Hello!
This output is most likely normal and is not indicative of an issue.
As you can see from the output you provided, there is a total of 4,031,392,000 bytes of memory on this switch (~4GB), and 3,361,268,000 bytes of memory (~3.3GB) are in use. That's roughly 83.4% memory utilization. If you reference the Nexus 3000 Average Memory Utilization document, we can see that a Nexus 3548 running NX-OS 7.0(3)I2(2a) (very early in the NX-OS 7.x train of software, whereas you're running 7.0(3)I7(5a) which is relatively late in the NX-OS 7.x train of software) has a memory utilization of 79% per the output of the show system resources module all command.
switch# show system resources module all
CPU Resources:
----------------------------------------------------------
CPU utilization: Module 5 seconds 1 minute 5 minutes
-----------------------------------------------------------
1 6 8 8
-----------------------------------------------------------
Processor memory: Module Total(KB) Free(KB) % Used
-----------------------------------------------------------
1 3903900 795600 79
This output was taken from a switch in the lab with blank configuration, so output from your switch (which is likely in a production environment with non-default configurations, running multiple control plane protocols across multiple interfaces) only has slightly higher memory utilization compared to the lab switch's output.
Just to reiterate, this amount of memory utilization on Nexus 3524/3548 switches running an NX-OS software release in the 7.x, 9.2(x), or 9.3(x) trains of software is normal, so the "Severe Alert" memory status in the output of the show system resources command can be safely disregarded.
I hope this helps - thank you!
-Christopher
