Published 2Q Eric Woods Research Director. Clint Wheelock President

Transcription

1 EXECUTIVE SUMMARY: Green Data Centers IT Equipment, Power and Cooling Infrastructure, and Monitoring and Management Tools: Global Industry Drivers, Market Analysis, and Forecasts NOTE: This document is a free excerpt of a larger report. If you are interested in purchasing the full report, please contact Pike Research at sales@pikeresearch.com. Published 2Q 2012 Eric Woods Research Director Clint Wheelock President

2 Section 1 EXECUTIVE SUMMARY 1.1 Green Data Centers and the Transformation of IT IT has a key role to play in transitioning to a low-carbon economy and supporting global sustainable development. At the same time, though, the IT industry is under increasing pressure to show it can become more energy-efficient and reduce its overall environmental impact. As other industries transition to smart operations and consumer-focused IT services continue their rapid expansion, the demand for data center capacity continues to rise. The rapid adoption of IT use in the emerging economies is also providing a powerful engine for the growth of data center capacity. In turn, the growth in demand is further increasing the energy footprint of the data center industry. Meanwhile, the cost of doing business is under close scrutiny as the global economy continues to move at a sluggish pace. There are strong financial incentives for improving the energy efficiency of the data center. As the cost of data center energy becomes more visible, the financial benefits of moving to a greener mode of operation become even more evident. Indeed, a combination of rising energy costs, increased demand, environmental concerns, and economic pressure has made the green data center a focal point for the transformation of the IT industry as a whole. 1.2 Trends Shaping the Green Data Center There is no single technology or design model that makes a data center green. The green data center is a direction of travel it represents a continuous program of improvement that involves a commitment to introducing best practices and efficient technologies wherever possible. Simply put, the modern data center has to be energy-efficient to address energy costs and carbon emissions constraints. Yet, it also has to be more dynamic in its adjustment to new business needs and technology opportunities. Moreover, the green data center is connected to the broader transformation that data centers are undergoing. This transformation encompasses technical innovation, operational improvements, new design principles, changes to the relationship between IT and business, and changes in the data center supply chain Growth in Computing Power Moore s Law continues to be one of the fundamental forces shaping the modern data center. Any computing device in use today is an order of magnitude more powerful than its prior generation. Server technology refreshes are enabling greener data centers through reduced energy consumption and total heat output. Furthermore, opportunities abound for server and data center consolidation. However, new levels of computing power are putting additional strains on existing power and cooling infrastructures. Aligned with the move to more powerful, energy-efficient servers, virtualization is the innovation with the greatest impact on the shape of the modern data center. It is also recognized as one of the most effective steps toward improving power efficiency in the data center. In itself, however, virtualization may not lead to reduced energy costs (e.g., energy costs will not decline if consolidation is used to increase capacity while reducing the 1

3 server footprint). To gain the maximum benefits from virtualization, other components of the data center infrastructure will need to be optimized to support more dynamic and higher-density computing environments Cloud Computing The move to cloud computing models is one of the most dramatic trends in the IT industry. Cloud computing models in all their diversity across public, private, and hybrid clouds will be the predominant paradigm for the next generation of computing services. We are, however, only at the beginning of the long investigation and debate as to the most energy-efficient and environmentally sensitive ways to provide those services and use them effectively. Cloud computing has many efficiency advantages, but new metrics and new levels of transparency are required if its impact on the environment is to be adequately assessed. It also places much greater utilization demands on the data center and introduces greater variability in workloads, which in turn drives a requirement for more adaptable cooling and power systems Financial Constraints and Incentives The drive to cut costs in response to the global economic slowdown is also having an effect on data centers. Organizations are looking to consolidate data centers to reduce costs and avoid capital investment in new sites where possible. Rising energy prices and uncertainty about the future supply and cost of electricity are also putting the spotlight on data center energy consumption. As well as making enterprises more cautious about building new data centers, these pressures are adding to the attraction of alternative models for data center provision in the form of cloud computing, outsourcing, and hosting services. More fundamentally, the relationship between the data center and the businesses it serves is also changing. As the data center s true costs becomes more visible, a new transparency is being brought to discussions about energy consumption and required infrastructure investments. This, in turn, is contributing to a broader transformation in the relationship between the data center and the businesses it serves Management, Monitoring, and Metrics A dynamic data center is a much more complex operation than a traditional static model. As such, it requires more sophisticated management tools and a holistic view of the entire facility. It also requires much closer relationship between facilities and IT professionals. Data center management tools are gradually closing the gap between cooling, power, and IT systems through greater visibility into infrastructure and IT performance, embedded intelligence, and automated response to real-time changes in the environment. The ultimate goal is closed-loop management of the data center. Such management provides integrated and automated control of the environment to match current and predicted IT load. However, the efficiency and cost of a data center can only be truly assessed if both the resources it uses and the work it does (and therefore the benefits it provides) can be measured. Power usage effectiveness (PUE) ratings for data centers are a first, relatively simple step toward achieving this; yet, PUE hides as much as it discloses. Much work is being done to define an acceptable measure for the productivity of the data center. If this 2

4 can be realized, a better understanding of the data center s carbon footprint will emerge and a new light will be shined on the value of IT as a whole Modularization Modularization in its various forms is one of the key concepts in modern data center design. Forms of modularization include containerized solutions, prefabricated components deployed on-site, controlled design templates, and standardized procurement. What is common across these approaches is the incremental provisioning of integrated, replicable solutions. A modular approach enables a standardized and tested model for the data center to be combined with a flexible approach to deployment. Modularization can also be seen as part of a broader shift to an industrialized view of the data center that spans changes in design and construction, operational parameters, business alignment, and services provision Public Policies and Regulation The level of government rules and regulations green data centers must adhere to vary from country to country and region to region. In the United States and throughout Asia Pacific, the public policies specific to GHG emissions and environmental standards are relatively weak. However, data centers can expect to increasingly come under the purview of regulatory and voluntary agreements on energy efficiency, GHG emissions, water consumption, and other environmental issues. Such moves will increase the commercial benefits of green data center design and provide further momentum for the market for energy-efficient technologies. 1.3 Market Size The green data center market can be defined as the revenue opportunity generated by the operational improvements and technical innovations that are increasing the energy efficiency of data centers. The critical issues in terms of investments in the green data center are the speed at which the majority of data centers implement basic operational improvements, the rate at which modern cooling and highly efficient power infrastructures are adopted, and the level of virtualization achieved for servers and storage. Pike Research divides the market into three key technology areas: power and cooling infrastructure; IT equipment; and monitoring and management. The move to energy-efficient data centers is already a key driver for growth in each of these areas. Power and cooling infrastructure suppliers are providing innovative cooling technologies and ultra-efficient power systems. They are also looking to provide more integrated solutions, including modular data center offerings and advanced management tools. Meanwhile, improvements in energy consumption in relation to computing capacity are providing the cost justification for the faster refresh of IT equipment. Finally, although data center energy management is an emerging market that has yet to be established as mainstream technology, it is a segment that will grow rapidly over the next 5 years. 3

5 Pike Research forecasts that the green data center will offer an annual market opportunity that exceeds $45 billion worldwide by The Asia Pacific region is projected to have the highest revenue growth through 2016 with a CAGR of just under 30% between 2011 and Double-digit revenue growth is also projected for Europe and North America (CAGRs of almost 27% for both markets). Chart 1.1 Green Data Center Revenue by Region, World Markets: ($ Billions) $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 North America Europe Asia Pacific Middle East & Africa Latin America $ (Source: Pike Research) 4

6 Section 9 TABLE OF CONTENTS Section Executive Summary Green Data Centers and the Transformation of IT Trends Shaping the Green Data Center Growth in Computing Power Cloud Computing Financial Constraints and Incentives Management, Monitoring, and Metrics Modularization Public Policies and Regulation Market Size... 3 Section Market Issues The Rise of the Green Data Center The Global Data Center Footprint Defining the Green Data Center What Is a Green Data Center? Other Elements of the Green Data Center Transforming the Data Center: Drivers for Change The Rising Demand for Data Center Services Reducing the Global Carbon Footprint ICT Industry Leadership Corporate Sustainability Objectives Public Policy and Government Initiatives Financial Imperatives Technology Drivers Greening the Data Center First You Must Measure PUE: The Global Standard Metric for Data Center Efficiency Cooling Power Efficiency IT Equipment and Applications Data Center Monitoring and Management Data Center Design: The Move to Modularization Market Dynamics The Industrialization of the Data Center Vertical Markets Key Player Strategies The IT Giants Cooling and Power Infrastructure Providers IT Equipment and Software Providers The New Internet Companies Data Center Operators IT Service Players Regional Drivers and Priorities North America Europe

7 2.8.3 Asia Pacific China Singapore Japan India Market Challenges Barriers to Success Risk Aversion The Gap Between IT and Facilities Making the Financial Case Better Energy Monitoring Better Metrics Section Technology Issues Metrics PUE and DCiE Measuring Data Center Productivity CUE and WUE Cooling The Challenge The Move to Best Practices Improving Air Flow Raising the Operational Temperature Raise the Floor or Not? Free Cooling and Economization Rack and Server Cooling Power Infrastructure The Challenge: Efficiencies of Delivery and Distribution Best Practices Battery-Based UPS Systems Rotary and Flywheel UPS Power Conversion On-Site Generation IT Equipment and Applications The Drive to Virtualization Server Optimization The Engine of the Data Center Energy-Efficient Processors Power Management Storage The Challenge Improving Storage Efficiency Storage Efficiency Technologies Network Equipment Data Center Energy Monitoring and Management Increasing the Granularity of Monitoring Data Data Center Energy Efficiency Software Section Standards and Regulation The Role of Standards in the Data Center American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) U.S. Department of Energy Save Energy Now Data Center Program U.S. Environmental Protection Agency ENERGY STAR Rating for Data Centers

8 4.5 EU Code of Conduct on Data Centres Energy Efficiency The Green Grid Institute of Electrical and Electronics Engineers (IEEE) U.K. CRC Energy Efficiency Scheme U.S. Green Building Council LEED Section Key Industry Players E Capgemini Cbeyond Cisco Systems Colt Group Emerson Network Power EvoSwitch Fujitsu Green House Data HCL Technologies Intel Juniper Networks Microsoft NetApp Next Generation Data nlyte Software Power Assure Procter & Gamble Rackspace Hosting Schneider Electric Vantage Data Centers Verne Global ViaWest Vigilent Section Market Forecasts Forecast Assumptions Data Center GHG Emissions Green Data Center and Overall Data Center Revenue Green Data Center Revenue by Region Green Data Center Opportunity by Technology Stream Summary of Regional Green Data Center Market Trends North America Europe Asia Pacific Section Company Directory Section Acronym and Abbreviation List Section Table of Contents Section Table of Charts and Figures Section Scope of Study Sources and Methodology

9 Notes

10 Section 10 TABLE OF CHARTS AND FIGURES Chart 1.1 Green Data Center Revenue by Region, World Markets: Chart 2.1 Data Center GHG Emissions by Region, World Markets: Chart 6.1 Data Center GHG Emissions, World Markets: Chart 6.2 Green Data Center Technology Market and Overall Data Center Revenue, World Markets: Chart 6.3 Green Data Center Revenue by Region, World Markets: Chart 6.4 Green Data Center Revenue by Technology Sector, World Markets: Chart 6.5 Green Data Center Market Share by Region: Chart 6.6 Green Data Center Market Share by Region: Figure 2.1 Components of the Green Data Center... 8 Figure 2.2 Moore s Law Figure 2.3 Direct Current vs. Alternating Current in the Data Center Figure 3.1 A Simple Mode of Hot/Cold Aisle Containment Figure 3.2 Data Center Power Distribution Figure 3.3 Cumulative, Cascading Benefits of Server Optimization at Component Level Figure 3.4 Example of Data Center Energy and Performance Management Software Table 3.1 Storage Efficiency Technologies Table 6.1 Data Center GHG Emissions, World Markets: Table 6.2 Green Data Center Technology Market and Overall Data Center Revenue, World Markets: Table 6.3 Green Data Center Revenue by Region, World Markets: Table 6.4 Green Data Center Revenue by Technology Sector, World Markets: Table 6.5 Green Data Center Revenue by Technology Sector, North America: Table 6.6 Green Data Center Revenue by Technology Sector, Europe: Table 6.7 Green Data Center Revenue by Technology Sector, Asia Pacific:

11 Section 11 SCOPE OF STUDY Pike Research has prepared this report to present an analysis of the green data center market and associated technologies. The report s purpose is not to provide an exhaustive technical assessment of all of the technologies that may be related to the green data center. Rather, it aims to provide a strategic examination of the market. Pike Research focuses on key business drivers, technology issues, regulatory factors, customer demand dynamics, and the competitive landscape. This report also provides global and regional forecasts for the green data center market ( ) that are reflective of market conditions and technology impacts. SOURCES AND METHODOLOGY Pike Research s industry analysts utilize a variety of research sources in preparing Research Reports. The key component of Pike Research s analysis is primary research gained from phone and in-person interviews with industry leaders including executives, engineers, and marketing professionals. Analysts are diligent in ensuring that they speak with representatives from every part of the value chain, including but not limited to technology companies, utilities and other service providers, industry associations, government agencies, and the investment community. Additional analysis includes secondary research conducted by Pike Research s analysts and the firm s staff of research assistants. Where applicable, all secondary research sources are appropriately cited within this report. These primary and secondary research sources, combined with the analyst s industry expertise, are synthesized into the qualitative and quantitative analysis presented in Pike Research s reports. Great care is taken in making sure that all analysis is well-supported by facts, but where the facts are unknown and assumptions must be made, analysts document their assumptions and are prepared to explain their methodology, both within the body of a report and in direct conversations with clients. Pike Research is an independent market research firm whose goal is to present an objective, unbiased view of market opportunities within its coverage areas. The firm is not beholden to any special interests and is thus able to offer clear, actionable advice to help clients succeed in the industry, unfettered by technology hype, political agendas, or emotional factors that are inherent in cleantech markets. NOTES CAGR refers to compound average annual growth rate, using the formula: CAGR = (End Year Value Start Year Value) (1/steps) 1. CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are given, the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given as well. Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments, and sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2012 U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding. 90

12 Published 2Q Pike Research LLC 1320 Pearl Street, Suite 300 Boulder, CO USA Tel: This publication is provided by Pike Research LLC ( Pike ). This publication may be used only as expressly permitted by license from Pike and may not otherwise be reproduced, recorded, photocopied, distributed, displayed, modified, extracted, accessed or used without the express written permission of Pike. Notwithstanding the foregoing, Pike makes no claim to any Government data and other data obtained from public sources found in this publication (whether or not the owners of such data are noted in this publication). If you do not have a license from Pike covering this publication, please refrain from accessing or using this publication. Please contact Pike to obtain a license to this publication. 91