Locaweb navigates supply constraints with closer Dell partnership as demand surges
The Brazilian cloud hosting provider is rethinking infrastructure planning in response to hardware shortages and growing customer demand, working more tightly with technology partners to find alternative configurations.
Surging customer demand combined with equipment scarcity is forcing cloud service providers to overhaul how they plan data center capacity. Locaweb Serviços de Internet S/A, which offers cloud hosting and digital services from Brasil, faces mounting pressure to forecast infrastructure needs sooner and identify workarounds when standard hardware proves difficult to obtain.
This challenge is reshaping Locaweb's approach to infrastructure strategy. The company has deepened its collaboration with technology partners, notably Dell Technologies Inc., to evaluate different hardware options and navigate supply difficulties while maintaining service quality, according to Gustavo Gomes Salviano, Locaweb's chief technology officer.
I think that [growing demand] brings the infrastructure challenge again to the board. Now we need to think more quickly and strategically in the infrastructure than we did before.
Gustavo Gomes Salviano, chief technology officer of Locaweb
Salviano and Diego Puerta, Brasil general manager at Dell Technologies Inc., discussed these issues during an exclusive interview with theCUBE's John Furrier as part of the theCUBE + NYSE Wired: AI Factories – Data Centers of the Future series, addressing capacity planning, supply constraints and the engineering partnerships driving Locaweb's expansion.
Data center capacity planning starts earlier
Locaweb's origins lay in hosting and email services for small businesses, but the company has since expanded into e-commerce, marketplace and financial solutions. This diversified service portfolio has expanded the scope of infrastructure the company must support, Salviano explained.
First of all is to anticipate the demands. We anticipate … more than we've done before. But the second thing is … we are working with our engineers and our partners' engineers, like Dell, to think about how can we solve the problem that we're facing.
Gustavo Gomes Salviano
Memory supply ranks among the key variables in these planning conversations, alongside pricing and lead times. Locaweb and Dell have been examining supply obstacles since the previous year, strategizing about securing appropriate equipment configurations in sufficient time to satisfy demand, Salviano noted.
Sometimes we are re-engineering our [infrastructure] needs [to] solve the problem of the time and the length of the time of the delivery, the supply chain. It's challenging us to think about our partners and how we can change that without taking any functionality from our products and from our customers.
Gustavo Gomes Salviano
Connecting infrastructure decisions to business needs
Tackling supply obstacles demands more than simply placing orders sooner. Locaweb must also evaluate substitute configurations capable of fulfilling customer requirements while preserving performance levels. The established partnership between the two companies informs these technical decisions. Dell's deep knowledge of Locaweb's systems enables both organizations to evaluate options based on the performance and capacity demands of Locaweb's services, Salviano stated.
When we talk about our needs, our technical needs, they'll understand our products. They know what runs there.
Gustavo Gomes Salviano
Infrastructure choices are gaining additional significance as Locaweb incorporates artificial intelligence into its operations. The organization is constructing applications that enable non-technical personnel to develop solutions tailored to their specific business requirements. These applications are assisting staff in streamlining operations, with IT departments facilitating the effort, Salviano indicated.
From Dell's perspective, supporting customers in establishing infrastructure for enterprise AI starts with comprehending their strategic objectives, according to Puerta.
It's not an IT transformation; it's a business transformation leveraging IT. It must come from the leadership. IT is the enabler because what AI is doing is amplifying the possibilities.
Diego Puerta, Brasil general manager at Dell Technologies Inc.