Cloud & Infrastructure · Infrastructure Strategy · Hard · 35-45 min

Logistics Firm Spending $20M/yr on Data Centers

Last updated 2026-07-29

What is this case about?

A logistics company spends $20M a year running on-prem data centers that host its warehouse, routing, and tracking systems — latency-sensitive workloads tied to physical operations. A hardware refresh worth $35M is due in 18 months. The CEO wants to know whether to refresh, exit to cloud, or go hybrid, and how to sequence a move without disrupting 24/7 operations.

Where strong candidates start

  • Clarify the forcing function — the $35M refresh deadline — and what 'do nothing' actually costs
  • Classify workloads by latency and criticality — which can tolerate cloud, which must stay near the edge / on-prem

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