Well, I didn't really meant data centers, just in general on premise infrastructure. There is a difference of course. Our administration is almost completely in the cloud, but for production and some adapted applications we still need local data. There is simply no technical solution to run everything in the cloud and we also want to retain some data locally. VMWare is an example. UPS and backups are another. Sure, we use service providers for provisioning of new VMs but IT still needs to do maintenance of the software that runs on it, needs to keep inventory about the servers running in the company. And if you have one VM running additional provisioning is not too much work.

But sure, at the scale of FedEx this is true, they also probably have a very high percentage of administration only. Although I still think the cooperation with MS was still a strategically planned after paying attention to Amazon.