All technology 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 servers HE 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 price of hardware and transport, they have estimated that the best is Extend the life cycle of your servers.
The company has 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 ones. Google now will use their servers for 6 yearsextending their use time by 2 years.
According to estimates, this “simple” measure will cost Google a savings of 3.4 billion dollars. A huge savings that adds to many other cost cuts made by the company.
It seems that it is not the only technology company that has made this decision recently. Microsoft, Amazon and Facebook (Meta) also had 3-4 year cycles to update their servers. Although it has not been said to what terms they have extended, it is known that the original term has been modified.
Those who are going to take the blow are AMD, Intel and NVIDIA, the main manufacturers and distributors of servers. It will also affect companies specialized in mounting servers, such as HP Enterprise. Even manufacturers of hard drives, power supplies or RAM memory, among others.
After the pandemic, everything has gotten worse
During the COVID-19 pandemic, a great paradigm shift and needs took place. We all stayed cooped up at home for months and a lot of things changed. Above all, we saw a brutal demand for desktop and laptop computers for teleworking and distance training.
Now the situation has returned to normal, with the demand for computer equipment falling sharply. The use of social networks has also fallen, as people go out more and use them less.
Tensions between the United States and China have grown in recent years, something that also affects costs. Russia’s invasion of Ukraine is another problem that is affecting the socio-economic landscape. There have been huge increases in the price of freight transport, even before the pandemic this rise.
All of these factors, plus others, are causing very difficult times for big tech. Not counting the extravagances of supposed geniuses who come to correct the problems of some other company and end up creating chaos and a meaningless payment model.