Live data from Hacker News

FedEx to close data centers, retire mainframes

datacenterdynamics.com

191–200 of 573 posts

Re: FedEx to close data centers, retire mainframes

#191

Its weird to have companies say they're moving from Mainframes to the Cloud. The Mainframe is a sort of cloud, each one has usually double the spare capacity and you call IBM to unlock it. The cost of running a Mainframe is measured in terms of MIPS based on amount of compute used and there's compute reserved for offloading things like JITs (zAAPS). Essentially a version of cloud compute costs. I can understand if yo…

Mainframe = locked in to IBM, is probably the logic.

Re: FedEx to close data centers, retire mainframes

#192

How did Dropbox end up saving tens of millions bt making their own cloud infrastructure but FedEx loses money? Surely FedEx would have a metric shit ton of data?

Ask yourself what probably happened a few years later when they had to negotiate new leases from their datacenter landlords. Funny how they never put out a follow up press release about the enduring value of on-prem. Also a company that basically can’t grow and hardly turns a profit.

Really, not the first example I’d reach for.

Re: FedEx to close data centers, retire mainframes

#193

Earlier quoted context omitted.

I used to work with a very smart man that I'm sure was some kind of secret genius. He's was that sort of tech gofer. Hardware, software, didn't matter, if there was a problem he'd solve it. Sort of guy you'd see carrying a thick ass SQL book around because he 'needed to learn it' to solve just one little problem. He built whole entire solutions for the company I worked at in his spare time that the company once tried…

> "Change gives the illusion of progress". That itself is based on the belief that (historical) progress is an improvement. Mostly true over the last few centuries - aspirin is nice - except for those occasions where it was mass murder.

First "pain mixing machines," and now "asp(i)rin is nice."

Re: FedEx to close data centers, retire mainframes

#194
post #176

Earlier quoted context omitted.

> that information infrastructure runs your company This is silly. There is a lot more to FedEx than hosting physical compute infrastructure. FedEx doesn’t own all its own airports. A CSP is just another vendor.

At almost every airport that FedEx has an operation at, there is another airport within 100 miles that could be used instead, managed by a different company. The barrier to changing is not controlled by the airports. That's a competitive environment. How many major cloud providers exist, and what could they do to make it difficult for FedEx to leaving for another one?

>How many major cloud providers exist

Plenty! AWS is HUGE but hardly a monopoly.

>what could they do to make it difficult for FedEx to leaving for another one

If the guys running this at FedEx are smart, not much. There are ways to deploy all of this in a platform-agnostic way.

Re: FedEx to close data centers, retire mainframes

#196
post #36

Earlier quoted context omitted.

Without a doubt, a future generation of executives will revisit and reverse the decision to rent all information infrastructure, but that will likely be many, many years down the road. In the meantime, the current generation of executives who made this decision will look very smart for saving the company lots of money for a good number of years. And they stand to benefit personally from it. They're doing the rational…

I think you are absolutely right, however when they do reverse the decision they will publish a great article about how bringing their datacentres in-house is going to save them $800m a year and a bunch of execs will grant themselves a bigger bonus for saving the company so much money. It's a win-win!

It's quite possible that at today's prices, they will save $400M/yr, and in the future, as cloud vendors raise prices, bringing it in-house will save them $800M/yr.

Re: FedEx to close data centers, retire mainframes

#197
post #36

Earlier quoted context omitted.

Without a doubt, a future generation of executives will revisit and reverse the decision to rent all information infrastructure, but that will likely be many, many years down the road. In the meantime, the current generation of executives who made this decision will look very smart for saving the company lots of money for a good number of years. And they stand to benefit personally from it. They're doing the rational…

I used to work with a very smart man that I'm sure was some kind of secret genius. He's was that sort of tech gofer. Hardware, software, didn't matter, if there was a problem he'd solve it. Sort of guy you'd see carrying a thick ass SQL book around because he 'needed to learn it' to solve just one little problem. He built whole entire solutions for the company I worked at in his spare time that the company once tried…

> "Change gives the illusion of progress". I asked him what he meant and he responded with something to the effect of "They have the habit of changing big things every 5-10 years on purpose to make it look like they are productive, and to justify their own roles, one guy will come in and 'cut costs', the new guy after him will 'invest'".

That's a very succinct way to put it. I think that observation also applies to consumer technology (e.g. regularly re-doing UIs to "improve" them when the changes are either in fact regressions or just different but not better). We've had it drilled in our heads throughout the modern era that new == better (e.g. the ubiquitous "new and improved!" marketing language), but that's not actually always true. Change for change's sake justifies itself through that misunderstanding.

In the recent past, we had a really high rate of genuine technological progress. But at some point we'll have picked most of low hanging fruit and will enter a period of slower progress, where faking progress will become more an more tempting for producers than the real thing.

Re: FedEx to close data centers, retire mainframes

#198
post #19

Ultimately companies that abdicate their informatics operations like this will give their profits to their data-center operators, who will be empowered to charge them whatever price they want. Because what's their BATNA? Migrating from Azure to AWS when Microsoft doesn't want to let them? Renting your information infrastructure is a great way to reduce startup costs, but down the road, that information infrastructure…

That’s an incredibly silly take. Our whole economy is based on specialization. FedEx will never be as good at running datacenter as Amazon or Google. There’s room in the system for the cloud operator to earn a profit while still offering the product at a lower cost than anyone else can achieve in-house.

Apple fairly notoriously hosts iCloud in other company’s clouds, and they’re a computer hardware and software company! If you’re less sophisticated than Apple, it’s a no-brainer to go with clouds.

Re: FedEx to close data centers, retire mainframes

#199
post #19

Ultimately companies that abdicate their informatics operations like this will give their profits to their data-center operators, who will be empowered to charge them whatever price they want. Because what's their BATNA? Migrating from Azure to AWS when Microsoft doesn't want to let them? Renting your information infrastructure is a great way to reduce startup costs, but down the road, that information infrastructure…

Absolutely, companies outsourcing their data infrastructure to the big 3 will end up having "supply chain" and Intellectual Property issues with their data in the same way companies that outsourced too much of their supply chain top SE Asia / China did.

But by the time this becomes a problem the executive team will have cash out nice bonuses from the short term gains from cost savings...

Re: FedEx to close data centers, retire mainframes

#200
post #124

Earlier quoted context omitted.

I agree, isn't it way easier to switch vendors when running on the cloud? I'd say that encourages competition, since we can literally move the infrastructure using keystrokes instead of muscles. This makes me think computer infra could potentially become a commodity.

As always, it depends on how you use it. Most cloud providers do let you run your own software on a managed substrate of infrastructure. But they also let you, nay, encourage you to build on top of their abstractions instead.

I guess you can waste a lot of effort and money on meticulously substituting "batteries included" lock-in features of your cloud provider when the easy path would in fact have been much cheaper (substitute when needed, not prematurely), just as much as you can fall victim to lock-in traps that would have been super cheap and easy to avoid. I imagine that telling one from the other is a form of art in its own right.
Post reply on HN