The Facts: Rising energy and carbon costs to UK plc UK energy costs rising year on year UK energy costs have risen 266% since the winter of 2002 European emissions trading legislation proved a major cost to UK organisations in 2005 and is expected to grow £1.7 billion spent on trading vouchers in 2005/06 Carbon Reduction Commitment (CRC) is a mandatory auction-based emissions trading scheme for non-energy intensive business and public sectors Reductions of 1.1 million tonnes of carbon per year by 2020
Why should IT be involved? Capacity under pressure Energy costs are expected to grow from 10% to 30% of IT budget Rapid growth in technology (storage, servers, data) IT innovation could make a big difference to overall environmental impact and can enable organisational behaviour change
IT and global energy consumption IT now generates 2% of global carbon emissions Gartner Symposium/ITxpo 2007 Aviation is responsible for some 2-3% of man-made carbon dioxide emissions
IT versus Airline efficiency Easyjet sell on average 85% of seats on higher density planes EasyJet high efficiency = lower emissions = low fares Average server utilisation 13 per cent Intel 2007
An expanding Digital Universe The global airline industry shows no sign of reducing its activities; with a 5% increase in the number of flights scheduled for May 2007 OAG 2007 Information that is either created or captured in digital form and then replicated in 2006 – is 161 exabytes, growing to 988 exabytes in 2010, representing a compound annual growth rate (CAGR) of 57% - IDC 2007
Does Green IT really exist? Green IT = Efficient IT (That’s what the CFO is going to be looking at) Logicalis believes the phrase ‘Green IT’ reflects a strategic imperative for ensuring the maximum efficiency of every IT deployment, and using IT to influence the efficiency of people and other business resources.
Why it’s not naive to be GREEN Competitiveness Process Costs Overhead Costs Economic Pressures Operational Expenditure Real Estate Transport and travel Energy IT Systems Capital Expenditure Projects Purchases Environmental Impact Culture Consumption Legislation Co2 ratings
Operate vs. Innovate The IT Director Challenge Operate Innovate Capacity Complexity Capability 90% 10% Technology complexity creates increased pressure on cost of ownership and time-to-change Technology expansion complexity and pressures on physical space, energy/cooling cost and capacity Technology innovation creates the challenge of continued skills change and complex integration 85% Operate 15%
The Efficiency Cycle of Opportunities Reduced Operational Costs Business Efficiency Framework ICT Efficiencies Operational simplification Increased resource utilisation Energy consumption reduction Process Efficiencies Real-time workflow Process Automation Enterprise Search Real-time business intelligence Cultural Efficiencies Remote working practices Collaborative working platforms Virtual meeting capabilities Organisational Efficiencies Real-time communication Increased real-estate utilisation Reduced environmental wastage
The Inefficient Truth 86% of ICT professionals do not know the carbon footprint of their department’s activities 50% have never been asked to focus on energy efficiency as a part of an organisation-wide initiative Only 1% of professionals considered vendor environmental information to be excellent whilst 60% said it was poor or confusing 94% of organisations do not provide incentives to the ICT department to act in an environmentally friendly way 66% of the departments have already filled over 75% of the physical floor space of DC 61% expect to reach storage capacity within 24 months
IT as a Strategic Supply Chain Can you SCOR Your IT Delivery? Delivery Reliability at the correct time, at the perfect quantity? Responsiveness how quickly the supply chain delivers Flexibility How quickly the supply chain responds to change Cost Costs associated with operating the supply chain Asset Management How effectively you manage assets to cope with demand SCOR: Supply Chain Operations Reference Model Copyright: PRTM
IT as a Strategic Supply Chain Strategies for Change Fix what isn’t working before focussing on the next-generation solutions Understand what eats up most of your costs Processing / Storage growth? Operational complexity? Supplier sprawl? Connect IT with the business and re-balance supply and demand Understand how IT can help drive the business Ensure core platforms are able to efficiently meet demand Look beyond the technology into the ‘softer’ challenges Data Management Process and Systems Automation Application Consolidation Skills gap within the organisation can limit overall effectiveness Most suitable strategy may involve major change
Today’s IT supply chain Complexity, Capacity and Cost
Every product is now a shade of green The Environmental Life Cycle looks at the ‘total environmental impact’ Product Energy Efficiency Operational Best Practice Business process benefits Disposal A storage system 1% more efficient than a competitor, but storing rubbish, is not efficient! Responsibility 2 TM Environmental Life Cycle ReportMonitorOptimiseAuditEducate
Responsibility 2 TM Environmental Life Cycle Responsibility 2 TM from Logicalis outlines a 5-stage best-practice sustainability programme for environmental efficiency ReportMonitor Collect qualitative data on green initiatives Assess actual savings from major consolidation projects Consolidate into a single environmental dashboard Optimise Consolidate everything. Data Centre, Servers, Storage, Branches etc. Focus on environmental operation from data centre to the desktop Assess business processes against potential technology innovation (home working etc.) Audit Identify key IT energy consumers, audit IT systems utilisation Use proven methodologies to assess options e.g. IBM Zodiac/COBRA Publish environmental efficiency targets for IT Educate Provide education to IT as to the impact of energy use in terms of CO 2 and cost Identify IT Environment Leader Connect IT with organisation wide Environmental Programs (14001) On-going environmental plan Efficiencies – CO 2 saved, energy saved, technology resources saved, floor space saved, money saved Communicate
Responsibility 2 : 10 Areas for Efficient IT 1.Processor (Server) Virtualisation 2.Storage Virtualisation & Consolidation 3.Information Life Cycle Management (ILM) 4.Application Consolidation 5.Desktop Power Management & Thin Client Technology 6.Data Centre Supporting Appliance Consolidation 7.Branch/Remote Office Consolidation 8.Unified Communications and Video Collaboration 9.Shared Service Buildings 10.Digital Forms Responsibility 2 sets out ten key measures that users of IT systems can take to ensure maximum efficiency.
System z – The Invisible Hulk? "We're up against the wall on floor space, and, therefore, power management. We have a strict one-in, one-out policy. No new server comes in without an old server coming out - except on our z/Series [plus] z/VM [plus] Linux environment. If people want services I can deliver on Linux, it's about an hour and they have a server.“ Jim Meine, Minnesota County Government
Industry’s first real-time environmental dashboard Enabling unequivocal demonstration of tangible CO2, and energy savings realised from energy efficient IT solutions and programmes.
Value of going ‘Efficient’ The CIO and IT department must adopt a responsible position Cutting emissions and energy use Improving the efficiency of IT deployment The CIO should promote this strategy to the business IT as a positive carbon use change agent An organisation that promotes responsible IT use The CIO and IT department should demonstrate savings to the business in terms of energy saving and cost saving Market and PR their vision to the business, customers and markets The CIO and IT department must demonstrate leadership and vision