Vernon Turner Senior Vice President, Research

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1 Sustainability, Green IT and Climate Change Management. Bringing Together Opportunities Within ICT Vernon Turner Senior Vice President, Research Copyright 2009 IDC Reproduction is forbidden unless authorized. All rights reserved.

2 Agenda Establishing A Framework For The Business Value Of Green IT A Customer Case Study Sustainability Services Essential Guidance 2009 IDC 2

3 Green IT, Sustainability & Climate Control Energy Platform Influence Green House Gas Emission Targets Cap & Trade - Carbon Tax / Carbon Capture Energy Security / Efficiency Regulation Smart Environments Telco /Network Influence Data Center Facilities Power & Cooling Servers, Storage Virtualization Hardware & Software Management Government Influence Unified Collaboration Delivery and Control Visual communication Remote Workplace Services-driven Networks Extend Network Impact Broadband Celluar Networks 2009 IDC 3

4 Primary Energy Use & Potential Savings 28 % 32 % 40 % Smart Grids Smart Offices Smart Engines Smart Logistics $125 Billion $340 Billion $107 Billion $442 Billion Source: IDC 2008,The Climate Group Report Smart IDC 4

5 Green IT & Sustainability Challenges Is Green IT Still An Important Topic? Is Green IT Still A Business Priority? Business & Operational Requirements Take Precedence Over Environmental Concerns Harmonizing GHG Targets At A Government Level The Need For A Massive Real Time Monitoring Data Network Lack Of Benchmarking Data To Show Progress Dedicated Sustainability Staff The Cost & Availability Of Renewable Energy To Drive All Of The Initiatives 2009 IDC 5

6 Tying Green IT & Business Goals Quality Of Service The Business Value Of Green IT Cost Avoidance Carbon Avoidance 2009 IDC 6

7 Green IT and Sustainability Sus tain a bil i ty : Meeting the needs of the present without depleting resources, or compromising the ability for future generations to meet their own needs 2009 IDC 7

8 Green IT and Sustainability* Market Taxonomy Green Business Green Energy Green IT Economic Sustainability Environmental Sustainability Social Sustainability * Includes Political Sustainability 2009 IDC 8

9 Green IT and Sustainability * Market Taxonomy Green Business Green Energy Green IT Economic Sustainability Environmental Sustainability Social Sustainability Green Mfg., Supply Chain & Transport Mgt. EHS compliance Social Acctg. Other CSR Carbon Mgt. Renewable/ Distributed Energy Env. Mgt. Systems ISO Community & NGO Outreach Green Data Center, desktops & e-waste IT Asset Recycling & Reverse Logistics * Includes Political Sustainability 2009 IDC 9

10 Global Green IT Survey Brazil China France Germany India Japan Mexico Spain United Kingdom Unites States Regional Roll-up: U.S , Latin America - 300, Europe - 468,Asia - 321, Japan - 150: Total = 1, IDC 10

11 The Most Pressing Reasons For Adopting Green ( Customers) What Are The Most Pressing Reasons Impacting Your Company s Adoption of Green IT Cost Of Energy Reputation / Brand Recognition Growth In Server Infrastructure Government Regulation Customer Pressure Source: IDC s U.S. Green IT Survey, September 2008, n = IDC 11

12 What Is The Status Of Each Of The Following Environmental Programs CIOs Are Now More Involved In Environment-related Projects Monitoring or reducing energy use/power consumption Green hardware disposition and recycling Requiring suppliers/procurement departments to follow "Green" policies Improve efficiency of transportation and distribution Water conservation, treatment, and reuse Increase use of renewable and/or alternative energy sources (including wind, solar) Carbon neutrality through reduction and offsetting Source: IDC s U.S. Green IT Survey, September, Water Management: For Each KW/H of Electricity Produced, 2 Gallons Of Water Are Consumed 2009 IDC 12

13 2009 Green IT & Sustainability Priorities Q24 Please rate the role of the following IT products and services will play in your organization's efforts to reduce its environmental impact over the next several years? More Efficient IT Devices Monitoring SW for Energy Consumption Virtualization Webconferencing, etc Sourcing IT From The CLOUD Source: IDC s U.S. Green IT Survey, September IDC 13

14 Working With IDC Customers : Media Company Case Study Business Unit Lead Efforts As A Last Resort Other Transport ation Electricity Energy Reduction Renewable Sources Carbon Offsets Each Business Unit Is Building Internal Energy Teams Incorporating Energy Thinking Into Existing Processes Focus on Low Hanging Fruit & Bold Initiatives Current Carbon Footprint 626K Tons CO2 Per Year 2010 Carbon Footprint = 0 Near Term Focus 2009 IDC 14

15 Green Solution Projects: Media Company Opportunities Server Hardware Desktop Hardware Printing Server Sprawl Desktop Computer Power Mgmt Off Hour Desktop Mgmt Desktop Monitor Power Mgmt Hardware Disposal Program Printer Standby Energy Star 4.0 Compliance Desktop Storage Right Tiering 80 Plus Power Supply Data Center Dynamic Thermal Mgmt Storage Thin Provisioning Data Center Rack Flexible Barriers Thin Client Desktop Priority Solution Proven Tech. And Already In Advance Plan SAN Storage Util. Desktop Power Mgt LCD Monitor Replacement Blade Server Architecture VPN Soft Phone Promising Solution Data Center Temp Office Equip. Telecommunting Windows Server Virtualization Shared Web Server Double Sided Printing MFP Devices Unified Communication Remote Meeting Room Wireless Networked Conf. Rooms High Def. Video Conferences Strong Business Case But Use New Technology Business Travel Data Center Power Cost Effective D.R. Storage Media Opps Paperless Meetings Work From Home Desktop Video Conferencing SAN Storage RAID Reconfig SAN Virtualization Backup Consolidation Tele-presence Video Conferences Tablet PCs I.L.M. Alternate Cooling Metered Power Walled Outlet Power Consumption Mgmt. Tabled Solution Business Case Is Not Strong Enough Or Tech Not Mature 2009 IDC 15

16 Green Solution Projects: Media Company Steering committee prioritizes based on Quality of Service, Cost Avoidance, and Energy Avoidance Opportunities Server Hardware Desktop Computer Power Mgmt Off Hour Desktop Mgmt Storage Right Tiering 80 Plus Power Supply Priority Solution Desktop Hardware Printing Server Sprawl Desktop Monitor Power Mgmt Hardware Disposal Program Printer Standby Energy Star 4.0 Compliance Desktop Data Center Dynamic Thermal Mgmt Storage Thin Provisioning Data Center Rack Flexible Barriers Thin Client Desktop Proven Tech. And Already In Advance Plan SAN Storage Util. Desktop Power Mgt Data Center Temp Office Equip. Telecommunting LCD Monitor Replacement Blade Server Architecture Windows Server Virtualization Shared Web Server Double Sided Printing MFP Devices VPN Soft Phone Unified Communication Remote Meeting Room Wireless Networked Conf. Rooms High Def. Video Conferences Promising Solution Strong Business Case But Use New Technology Business Travel Data Center Power Cost Effective D.R. Storage Media Opps Paperless Meetings Work From Home Desktop Video Conferencing SAN Storage RAID Reconfig SAN Virtualization Backup Consolidation Tele-presence Video Conferences Tablet PCs I.L.M. Alternate Cooling Metered Power Walled Outlet Power Consumption Mgmt. Tabled Solution Business Case Is Not Strong Enough Or Tech Not Mature 2009 IDC 16

17 Business Value of Green Across Four Inter-related Domains Data Centers Printers Power and workload management Virtualization / Consolidation Rack / room layout Cooling delivery Performance per Unit of Power Power management, distribution Memory and Disk tuning Virtualization / Centralization Storage thin provisioning and deduplication Battery Architecture Quality Of Service Cost Avoidance After Asset Life Carbon Avoidance Recovery Power savings U. C Paper savings Virtual Training Ink and solvent Low Carbon, Travel savings Sustainability Collaboration Eco friendly sourcing Video /Telepresence Eco friendly disposal and recycling Integrated Impact BVoG: Green IT Supply Chain Integration Client Computing Communications 2009 IDC 17

18 Datacenter Green IT Trends Energy Costs 65% Believe Green Datacenters Will Cost More, But Worth It IT Is Ready To Explore Renewable Energy Sources ( Solar 34%, Hydro-electric 29%, Wind 18% ) Despite The Economy, 30% Of Enterprises Will Increase Green Datacenter Spending 33% Of Data Center Energy Consumed Is Wasted By AC to DC Conversion 50% Of A Typical Data Center Is Spent On Power & Cooling Components 2009 IDC 18

19 Green Solution Projects : Media Company Carbon Avoidance Server Virtualization Goals Exceeded Total CO2 Goals Two Years Ahead of Schedule CO2 Avoidance Month Project 2009 IDC 19

20 Energy Cost Avoidance ( Power & Cooling) Through Virtualization What if" all the virtualized logical servers were deployed as physical servers 16,000 14,000 70% 60% $M 12,000 10,000 8,000 6,000 4,000 2,000 50% 40% 30% 20% 10% % Power and Cooling Avoidance %Saving 2009 IDC 20

21 The Cost To Manage Virtualization (US$B) Worldwide IT Spending on Servers, Power and Cooling, and Management/Administration Spending ($M) $325,000 $300,000 Power & Cooling $275,000 Mgmt & Administration Standalone Servers $250,000 Mgmt & Administration Virtualized Servers $225,000 New Server Spending $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 ' IDC 21

22 IT Asset Lifecycle : Government Intervention The Waste Electrical and Electronic Equipment Directive (WEEE Directive) The directive imposes the responsibility for the disposal of waste electrical and electronic equipment on the manufacturers of such equipment.. Draft legislation would give money to e-waste research (12 February, 2009 )..would include grant money for universities to conduct research on improving sorting and "demanufacturing" technologies, on new uses for e-waste materials, new electronics designs that would make recycling easier and greener alternatives to hazardous materials IDC 22

23 The Need Of Standards For Asset Disposal E-Waste: The Dirty Secret of Recycling Electronics 2009 IDC 23

24 Standards For Asset Disposal? How do you currently dispose of your retired hardware assets? Donations, NGOs, Employees Employ 3rd Party Asset Disposal Remarket/ Resell Return To Mfgtg/Leasing Co. Trash Store Them Other Government Intervention In Some Markets Will Drive Longer Asset Life Cycles and Change Financing Decisions 2008 Source: IDC s U.S. Green IT Survey, September 2008, n = IDC 24

25 The Size of IT Asset Disposal Companies How do you currently dispose of your retired hardware assets? Less than 10% of the most relevant players generate more than $50 million About 25% get have revenues between $1 million-$5 million Almost 40% have sub- $1 million revenues N=113 U.S.-based ITAD companies surveyed Oct/Nov IDC 25

26 Green IT & Sustainability Making Making The The IDC IDC GRADE: GRADE: IT IT Asset Asset Disposal Disposal Green Recycling and Asset Disposal for the Enterprise Remote/Web apps Onsite Services End-to-End Chain of Custody Offsite Asset Processing Post-Processing Web-based query tool Online documentation Asset inventory management Redeployment/ cascading services Data cleansing Etc. Logistics General handling Transport security Insurance Etc. Data cleansing Product inspection and testing Receipt reporting Asset tag removal Inventory settlement reporting Refurbishing Parts harvesting Recycling Remarketing Reporting 2009 IDC 26

27 Green IT & Sustainability Services Opportunity Source: IDC's Green IT Corporate Survey, October IDC 27

28 Green IT & Sustainability Services Planning: Define sustainability strategy, goals, metrics & data requirements Define energy, raw materials & waste management strategies Assess sustainability, benchmark others Plan for biodiversity Site-level sustainability services (building & systems design) Define carbon management strategy Liaise with external organizations/stakeholders Training: Environmental, Health & Safety (EHS) reporting Sustainability reporting (economic, environmental or social) Efficient use of natural resources / biodiversity Support: Packaged applications support for supply chain management Packaged applications support for transportation management Packaged applications support for measure/monitor energy or CO2 Packaged applications support for carbon trading/credits Implementation: Organizational change effort related to sustainability ERM or SCM systems (for more effective use of natural resources) Power management/ measuring/monitoring systems Corporate Social Responsibility or social accounting systems Tracking databases Manufacturing, supply chain and transportation best practices Manage/Operate (on behalf of client): Identify enterprise risk management issues related to sustainability Accounting of energy usage or carbon credits & settlements Evaluate suppliers credentials/offerings related to sustainability IT product / infrastructure lifecycle management Measure/monitor energy or CO2 on behalf of clients Hosting ERM or SCM systems (for more effective use of natural resources) Environmental Health & Safety monitoring/reporting (incl. voluntary) Carbon trading / emissions reporting & analysis Telecommuting/videoconferencing IT asset disposal/recycling & reverse logistics Selection of alternative energy systems/sources Brand or reputation management related to 2009 sustainability IDC 28

29 Essential Guidance Compliance Will Drive Stimulate New Opportunities Sustainability Analytics Will Become The New ICT Hot Spot The CIO Will Demand Vendors Show The Business Value Of Green The Network Will Become The Green IT High Ground On The Competitive Landscape 2009 IDC 29

30 Contact Information Please me at Please fill out your Directions Evaluation form Please have your badge scanned to receive followup information 2009 IDC 30

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