publishers already have relatively high margins, so the allocation of incremental economics and pricing of tools still need to be balanced.

  Comparison

  Springer Nature is the second-largest participant in academic publishing, behind RELX's Elsevier and larger than players such as Informa's Taylor & Francis.

  Risks

  The commercialization potential of research support tools such as Nature Research Assistant or RELX LeapSpace remains uncertain.

Key data

• Report Date2026-06-28The front page of the report shows the publication time as June 28, 2026 03:00 PM GMT.
• Industry ViewIn-LineThe report cover lists the European software and services sector view as In-Line.
• Micron 3Q26 Revenue$41 billion, up nearly 350% year over yearRevenue rose from about $9bn to $41bn, which the report attributes to AI demand and higher memory prices.
• Micron Long-Term Customer Agreements16The report says Micron has signed 16 long-term strategic customer agreements, cited as one piece of evidence for structurally stronger memory demand.
• Informa Fair Value Assessment>20% above current levelsMorgan Stanley's new sum-of-the-parts valuation analysis reinforces its view of Informa's fair value.
• Informa Valuation MultipleLive B2B Events FY26 EV/EBIT in the high teens; around 16x overallThe report argues that Live B2B Events should command a high-teens FY26 EV/EBIT multiple within the group portfolio, while Informa overall is around 16x at the target price.
• Informa Growth AssumptionsRevenue about 6%, EPS about 12%, dividend yield >2.5% p.a.The report describes its medium-term expectations for Informa's growth and shareholder returns.
• Informa Revenue Timing Shift>$175mPart of event revenue in 2026 shifted from the first half to the second half, which may make 1H year-over-year performance appear weaker.
• Springer Nature Publishing CycleAverage about 200 days; around 300 days for Nature-branded journalsThe report believes AI tools can help reduce friction in academic publishing workflows.
• Researcher AI Usage RateAbout 75% have used it; about one-third are willing to payBased on comments from Springer Nature management at an investor technology event.

Impact & implications

From an investment perspective, the AI theme is expanding from chips and models into the broader software and services ecosystem. Memory and data storage may benefit from more persistent and complex AI workflows; enterprise software companies need to reshape R&D and talent structures; academic publishers have an opportunity to use AI to reduce process bottlenecks and improve user experience; and offline B2B events may hold stronger strategic value because of the scarcity of real human connection.

Risks

• Although memory demand is being driven by AI, industry cyclicality may still cause fluctuations in pricing and profitability.
• Informa's 2026 event scheduling changes may make first-half year-over-year figures appear weak, affecting the market's short-term interpretation.
• The shift by enterprise software companies toward AI-driven development may bring risks related to talent structure, compensation, and organizational adjustment.
• It remains uncertain whether AI tools in academic publishing can be monetized effectively, and balance must be maintained among high margins, user experience, and the industry ecosystem.
• Morgan Stanley discloses that it has or may have investment banking relationships, equity holdings, market-making activities, or other commercial relationships with several covered companies, and investors should be aware of potential conflicts of interest.

What to watch

• Micron's subsequent memory pricing, AI data center orders, and delivery on its 16 long-term customer agreements.
• Whether agentic AI continues to increase demand for context storage, document reading, session history, and multi-agent workflows.
• The impact of Informa's 1H26 and 2H26 revenue scheduling changes on consensus expectations and valuation re-rating.
• SAP's execution progress in AI coding, product manager capabilities, data scientist hiring, and its 3-to-1 high-quality talent strategy.
• The usage, willingness to pay, and commercialization paths of AI workflow tools at Springer Nature, RELX, Informa, and Wolters Kluwer.