Sustain and Gain Because Going Green Makes Good Business Sense IBM Corporation IT Optimization 6-Dec-07 1

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1 Sustain and Gain Because Going Green Makes Good Business Sense 2007 IBM Corporation IT Optimization 6-Dec-07 1

2 CSR Priorities: Consumer Opinion Percent of Respondents Protects the environment 18 Supports charities/community 15 Treats employees well 11 Good company in general 9 Acts in society s interest Quality products/services Trusted brand N = 20,098 Source: Corporate Social Responsibility Monitor, IBM Corporation IT Optimization 6-Dec-07 2

3 Welcome IBM s journey in developing sustainable practices and green IT Challenges and Opportunities of Effective Energy Management Think Green Think Ahead: How Green Computing Pays for Itself The Technology that underpins it real solutions to this very real problem 2007 IBM Corporation IT Optimization 6-Dec-07 3

4 Project Big Green 2007 IBM Corporation IT Optimization 6-Dec-07 4

5 Environmental responsibility is a core IBM value Raising the Bar Next 7 Years Further extend IBM s early accomplishments by reducing CO 2 emissions associated with IBM s energy use 12% from 2005 to 2012 via energy conservation, use of renewable energy, and/or funding CO 2 emissions reductions with Renewable Energy Certificates or comparable instruments. Early Actions & Results 40% Between 1990 and 2005, IBM s global energy conservation actions reduced or avoided CO 2 emissions by an amount equal to 40% of our 1990 emissions. Reward & Recognition Computer Program Charter Member 1992 Business Environmental Leadership Council FORTUNE 500 Top , 2005, IBM Efforts are Public and Verified Charter Member 2000 Charter Member , 1999, 2001 Charter member 2003 WRI Green Power Market Development Group Charter member 2000 Since inception 1998 Became the first semiconductor company to set a numerical target for PFC emissions reduction USEPA Climate Protection Award 1998 and 2006 The Climate Group 2005 Green Power Purchaser Award (b) voluntary emissions reporting since % 2007 IBM Corporation IT Optimization 6-Dec-07 5

6 IBM data center global expertise A decade of managing 8M square feet of data centers around the world IBM Strategic Delivery Model IBM Metrics 1997 Today CIOs TECHNOLOGY Host data centers Web hosting centers 80 5 Network 31 1 Global Resources Strategic IGA Location Strategic Web Location for IGA Ethernet & Power9 Networks Applications 15,000 4,700 Plus... Deep experience in helping our clients data center challenges Significant services deployment capability: over 3,300 resources for server, storage and data centers Global breadth: built >30M square feet of data centers; top 5 Chinese banks; India and Egypt telecomm Leverage experience from managing and deploying over 200,000 servers in over 400 centers 2007 IBM Corporation IT Optimization 6-Dec-07 6

7 Why do I need a green data center? Business value: from current state to Green Data Center FINANCIAL Rising global energy prices Squeeze on IT budgets Constraints on IT growth Ability to accurate view baseline energy cost Cost savings from more efficient energy use Relax budgetary pressures to allow growth OPERATIONAL Highly dense server systems Aging data center technology Systems availability risks More computing performance per kilowatt Flexibility to adopt more efficient technology Extend the life of IT equipment ENVIRONMENTAL Corporate social responsibility Lack public image Improve employee morale Meaningful energy conservation Improved public image Positive contribution to the Green movement creates a good place to work 2007 IBM Corporation IT Optimization 6-Dec-07 7

8 Project Big Green Broadest initiative ever undertaken by IBM Project Big Green is IBM s integrated response to carbon concerns. A comprehensive initiative across all pillars of operations, offerings and policy. Reallocating $1 billion each year Reaffirming a long standing commitment at IBM. IBM Project Big Green Environmental Responsibility Industry Solutions Collaboration Across Eco-system Energy Efficient Infrastructure Research & Development 2007 IBM Corporation IT Optimization 6-Dec-07 8

9 Five building blocks provide the tools to operational savings and business growth. Build Plan, build, and upgrade to energy efficient data centers Diagnose Get the facts to understand your energy use and opportunities for improvement IBM Project Big Green Manage & Measure Seize control with energy management software Double your IT capacity In the same energy footprint Reduce operational costs 40-50% energy savings Positive environmental impact Virtualize Implement virtualization and other innovative technologies Cool Use innovative cooling solutions Going green impacts the balance sheet and the planet IBM Corporation IT Optimization 6-Dec-07 9

10 Where does the energy go? Data center Server hardware Server loads 55% Power and Cooling... 45% IT Load... 70% 30% 80% 20% Power supply, memory, fans, Processor Idle Resource usage planar, drives... rate 2007 IBM Corporation IT Optimization 6-Dec-07 10

11 How energy efficient is your data center? Use a simple KPL equivalent for data center energy efficiency to find out where you are today 2007 IBM Corporation IT Optimization 6-Dec-07 11

12 Data center energy efficiency assessments A simple standard to assess data center energy efficiency Compares total power used by the data center to the power used by the technology Provides a market comparison Demonstrates range for opportunity improvement Objective Current Most energy efficient Least energy efficient (1) Standard supported by Green Grid, originally published by Lawrence Berkley National Laboratory, IBM Corporation IT Optimization 6-Dec-07 12

13 Web-based energy efficiency tools Free self assessment tool Energy Efficiency Incentive Finder Assessment Process Twelve questions on energy usage Awareness of power related issues Deployment of tactical quick hitters Extent of strategy data center planning Report on improvement areas IBM Service recommendations Open, Web-enabled Clearinghouse for data center energy efficiency programs offered by local utilities and governments Listing programs available in your community and applicable to your data center Includes participating providers around the world One stop shopping IBM Corporation IT Optimization 6-Dec-07 13

14 Innovations to build or upgrade to green data centers IBM Optimised Airflow Assessment for Cabling Replace cabling systems with high-performance fiber transport systems Yields improved cooling and reduced energy usage across data center IBM Scalable Modular Data Center Provides ready racking, power, cooling, security and monitoring 500 & 1,000 square foot data centers can be deployed in 8-12 weeks About 15 percent below the price of a traditional approach IBM manages integration and coordination of data center IBM Thermal Analysis for High Density Computing Clients can identify and resolve existing and potential heat-related issues Helps prevent outages and provide options for power savings and expansion 2007 IBM Corporation IT Optimization 6-Dec-07 14

15 Data center stored cooling solution Thermal storage solution to improve efficiency of cooling system by 40-50% Shift energy usage to off-peak hours saving up to 30% Provide extra cooling capacity to enable growth and survive grid failures With Cool Battery, IBM cut energy cost of IBM Bromont site by 45 percent Cooling System with PCM Thermal storage device between computer room air conditioners and chillers HVAC unit PCM storage Chiller heat heat Cooling tower 2007 IBM Corporation IT Optimization 6-Dec-07 15

16 Broad energy ecosystem to holistically attack the issue Partnering with leading global data center power and cooling technology providers Governments and energy utilities are also helping clients improve their overall energy efficiency 2007 IBM Corporation IT Optimization 6-Dec-07 16

17 Energy Efficiency in the Infrastructure 2007 IBM Corporation IT Optimization 6-Dec-07 17

18 Significant potential to reduce energy and cost savings Up to 40% annual energy savings for infrastructure alone Representative of a reasonably large size data center of 25,000 square feet Savings at $0.12 per kilowatt hour = $735,000 Savings at $0.18 per kilowatt hour = $1,103,000 Or the equivalent of 850 cars off the road Optimizing across the enterprise yields dramatically greater savings Small data center of 3,500 square feet Consolidated from 4 sites Yielded $7M operational savings Plus $4M in equipment savings 2007 IBM Corporation IT Optimization 6-Dec-07 18

19 Energy efficiency at infrastructure level Leverage innovative technologies Consolidation/Virtualisation Active Energy Management 2007 IBM Corporation IT Optimization 6-Dec-07 19

20 AISO 2007 IBM Corporation IT Optimization 6-Dec-07 20

21 5 decades of chip and system innovations S/360 model 67 1st virtualized machine Thermal conduction cooling technology CMOS processors Modular refrigeration cooling technology High-k metal gates Airgap 1960s s mid-1990s IBM Energy Efficiency Institute, Austin, TX 2000s Power6 1980s VM virtualization late-1990s Copper chip Cell BE processor BladeCenter Air / liquid hybrid cooling technology Flat plate conduction cooling technology 3D chip stacking edram 2007 IBM Corporation IT Optimization 6-Dec-07 21

22 IBM offerings help across the board Data center Server hardware Server loads 55% Power and Cooling... 45% IT Load... 70% 30% 80% 20% Power supply, memory, fans, Processor Idle Resource usage planar, drives... rate 2007 IBM Corporation IT Optimization 6-Dec-07 22

23 Be Lean and Green through System z technology 1200 MIPS Capacity per KWatt x Improvement Performance / KWatt H6 G2 G3 G4 G5 G6 z900 z990 z9 EC 13 years (CMOS Evolution) G2 z9 EC Power increase 20%/year Net Effect: CMOS G2 to z9 EC Performance increased by192x Performance increase 50%/year Performance/KWatt increased by 14x Power density increase 17%/year Performance/sq ft increased by 4,000x 2007 IBM Corporation IT Optimization 6-Dec-07 23

24 Power6 - Designed for Enhanced Energy Efficiency POWER6 Chip Level Functions Power Reduction: Monitor & reduce power to idle logic within cores NAP Mode: Power off inactive cores, restore power when needed Thermal Tuning: Sensors monitor & reduce power to overactive circuits System p570/i570 System Functions Enhanced System Design and Implementation: enables up to 2X server performance uplift over p5-570* Variable Fan Speed (10, RPM): Reduces power to fans (1/3 of total server power) by up to 45% based on ambient temperature** Live Partition Mobility: Workload migration across systems * Based on various SPEC benchmarks; IBM p570 POWER6 result to be submitted on 5/21/07 ** Based on IBM internal measurements # IBM press release; 05/10/07; IBM Corporation IT Optimization 6-Dec-07 24

25 IBM Heat exchanger removes heat at the source Before After Reduces heat exhaust by 50-60% 2007 IBM Corporation IT Optimization 6-Dec-07 25

26 IBM BladeCenter Open, Easy, Green Efficient system design for energy savings based on IBM Research Consolidation extended to network/io devices removing the need for extra power supplies and fans Get best-in-class efficiency for 20% less power than offerings from other vendors Only IBM BladeCenter offers 10G Ethernet connectivity inside the system Up to 95% more energy efficient than external switch solutions 2007 IBM Corporation IT Optimization 6-Dec-07 26

27 Power efficiency in Information Lifecycle Management The ILM Process Managing information through intelligent archive and destruction ILM... move data to the most cost effective storage for its current use In the future... move data to the most power efficient storage that satisfies usage requirements content lifecycle Create / Capture Classify content lifecycle Information Lifecycle Revise Route Approve Publish Archive / Destroy Declare Information Management Audit content lifecycle Security content lifecycle Tiered Storage content lifecycle Compliance Corporate Policies Business Rules content lifecycle 2007 IBM Corporation IT Optimization 6-Dec-07 27

28 Energy efficient tiered storage Millions $7 $6 $5 $4 $3 $2 $1 $0 $6,365,950 $946,405 Floor space Power & Cooling Maintenance Prod + DR Carts Hardware $2,255,346 SATA Disk Tape Blended D+T 10 year TCO example using blended tape & disk best practices Deploy more power efficient storage Utilize storage more efficiently 250TB of storage 25% growth Over 10 years 2007 IBM Corporation IT Optimization 6-Dec-07 28

29 Virtualisation fast path to green data centres 2007 IBM Corporation IT Optimization 6-Dec-07 29

30 Comparison of typical server utilization rates Used Wasted Mainframe UNIX x IBM Corporation IT Optimization 6-Dec-07 30

31 Virtualization creates fast path to green data centers Improves server and storage utilization which: Reduces the number of devices and associated environmentals Allows for targeted thermal solutions for efficiencies Allows for more efficient power distribution, backup, and regulation IBM has virtualisation across all IBM systems Enables dynamic resource management for: Deployment and Operational Optimizations 2007 IBM Corporation IT Optimization 6-Dec-07 31

32 Storage virtualization Pool and share I/O resources for: Improved utilization Reduced energy needs Combined utilization 40% IBM EMC SAN Volume Controller Hitachi IBM HP IBM Combined utilization 80% 2007 IBM Corporation IT Optimization 6-Dec-07 32

33 Active Energy Management 2007 IBM Corporation IT Optimization 6-Dec-07 33

34 Energy Management - Monitor, manage and reduce consumption Knowing what s in your enterprise IBM Active Energy Manager V3.1 Helps companies meter, control even cap their power usage IBM Director Cruise Control for systems and power management IBM Tivoli Monitoring, Monitor, Manage, Alert for use Adapt application usage to power constraints IBM Tivoli Usage and Account Manager Who used what? How much did it cost? Consolidate / eliminate underutilized resources 2007 IBM Corporation IT Optimization 6-Dec-07 34

35 Set power cap to peak - allocation Simulated graph of actual power consumed by the server over time. Today, label power is the only option within the server Label Power Set Power Cap Power typically allocated to a server Based on measured power Over Allocated Power not converted into compute cycles Allocation Model of Server Wasted Power Allocation Power budget not converted into compute cycles Power (watts) Proper Power Allocation Power budget converted into compute cycles Time Power Exec Trending (weeks, months) 2007 IBM Corporation IT Optimization 6-Dec-07 35

36 Energy management policy example Workload migration enables dynamic server consolidation APP 1 APP 2 System 1 APP 5 APP 6 System 3 APP 3 APP 4 System 2 Use of hibernation, powering off servers, and other low power states in combination with other workload balancing and provisioning tools can provide a valuable tool in management of Power and Thermal issues. Automate Energy Control Policy-based automation Control Energy Consumption Consolidate workloads to reduce 2007 IBM Corporation IT Optimization 6-Dec-07 36

37 IBM Global Financing Flattens the Hump in IT Projects Costs Benefits Costs Benefits Net Benefits Net Costs Net Benefits Financing Net Outlays Typical IT Project cost / benefit flow IT Project with financing solution from IGF Client benefits Break even point is brought forward Costs more closely align to benefits Immediate cash flow impact is minimised 2007 IBM Corporation Template Documentation 12/6/

38 Environmentally Responsible Disposal IBM Global Asset Recovery Solutions Buyback services for marketable assets Disposal of assets using environmentally compliant processes Secure disk overwrite services in accordance with high level security standards Packaging and transportation services available Approximately 40,000 units processed per week on worldwide basis Less than 1% sent to landfill, none hazardous material Annually invest more than $100M in infrastructure to support remanufacturing and recycling best practices To optimize TCO benefits, companies require a corporate standard disposition strategy -- Gartner Group 2007 IBM Corporation IT Optimization 6-Dec-07 38

39 Closing thoughts Energy efficiency is a global issue that will continue to have significant impact IBM Project Big Green is defining leadership in energy efficiency Real solutions are available today We are deploying these capabilities with our clients and within IBM We can help you determine how to get started 2007 IBM Corporation IT Optimization 6-Dec-07 39

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