All tech companies have huge warehouses full of servers to offer their services. These servers are special computers with specific characteristics. We can get an idea that these teams have a high cost, speaking of billions of dollars.
Google will take longer to update its servers
Currently, the policy of Google establishes that the waiters with updated every 3-4 years. This upgrade can result in at least a doubling of computing power and increased efficiency. But, due to the increase in the price of equipment and transport, they felt that the best was Extend the life cycle of your servers.
The company carried out an exhaustive analysis of the costs and benefits of this measure. In January, it was concluded that extending the life of the servers meant more savings than upgrading them to more powerful and efficient servers. Google NOW will use their servers for 6 yearsextending their useful life by 2 years.
According to estimates, this “simple” measure will cost Google savings of $3.4 billion. A huge saving that comes on top of many other cost reductions achieved by the company.
It looks like it’s not the only tech company to make this move recently. Microsoft, Amazon and Facebook (Meta) also had 3-4 year cycles to upgrade their servers. Although it has not been said which terms they extended to, it is known that the original term has been changed.
Those who will take the hit are AMD, Intel and NVIDIA, the major server manufacturers and distributors. It will also affect companies specializing in server assembly, such as HP Enterprise. Even manufacturers of hard drives, power supplies or RAM memory, among others.
After the pandemic, everything got worse
During the COVID-19 pandemic, a big shift in paradigm and needs has taken place. We’ve all been locked up at home for months and a lot has changed. Above all, there has been a sudden demand for desktop and laptop computers for teleworking and distance learning.
Today, the situation is back to normal, with demand for hardware falling sharply. The use of social networks has also decreased, as people go out more and use them less.
Tensions between the United States and China have increased in recent years, which also affects costs. Another issue affecting the socio-economic landscape is Russia’s invasion of Ukraine. There have been huge increases in the price of freight transport, even before the pandemic.
All of these and other factors are causing very difficult times for big tech. Not to mention the extravagances of supposed geniuses who come to fix another company’s problems and end up creating chaos and a meaningless payment model.
