Benefits of consolidating data centers
Oracle co-chief executive Mark Hurd has said he expects 80% of corporate data centers to disappear by 2025.Even if he’s a little bit off, that’s a considerable estimate. A company like Box—founded in 2005, a year before AWS launched its first cloud service—didn’t have much of a choice but to provision its own data centers.And then there is Dropbox, the popular file storage and file sharing company that ran almost entirely on AWS until it quietly moved 90% of that workload into its own data centers over the course of a few years.
SAP offers versions of many of its products—like Success Factors human resources and Concur travel and expense accounting software—from various cloud partners.A public cloud—referred to within the industry as Infrastructure-as-a-Service (Iaa S)—consists of massive quantities of servers, storage, and networking owned-and-operated by one company, and then rented out to others.Box and Workday, for example, are turning to AWS and IBM (ibm) Soft Layer to run specific types of software.Their argument is that once a company’s workload gets big enough and stable enough not to need all that public cloud flexibility, it is cheaper to run your own data center gear.
Still, it seems that if the public cloud is a viable option, more corporate workloads will flow in that direction.Salesforce has signed on to AWS for its Internet of Things Cloud Suite and other new products.