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FedEx to close data centers, retire mainframes

datacenterdynamics.com

21–30 of 573 posts

Re: FedEx to close data centers, retire mainframes

#21
post #17

So are the moving to AWS? Are we going to have a complete breakdown of packages delivery next time there is an outage at AWS?

Do you trust FedEx to operate datacenters better than AWS or Microsoft?

I don't even trust FedEx to deliver my packages and that's supposedly their core competence.

Re: FedEx to close data centers, retire mainframes

#22
post #17

So are the moving to AWS? Are we going to have a complete breakdown of packages delivery next time there is an outage at AWS?

Do you trust FedEx to operate datacenters better than AWS or Microsoft?

Not especially, but that hardly matters; what matters is that FedEx's CIO doesn't trust FedEx to operate data centers in a way that is better for FedEx than AWS or Microsoft.

Re: FedEx to close data centers, retire mainframes

#23
Making accurate calculations of data center cost is of course complicated and rarely manages to take everything into account, but the common knowledge I’ve heard is that there comes a point when a company is so large that going on-prem is what actually saves them a lot of money.

If FedEx is not large enough to be one of those companies, how large do you actually have to be? Or has cloud pricing changed to the point where this is no longer true, and even huge corporations can save money in moving away from their own premises?

Re: FedEx to close data centers, retire mainframes

#24

Are they really going to save 400 m$, or was it the figure "promised" by the shop that will handle the migration?

It certainly seems unlikely. Maybe it's the current operational cost, not subtracted the new operational cost. Maybe it's due to already adopting cloud and thus having paying double. Maybe it's due to the use of mainframes, rather than conventional servers.

Either way, it's definitely not the cost difference between on-premise and cloud. Cloud providers are not charities, and their buildings and staff are not cheaper than yours.

Re: FedEx to close data centers, retire mainframes

#26
post #17

So are the moving to AWS? Are we going to have a complete breakdown of packages delivery next time there is an outage at AWS?

Do you trust FedEx to operate datacenters better than AWS or Microsoft?

If AWS is charging a 1000% markup on a bunch of stuff, you don't have to be as good as them to save money doing it yourself

Re: FedEx to close data centers, retire mainframes

#27

Are they really going to save 400 m$, or was it the figure "promised" by the shop that will handle the migration?

It certainly seems unlikely. Maybe it's the current operational cost, not subtracted the new operational cost. Maybe it's due to already adopting cloud and thus having paying double. Maybe it's due to the use of mainframes, rather than conventional servers. Either way, it's definitely not the cost difference between on-premise and cloud. Cloud providers are not charities, and their buildings and staff are not cheaper…

> Either way, it's definitely not the cost difference between on-premise and cloud. Cloud providers are not charities, and their buildings and staff are not cheaper than yours.

Exactly, which is why it’s quite a bit cheaper to not have a building and staff right? The premium you pay for the cloud provider having them must be less than having them yourself, or nobody would ever move to a cloud provider.

Re: FedEx to close data centers, retire mainframes

#28
post #14

Is there any gain here aside from cost saving? Will this saving be passed on to the customer? ( laughs ). What happens when the inevitable AWS outage then causes a global shipping bottleneck? Have we still not learnt that having sovereignty is better than saving money? Has COVID taught us nothing? sigh

Fedex will continue to charge as much as they can to boost their profits. This move will increase their profits, making $1.50 on each of 100 million deliveries instead of $1, boosting profits from $100m to $150m However if they were to undercut UPS and others they might be able snap up UPS business, dropping the profit to $1, but on 200 million deliveries, and thus they'll make $200m instead, you the customer will ha…

Until it becomes a race to the bottom and UPS drop their prices as well. Then both companies suffer
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