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VentureBeat in Conversation: Handling Greater Demands in the Data Center with Ken Spangler, FedEx

> We have a genealogy of acquisition. And so, every time you acquire a company, it's amazing how many data centers you get.

Show: Beyond the Pilot · Publisher: VentureBeat · Host: Matt Marshall, Sam Witteveen

Episode URL: https://traffic.megaphone.fm/UTEAU3560493034.mp3?updated=1761671595

Publish date: 2025-09-13
Duration: NAs
Default source credibility: HIGH — Named F500 practitioners on-record with production metrics. VentureBeat editorial vetting. Treat vendor-sponsored segments as MEDIUM.

  • FedEx is transitioning to a zero-50-50 strategy, moving away from owned data centers to a mix of colo and cloud, emphasizing security, scalability, and sustainability.
  • FedEx uses a consistent cloud-native stack to manage massive scale and low latency, with a focus on IoT and edge computing to optimize supply chain operations.
  • AI and generative models are integral to optimizing FedEx’s operations, improving delivery date accuracy and customer interface efficiency.

Extracted quotes

# Credibility Speaker Org Timestamp Topic Quote
1 HIGH Ken Spangler (EVP of IT and CIO of Global Operations Technology) FedEx 01:04 02-corporate-tools We have a genealogy of acquisition. And so, every time you acquire a company, it’s amazing how many data centers you get. And so, we’ve taken a really different strategy in recent time, and that is consolidation of data centers. And we went through a period of time that we went to what we call a 40-20 strategy, 40% in our own data centers, 40% in colo data centers, 20% in the cloud as the journey away from our own data centers. And back in 2020, we decided that we’re going to take a very bold strategy, and we’re going to ultimately have a zero 50-50 strategy. So over time, 2025 being the starting point, we’ll really have 0% in FedEx-owned data centers. But again, we will run massive cloud-native FedEx stack in colo data centers.
2 HIGH Ken Spangler (EVP of IT and CIO of Global Operations Technology) FedEx 02:11 02-corporate-tools We have mass scale, just our backbone messaging is more than 100 billion transactions a day. And obviously, we run in 220 countries around the world. And so both between the colo and the cloud side of this, it’s super important for us to drive that. Again, security is number one. But definitely, the scalability, the connectivity, sustainability is so important today.
3 HIGH Ken Spangler (EVP of IT and CIO of Global Operations Technology) FedEx 07:50 01-ai-native-landscape We’ve created a lot of AI models this year that have much more sophistication around our estimated delivery date or actual delivery date. You know, and while it was always very good, we were able to drive up the percent accuracy significantly just this year long. So basically, we’re, large language models and all forms of optimization are skyrocketing all over our business. And I would say it starts with how we interface the customer and how we drive our operations.

Per-quote detail

1. Ken Spangler — FedEx (01:04)

We have a genealogy of acquisition. And so, every time you acquire a company, it’s amazing how many data centers you get. And so, we’ve taken a really different strategy in recent time, and that is consolidation of data centers. And we went through a period of time that we went to what we call a 40-20 strategy, 40% in our own data centers, 40% in colo data centers, 20% in the cloud as the journey away from our own data centers. And back in 2020, we decided that we’re going to take a very bold strategy, and we’re going to ultimately have a zero 50-50 strategy. So over time, 2025 being the starting point, we’ll really have 0% in FedEx-owned data centers. But again, we will run massive cloud-native FedEx stack in colo data centers.

  • Stat: 40% in owned data centers, 40% in colo data centers, 20% in cloud, transitioning to 0% owned data centers by 2025.
  • Credibility: HIGH — Named exec at identifiable org with specific metric and unscripted interview.
  • Topic tag: 02-corporate-tools

2. Ken Spangler — FedEx (02:11)

We have mass scale, just our backbone messaging is more than 100 billion transactions a day. And obviously, we run in 220 countries around the world. And so both between the colo and the cloud side of this, it’s super important for us to drive that. Again, security is number one. But definitely, the scalability, the connectivity, sustainability is so important today.

  • Stat: 100 billion transactions a day.
  • Credibility: HIGH — Named exec with specific metric and unscripted interview.
  • Topic tag: 02-corporate-tools

3. Ken Spangler — FedEx (07:50)

We’ve created a lot of AI models this year that have much more sophistication around our estimated delivery date or actual delivery date. You know, and while it was always very good, we were able to drive up the percent accuracy significantly just this year long. So basically, we’re, large language models and all forms of optimization are skyrocketing all over our business. And I would say it starts with how we interface the customer and how we drive our operations.

  • Stat: Significant increase in delivery date accuracy.
  • Credibility: HIGH — Named exec with specific metric and unscripted interview.
  • Topic tag: 01-ai-native-landscape

Extracted 2026-04-15T01:36:51 via scripts/podcast_mine.py (MLX mlx-community/Qwen2.5-32B-Instruct-4bit).