Finding the Value in Green Florence D. Hudson Energy & Environment Executive Corporate Strategy IBM 2008 IBM Corporation 21-May-09 1
Factors and Influencers Demanding Our Attention Laws, Regulation, Standards Governmental regulations and laws designed to reduce emissions of greenhouse gases, protect natural resources and limit further damage Business Opportunities and Challenges Develop greener products and technologies to capture emerging market opportunities while balancing environmental impact. Stakeholder From investors to market analysts, from employees to consumers and NGO s, the demand for consideration of environmental and economic consequences of our activities is growing Costs and Availability Rising costs and uncertain availability of energy, waste disposal, water and raw materials; risks for physical assets due to climate change / global warming 2008 IBM Corporation 21-May-09 2
Organizations Stand to Benefit from a Holistic Approach Strategy Align the Corporate Responsibility strategy and overall Business strategy. People Reduce travel, real-estate and office costs without impact to productivity. Attract top talent. Information Control data growth and impact while maintaining compliance readiness. Products & Services Find and exploit new market opportunities related to green. IT Evaluate and enhance current IT, design new infrastructures. leverage virtualization & consolidation, to save energy and reduce operating cost. Property Track, deploy, locate and manage the environmental impact of physical assets. Business operations Reduce cost of operations and supply chain, increase their efficiency and effectiveness. 2008 IBM Corporation 21-May-09 3
See Where You Are and What is Possible IBM Energy & Environment Benchmark Tool See where you are in each area of the Energy & Environment Obtain your "green" score Compare your green score to others in your industry Get started: http://green.bathwick.com/ibm_egreen/uk IBM Virtual Green Data Center in Second Life See what is possible by touring an energy efficient data center on line Get started: http://w.on24.com/clients/ibmgreen 2008 IBM Corporation 21-May-09 4
Designing Energy Efficient Data Center Facilities IBM Site and Facilities Services Significant services deployment capability: over 3,300 resources for server, storage and data center services Designed and built over 30 million square feet of raised floor for clients in 40 countries Global experience to provide end-to-end for: Data center strategy Data center energy efficiency assessments Data center design and build Data center consolidation and relocation IBM data center family TM of solutions align your capital and operating costs to your business and IT needs to allow you to pay as you grow with: Scalable modular data center Enterprise modular data center High density zone 100 s, 1,000 s, 10,000 s of sq. ft. and beyond Mobile Measurement Tool for energy efficiency diagnosis 2008 IBM Corporation 21-May-09 5
Compute Resource Innovations IBM System z10 EC IBM System x3950 IBM POWER Systems IBM BladeCenter IBM Rear Door Heat exchanger IBM idataplex IBM System Storage Up to 93% savings in energy costs and 46% less space than other servers 64-core scalability, now for x86 large scale virtualisation IBM Power 595 uses 91% less energy and 98% less space than comparable systems. Uses up to 24% less energy than the other systems. Water cooled solution that is 4000x times more efficient than air Cuts energy costs 40% compared to equivalent compute power in an enterprise rack TS7530 Tape and SAN Volume Controller and virtual disk. Can cut cost 10X 2008 IBM Corporation 21-May-09 6
Customer Benefits from IBM Green IT and Datacenters Average achievable energy savings greater than 40% Data Center Energy Efficiency assessment shows average pay back < 2 years Average utilization rates increased 2X to 4X $1 energy savings drives another $6-8 operational savings on average Source: Data from subset of IBM engagements with over 2000 clients where savings have been quantified. 2008 IBM Corporation 21-May-09 7
Distributed IT Must Also Be Addressed DataCenter / IT Electricity Use Estimate Client Example of Distributed IT Electricity Use Server closet 12% Server room 16% Printer 6.4% Dept. Server 11.0% Screen 11.0% Photocopier 1.0% Data center 72% Network 14.2% Laptop 3.1% Fax 0.3% Desktop 42.0% Source: Report to Congress on Server and Data Center Energy Efficiency Public Law 109-431, U.S. Environmental Protection Agency (2007) Source: IBM Distributed IT Carbon Management Diagnostic report to HMRC, 2008 2008 IBM Corporation 21-May-09 8
Trends in the midmarket total cost is the major driver Increased energy use Server rooms have doubled their energy use in the past five years. Koomey, February 2007 Rising costs US commercial electrical costs increased by 10% from 2005-06. EPA Monthly Forecast, 2007 Environmental responsibility 41% of mid-sized enterprises with 500-1000 employees report implementing green considerations in sourcing products and RFPs. Info-Tech, March 2008 2008 IBM Corporation 21-May-09 9
IT energy costs in the midmarket [Server room] power and cooling costs will increase to more than one-third of the total IT budget which will elevate this cost element into a priority position for CFOs, facilities managers, and IT executives. Robert Frances Group Small and midsize companies see energy costs as one of their top two budget line-item increases. IBM Study 2008 IBM Corporation 21-May-09 10
Why should you green your IT infrastructure? Reducing your footprint reduces your overall IT costs (less maintenance, management, energy and cooling). Recapture resiliency. Recycle end-of-life equipment. Green IT delivers profound results: Up to 40% reduction in power and cooling or more Up to 80% reduction in floor space Up to 4x utilization rate increase Avoid new construction Can you afford to wait? 2008 IBM Corporation 21-May-09 11
Questions to ask yourself Do you have a plan to address your increasing energy costs or usage? How do you assess energy usage and measure the efficiency of your server room? Do you envision server sprawl to accommodate new applications? Is your server room power and cooling infrastructure more than 5 years old? Can you describe your energy management plan? Can you keep systems critical to your business up and running during a power drain or surge? How do you dispose of your old IT assets? 2008 IBM Corporation 21-May-09 12
Bryant University USA: IBM Green IT success story Rapid deployment of a data center at 20% less cost than a traditional data center raised floor Client requirements Decentralized IT infrastructure was costly, inefficient and increasingly unable to scale to growing demands for IT services Needed to consolidate to an enterprise-class data center Solution Implemented an IBM Scalable Modular Data Center solution with advanced InfraStruXure architecture from IBM Alliance Partner APC Standardized on IBM BladeCenter for virtualized Microsoft Windows and Linux Saves on power and cooling costs; can provision new virtual servers in < 1 day Benefits Reduced physical servers from 75 to 40 40 to 50 percent reduction in floor space requirements Contributed to reduced carbon footprint and reduced power consumption/cooling The bulk of the installation was completed within just 4 days. The quality of the engineering work and project management from IBM was outstanding Rich Siedzik, Director of Computer and Telecommunication Services, Bryant University We consulted several vendors and it was clear that IBM had the edge in terms of innovative ideas Art Gloster, Bryant University CIO 2008 IBM Corporation 21-May-09 13
Benefits of the IBM energy efficiency IT solutions Lower operating costs Greater performance per watt Reduced energy consumption during times of reduced workload utilization Cost-effective server room Fewer servers in the server room through virtualization Options for dealing with unwanted or unused IBM and non-ibm IT assets, while also helping comply with new electronic waste and information privacy laws 2008 IBM Corporation 21-May-09 14
Active Energy Management Enterprise wide Trending consumption on individual or group level Energy Efficiency Certificate ( Neuwing Energy Ventures) Retrieve temperature and power information Establish baseline use/cost Data Center Infrastructure Assets Enterprise Management Tools (Alignment with business level service objectives) software Spatial visualisation Facility Infrastructure Assets Facility Power and Cooling Providers CRAC UPS PDUs Wireless Sensors IBM Systems Director Active Energy Manager and IBM Tivoli Suite Building Automation Systems Facilities Systems HVAC Power BU Lighting Fire Security Desktop (future) 3 rd Party Servers and Storage IT Physical and Virtualised Assets 2008 IBM Corporation 21-May-09 15
Addressing the demand side Home Energy 36.2% Driving and Flying 44.3% By 2020 Personal information will grow 16x Between 2000 and 2010 Storage will grow 69x Growth in Application and Business workloads doubles every 2 years. Food and Diet 15.1% Recycling and Waste 4.4% Stem the growth of data Data de-duplication Compression Storage virtualization Policy-driven data retention and migration practices Integrated compliance & archiving Source: IDC, 2007 Efficient Applications/Processes Application virtualization & consolidation Dynamic workload distribution Green SOA efficiencies Energy cost allocation & billing Business process optimization Improve Productivity Online collaboration (IM, Web Conference etc) and learning Paper & waste reduction Multi-site SW development coordination Human task automation Source: The nature conservancy 2008 IBM Corporation 21-May-09 16
Environmentally Responsible Disposal 1 billion computers will potentially be scrapped between now and 2010 55% of US-based companies do not have an IT disposal strategy IDC, Gartner and the National Safety Council IBM is leading recycler of IT equipment Approximately 40,000 units per week Less than 1% to the landfill Documented the collection and recovery of over 1.5B pounds end-of-life waste since 1995 85% of machines returned to IBM remanufacturing centers are reused or resold 2008 IBM Corporation 21-May-09 17
Monitoring & Verification Transparency IBM & Neuwing Energy deliver Industry s first EEC Program EECs quantify, measure, verify, certify energy efficiency projects Determine the initial energy draw from identified infrastructure using industry accepted profiles Review of energy draw after steps are taken to reduce energy consumption Periodic audits to confirm reductions still in effect Available in 34 Countries Broad range of qualifying projects: Data center design/retrofits Server & Storage upgrades Virtualization (server, storage, network) General office space projects Collaborating with Utilities to establish as vehicle for demand reduction incentives 2008 IBM Corporation 21-May-09 18
Using Energy Efficiency Certificates (EECs) to Verify Savings IBM Strategic Data Center Southbury, CT Scope Performed thermal assessment with Mobile Measurement Technology IT Trends and Best Practices Evaluation IBM Business Partner Impact 18 CRAC units turned-off Assessment across the entire facility 1600 MWH/year saved 66% reduction of space Power reduced 74% Performance increased 2X Intent Monetize EECs for ROI Retire EECs against goals 2008 IBM Corporation 21-May-09 19
Enterprise Sustainable Operations & Management Services Optimizing energy and water consumption across the enterprise Establishing green credentials for regulation or brand positioning IBM IT Carbon Study workshop High-level view of energy usage across the infrastructure Characterization of IT s green maturity Prioritized opportunities and associated returns Scope includes: Printers, Network, Facilities upgrade (server room, server closet), Enhanced desktop, etc 2008 IBM Corporation 21-May-09 20
IBM s Project Big Green 1990-2007, avoided energy use-co 2 emissions equivalent to 45% of IBM s 1990 energy use, average saving of $18.2 million per year in utility costs. Commitment to double compute capacity by 2010 without increasing energy consumption or environmental impact http://www.ibm.com/ibm/responsibility/ IBM Strategic Data Centers benefits realized to date: New 72,000 square foot data center designed to achieve 71% efficiency rating 18,500 virtualized images deployed as part of 3900-to-30 server consolidation Annual energy usage reduced by as much as 80% Reduced floor space at one location by 85% Achieved operational savings as high as 70% 2008 IBM Corporation 21-May-09 21
Plugging In. How to Get Started. 1. Be proactive and get started 2. Put someone in charge 3. Develop a clear green agenda with quantifiable goals 4. Determine energy baselines and track progress 5. Close the knowledge gap educate and communicate 6. Employ proven change management techniques 7. Take action! Source: The Greening of Government: A Study of How Governments Define the Green Agenda, IBM Institute for Electronic Government, Feb 2008 www.ibm.com/government 2008 IBM Corporation 21-May-09 22
IBM can help you find the value in green visit ibm.com/green 2008 IBM Corporation 21-May-09 23