Enterprise

Facebook Saved 'Over $1 Billion' By Inventing Its Own Computers

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Mark Zuckerberg OCP
Facebook CEO Mark Zuckerberg   Business Insider/Julie Bort

One unique thing that Facebook does is something called the Open Compute Project. That's where Facebook builds it own hardware-like computer servers, hard drives and networking equipment that it uses to serve up the Facebook website.

Thanks to OCP, Facebook has saved "more than a $1 billion in the last three years," CEO Mark Zuckerberg told attendees of the OCP Summit in San Jose, Calif.

A lot of big Internet companies, like Google and Amazon, also design their own hardware, but they treat their homegrown technology as a secret, a competitive advantage.

OCP is unique because it gives Facebook's tech away for free. And it has invited others to contribute, too, a concept called "open-source hardware."

"When you're the first company to design something, sometimes there's an advantage to keeping it proprietary and secret," Zuckerberg explained. "For us it was much better to collaborate with the community and ... deliver something that could blow past what anyone else had done."

In the three years that OCP has been around, it has attracted a large community of hardware users and startups, including one launched by a 17-year-old electrical engineering prodigy this week.

All of them are trying to build faster, better, cheaper servers, storage, networks and other associated data center equipment (like server racks).

Even Microsoft, another company that runs huge data centers all over the world to serve up Bing, Xbox Live and cloud computing, has decided to share its custom-designed servers with the OCP community, PC World's John Ribeiro reports.

In addition to saving money, Zuckerberg says that OCP equipment is greener. It has allowed Facebook to save enough energy to power 40 million homes, and it has reduced carbon emissions "the equivalent to taking 50,000 cars off the road for a year."

He adds: "If we can bring those kinds of savings and those kinds of efficiencies to other companies as well, that's great, and we're really proud of that."

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.