• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Data centers

Why Amazon Is Dead Wrong About Your Data Centers

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
June 21, 2016, 7:38 PM ET
SnapRoute

For years now, we’ve heard Amazon Web Services partisans saying that most, if not all, corporate software will eventually run in a public cloud (Amazon’s public cloud.)

They argue that’s because it’s A): cheaper B): more secure and C): frees up internal engineers to do more valuable work like write better software to run on AWS. Google’s (GOOG) enterprise chief Diane Greene recently made similar arguments. Microsoft (MSFT), the third major public cloud player, is less strident about everything-moving-to-public-cloud since many of its customers also run Microsoft software in their internal data centers.

Jason Forrester begs to differ with Amazon’s take. Forrester, formerly global data center network manager at Apple (AAPL) who also spent more than 10 years at IBM (IBM), says reports of the death of corporate data centers are not just exaggerated—they are flat-out wrong.

Will Amazon Get Into the Business Software Game?

Forrester and much of his infrastructure team left Apple last year to create SnapRoute to prove it. This Palo Alto, Calif.-based startup aims to bring the same sort of networking flexibility that public clouds claim to corporate data centers running important business applications. Facebook described some of SnapRoute’s work in a blog post, but this is the first time Forrester has spoken publicly about SnapRoute’s plans.

In Forrester’s view, it makes sense to rely on public clouds for what he calls the “easy stuff”—email, web apps, and other applications that are not time sensitive. But the real differentiating, strategic applications like Apple’s virtual assistant Siri, Apple TV, Uber’s mapping service that tells your driver where you are and vice versa run on internally owned and operated data centers. And he thinks they will continue to do so, despite the best efforts of public cloud purveyors to convince us otherwise.

“Most enterprise applications are highly customized for the company’s needs, which means they don’t fit neatly into the public cloud mold,” he noted. That’s why most companies’ big accounting and inventory tracking systems aren’t on a public cloud, he said. When it comes to their money-maker software, companies need “complete command and control of their infrastructure,” he noted, adding dryly that “It’s hard to have that command and control if you can’t even tour your public cloud data center.”

Amazon (AMZN) does not let corporate customers visit its data center

Forrester’s view is very controversial in this day and age, where even big security-obsessed banks are starting to talk openly about using public cloud. But if you really scratch the surface, hardly anyone says they’re offloading everything to a public cloud.

Get Data Sheet, Fortune’s technology newsletter.

One reason that companies feel better about keeping applications in-house is that the cost of the no-name server, storage, and networking hardware is much less than the old brand-name products that companies used to buy from HP (HPE), IBM (IBM), Cisco (CSCO), and EMC (EMC). That’s largely due to the Facebook (FB)-backed Open Compute Project, which helped design specifications for data center hardware that anyone can use.

“All of this commodity hardware was once reserved for the big guys but has trickled down to everyone else,” Forrester said.

After they’re on cheaper hardware, they need software that will let them reprogram and configure that hardware as needed, on the fly. SnapRoute is attacking that problem on the networking side with software called FlexSwitch, the technology that it will contribute to the Open Compute Project for others to use.

Nicira, now part of VMware, (VMW) was early entrant in this space, typically called software-defined networking. But Nicira was all about managing old-school hardware from many vendors while SnapRoute aims to manage all that inexpensive, unbranded network gear that companies are buying now.f

Public cloud advocates often joke that traditional tech execs are “server huggers” because they just can’t let go. “I’ve tried hugging a lot of servers and believe me, they don’t hug you back,” AWS chief technology officer Werner Vogels has quipped.

Maybe not, but SnapRoute’s take is that there are serious reasons companies will need to hold onto their servers—and their own data centers—for a long, long time.

 

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

A smartphone displaying the Google Gemini logo.
AIEye on AI
As ‘agentic commerce’ gains ground, companies shouldn’t put too much faith in ‘GEO,’ one industry insider warns
By Jeremy KahnJanuary 13, 2026
16 hours ago
BankingDebt
Why the $38 trillion national debt doomed Fed independence regardless of the Trump/Powell drama, top economist says
By Eva RoytburgJanuary 13, 2026
16 hours ago
bastian
Economyearnings
Delta sees wealthy high fliers leading to another record year—but its CEO sees the main cabin ‘struggling greatly’
By Nick LichtenbergJanuary 13, 2026
16 hours ago
The Synchrony Bank Logo on a green layered background.
Personal FinanceCertificates of Deposit (CDs)
Synchrony Bank CD Rates 2026
By Joseph HostetlerJanuary 13, 2026
17 hours ago
adams
PoliticsObituary
Scott Adams, Dilbert creator who went from cubicle wars to culture wars, posts open letter to time with his death at 68
By Nick LichtenbergJanuary 13, 2026
17 hours ago
AIChatbots
Being mean to ChatGPT can boost its accuracy, but scientists warn you may regret it
By Marco Quiroz-GutierrezJanuary 13, 2026
17 hours ago

Most Popular

placeholder alt text
Newsletters
The oil CEO who stood up to Trump is a follower of the disciplined 'Exxon way' and has a history of blunt statements
By Jordan BlumJanuary 13, 2026
1 day ago
placeholder alt text
Tech
Elon Musk asked people to upload their medical data to X so his AI company could learn to interpret MRIs and CT scans
By Sasha RogelbergJanuary 11, 2026
3 days ago
placeholder alt text
Economy
Treasury spent $276 billion in interest on the national debt in the final three months of 2025, says the CBO—up $30 billion from a year prior
By Eleanor PringleJanuary 12, 2026
2 days ago
placeholder alt text
Economy
The longer the Supreme Court delays its tariff decision, the better it is for President Trump
By Jim EdwardsJanuary 13, 2026
1 day ago
placeholder alt text
Success
Despite his $2.6 billion net worth, MrBeast says he’s having to borrow cash and doesn’t even have enough money in his bank account to buy McDonald’s
By Emma BurleighJanuary 13, 2026
19 hours ago
placeholder alt text
AI
'Godfather of AI' says the technology will create massive unemployment and send profits soaring — 'that is the capitalist system'
By Jason MaJanuary 12, 2026
2 days ago

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.