FedEx CIO Rob Carter stated that the company will shut down the last 20% of its mainframes over the next two years. The move, which is part of FedEx’s digital transformation, means that the company will now use its cloud-native architecture to operate the business.
Carter pointed out that the move to a zero data center and zero mainframe environment will save the company US$400 million annually.
Other digital transformations the company is working on include optimizing data insights that will help the company tap new revenue streams, investing in AI and automation, and leveraging the company’s cloud architecture to unlock siloed data and provide more visibility internally and externally.
FedEx will also invest US$2 billion in the new initiatives and expects a return of US$2 billion per year as a result of increased efficiency.
“Inventory placement optimization is a critical example of what happens when you share this kind of data, and harnessing their data help us to continuously tune our network. This is the network effect that we’re achieving through the power of big data,” Carter said.
The sources for this piece include an article in CIODIVE.