Some of the world's largest cloud computing firms, including Alphabet, Amazon, and Cloudflare, have found a way to save billions by extending the lifespan of their servers - a move expected to significantly reduce depreciation costs, increase net income, and contribute to their bottom lines.
Alphabet, Google's parent company, started this trend in 2021 by extending the lifespan of its servers and networking equipment. By 2023, the company decided that both types of hardware could last six years before needing to be replaced. This decision led to the company saving $3.9 billion in depreciation and increasing net income by $3.0 billion last year.
These savings will go towards Alphabet's investment in technical infrastructure, particularly servers and data centers, to support the exponential growth of AI-powered services.
Like Alphabet, Amazon also recently completed a "useful life study" for its servers, deciding to extend their working life from five to six years. This change is predicted to contribute $900 million to net income in Q1 of 2024 alone.
Cloudflare followed a similar path, extending the useful life of its service and network equipment from four to five years starting in 2024. This decision is expected to result in a modest impact of $20 million.
Tech behemoths are facing increasing costs from investing in AI and technical infrastructure, so any savings that can made elsewhere are vital. The move to extend the life of servers isn't just a cost cutting exercise however, it also reflects the continuous advancements in hardware technology and improvements in data center designs.
- Open source cloud computing slow to catch on, survey finds [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Oracle CFO: no acquisitions needed to compete in cloud [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- IDC Survey: U.S. Corporations Aim to Tackle IT Challenges with Cloud Computing [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Where does the ICO's new cloud guidance take you? [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- ChinaSoft International Signs Strategic Cooperation Agreement with Alibaba Cloud Computing to Develop PaaS Platform [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- IT Leaders Forum: Shedding light on cloud computing [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Oracle Public Cloud Computing [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Oracle Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing 101 - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Lenovo Gets Into Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing Certification Training | Cloud Computing Training By Simplilearn - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Succeeding or Failing with Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Demystifying the Cloud - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- N: Cloud Computing, Syria PM Defects, US to Clean Agent Orange and MORE! - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing - Tv9 - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- AWS 101 Cloud Computing Seminar-Bangalore - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Trust - The Key to Cloud Computing Growth in Europe [Last Updated On: October 6th, 2012] [Originally Added On: October 6th, 2012]
- Cloud Computing Saves Health Care Industry Time And Money [Last Updated On: October 6th, 2012] [Originally Added On: October 6th, 2012]
- Synnex CEO Kevin Murai: Tablets, Mobile, Cloud Computing (p3) - Video [Last Updated On: October 6th, 2012] [Originally Added On: October 6th, 2012]
- Enterprise computing IS the cloud [Last Updated On: October 8th, 2012] [Originally Added On: October 8th, 2012]
- 44 Percent Of US Execs To Tackle IT Challenges Through Cloud [Last Updated On: October 8th, 2012] [Originally Added On: October 8th, 2012]
- ZapThink Announces Expansion of Cloud Computing for Architects Course [Last Updated On: October 9th, 2012] [Originally Added On: October 9th, 2012]
- Euro Zone Eyes Cloud Computing to Kick Start Economy [Last Updated On: October 9th, 2012] [Originally Added On: October 9th, 2012]
- Advantages, challenges of cloud computing discussed Oct. 10 at NJIT [Last Updated On: October 10th, 2012] [Originally Added On: October 10th, 2012]
- Dell Expands Cloud Client Computing Solutions for VMware View®, Desktop as a Service and Channel Offerings to Europe [Last Updated On: October 10th, 2012] [Originally Added On: October 10th, 2012]
- Cloud West to Focus on Entertainment Delivery, Network Infrastructure, and Investment, More at Nov. 8-9th Forum [Last Updated On: October 10th, 2012] [Originally Added On: October 10th, 2012]
- IBM, AT&T Offer Secure Passage to the Cloud [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Cloud computing company hits new fundraising heights [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Cloud computing firm hits new fundraising heights [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Cloud computing: here we go again [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Chinese Want to Put Computer 'Brains' in the Cloud [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- CenturyLink Unveils Cloud Product [Last Updated On: October 12th, 2012] [Originally Added On: October 12th, 2012]
- Cloud Security Evolves in Wellington [Last Updated On: October 14th, 2012] [Originally Added On: October 14th, 2012]
- 2X ApplicationServer XG Joins the Intel AppUp SMB Service Hybrid Cloud [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- Piston Cloud to Exhibit and Present at the 2012 OpenStack Summit in San Diego [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- How to get your first cloud computing job [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- DreamHost Adds Public Cloud Computing Service: DreamCompute [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- Aryaka Receives 2012 Cloud Computing Excellence Award [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Making a Europe fit for the cloud [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Cisco Execs Plumb The Limits Of Cloud Computing [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Cloud firm invests in new network [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- AirWatch Receives 2012 Cloud Computing Excellence Award [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Dell Extends Cloud Client Computing Portfolio with New Solutions Validated by Citrix [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Pano Logic and Alliance InfoSystems Join Forces to Deliver Zero Client Computing [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- 5 Cloud Business Benefits [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Alteva Receives 2012 Cloud Computing Excellence Award [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Open Text profit beats estimates on cloud services [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud computing improves nurse call system [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud computing: Top five tax considerations for your business [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- OKI and ISID to Provide Chemical Information System as Cloud Computing Services [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- As Mobile Grows, So Does Cloud Computing [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- IBM Analytical Decision Management SaaS - IBM Cloud TechTalk October 2012 - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- JAX London 2012: Achieving genuine elastic multitenancy with Waratek Cloud VM for Java - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Microsoft 2020 technology future vision - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Infinity Cloud Point of Sale and Complete Retail Suite.mp4 - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Small Business IT Support, Computer Support, Web Design Atlanta - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing - Simplified - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- How Allied Valve Used the Cloud to Expand in Bakken Oilfield - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing in the Public Sector - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing | Sacramento | Data Protection | IT Consulting | Symmetry Managed Servces - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- The Business Value of Cloud Computing - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- GYMNAZO Owner/Coach Michael Hughes is excited about edufii - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Automation in the age of cloud computing - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing.mp4 - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud computing in 2013: a conversation with Appcore's CEO [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Cloud adoption growing in India: study [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Eastday-Microsoft picks city for cloud computing [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Towards a blue sky: How SMEs can avoid Cloud Computing confusion [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Consultancy Services - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Axxis Solutions Sponsors FIBA Technical Seminar on Cloud Computing - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- RightScale Webinar: 451 Research Webinar: Cloud Dos and Don'ts - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Apple Technology (Vishwa Bandhu Gupta) - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Mind Tree Ltd. - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- BIM Cloud Computing [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Entreda discusses cloud services for small and medium businesses - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Austin IT Company | Computer Networking [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Cloud Computing and Services - After Effects Template - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- FieldStorm App Tour - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- The Hon Brendan O'Connor's speech: AccountRight Live launch event - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]