FedEx will close all data centers and transition to the cloud within two years

What just happened? FedEx is going all in on cloud computing, a move that will save the Memphis, Tennessee-based transportation company an estimated $400 million annually. During FedEx’s recent investor day, CIO Robert Carter said they’ve been working across this decade to streamline and simplify their technology and systems by moving to the cloud and eliminating monolithic applications.

“We’re moving to a zero data center, zero mainframe environment that’s more flexible, secure, and cost-effective,” Carter said.

The executive added that FedEx plans to close its last remaining data centers, eliminate the final 20 percent of its mainframe footprint and move its remaining applications to cloud-native structures within the next two years.

Oracle and Microsoft, which FedEx already relies on for its existing cloud operations, would no doubt welcome additional business with open arms.

What we don’t know at this time is exactly how many facilities and jobs will be impacted by the change. According to data center tracking site Baxtel, FedEx only operates a single data center in Colorado Springs. That facility was completed in 2008, with a 26,000 square feet expansion added in 2011.

In 2019, FedEx signed a 10-year agreement with Switch to serve as its western US data center provider. Switch at the time said it would deliver 2.5 MW of 100 percent green power in year one, and up to 8 MW by year 10.

FedEx founder and longtime CEO Fred Smith recently transitioned to the role of executive chairman. President and COO Raj Subramaniam took over as CEO on June 1, 2022.

Image credit: Bannon Morrissy, Lars Kienle

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