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Governing IT in a Green World

Governing IT in a Green World. July 9, 2008 2:00pm EDT, 11:00am PDT George Spafford, Principal Consultant Pepperweed Consulting, LLC “Optimizing The Business Value of IT” http://www.pepperweed.com. Housekeeping. Submitting questions to speaker

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Governing IT in a Green World

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  1. Governing IT in a Green World July 9, 2008 2:00pm EDT, 11:00am PDT George Spafford, Principal Consultant Pepperweed Consulting, LLC “Optimizing The Business Value of IT” http://www.pepperweed.com

  2. Housekeeping Submitting questions to speaker Type question into small box in the Chat (Q&A) window on the left and click the arrow button. Questions will be answered during 10 minute Q&A session at end of webcast. Technical difficulties? Click on “Help” from top menu – select “Troubleshooting” to test system, get FAQ Or get tech support via Q&A tool

  3. Main Presentation

  4. Agenda What does “Green IT” mean anyways Supporting the Organization’s Green Strategy Potential Risks Energy and Economics Understanding Costs Codify Management’s Intent Process Opportunities Technical Opportunities Continuous Improvement

  5. Green IT Being “green” means to minimize negative environmental impacts and maximize positive impacts IT is a key stakeholder for a variety of reasons Energy usage (our focus today) E-Waste IT services that advance the organization From a governance perspective Need proper management practices in place IT’s role – create and protect value Why are we doing this? What are our objectives? How can we help? “Green IT” is becoming a buzzword to sell products and services Gartner terms it “greenwashing” A lot of conflicting messages and bogus claims

  6. Supporting the Organization’s Green Strategy The environment and being “green” is an organizational issue Need to support the goals of the organization and it’s investors / owners Protect and Enhance Brand Reputation “We recycle our computers.” “We use virtual meetings to cut down on travel” Manage Risks Corporate Social Responsibility (CSR) Economics – there can be very real benefits IT is part of a system Need the proper context Management ecological impacts is a necessary condition

  7. Potential Risks Increasing Operating Expenses Travel and logistics costs are skyrocketing Increasing Energy Costs Running Out of Power Some data centers are being told the grid can’t supply more electricity Global Warming in General The cause isn’t the issue Damage to the Brand Threat of Increased Regulation IT Unable to Support the Business Competition Solving Issues First

  8. Primary Issue – Energy and Information Technologies IT needs electricity to operate!

  9. Energy and Economics (1) Simple Supply and Demand Demand world-wide is increasing 50% by 2030 As demand increases, so do prices Oil cost $113 to $1861 Oil was $142/bbl on 7/1/082 Ceteris Paribus Equilibrium at Q0,P0 Jevon’s Paradox As technology improved, rather than fall, consumption increased due to a drop in prices My take - The lower the cost, the more we waste • http://www.iht.com/articles/2008/06/25/business/25energy.php • http://www.bloomberg.com/energy/

  10. Energy and Economics (2) What is happening is that the whole demand curve is moving out as demand increases but consumers want it at the same price Supply hasn’t caught up and prices are going up If the US will not pay $142/bbl then another country will We are tightly coupled to oil as an economy and as the price of oil goes up, so does the price of substitutes Coal is going up too Fires half of US power plants Coal has doubled in last year Result – Electricity costs have increased 29%1 So … what does this do to operating budgets? • http://www.usatoday.com/money/industries/energy/2008-06-15-power-prices-rising_N.htm

  11. Electricity and the Environment Obviously, IT runs on electricity Demands are increasing Produced in large scale predominantly via Coal Hydroelectric Natural Gas Nuclear Pros and Cons with Each Coal burning plants have come a long way in terms of lowering emissions Carbon Footprint Amount of CO2 released into the environment by humans Carbon Trading – market mechanism that economically incents an organizations to buy and sell carbon credits Carbon tax – government taxes organizations based on CO2 released

  12. Data Centers and Electricity In the US, data centers consumed 1.5% of all electricity in 2006 and growing at 12%1 Data centers forecasted to surpass airlines in terms of CO2 emissions in 2020 (due to electricity consumed) An increase of four fold2 Studies like these increase visibility Brand impacts Potential for regulation A very certain outcome is increased operating costs if left unmanaged • http://www1.eere.energy.gov/industry/saveenergynow/pdfs/doe_data_centers_presentation.pdf • http://bits.blogs.nytimes.com/2008/05/01/data-centers-are-becoming-big-polluters-study-finds/

  13. Understanding Costs Servers can be utilized as little as 6% on average1 Data centers can run at 56% of peak performance1 One watt of IT power used requires about one watt of cooling What about your bill? Do you know what it is for IT? Cost = (Watts x Hours Used) / 1000 x Cost/KW Hr Problem is that that there are inefficiencies • http://bits.blogs.nytimes.com/2008/05/01/data-centers-are-becoming-big-polluters-study-finds/

  14. Power Consumption Chiller 33% IT Equipment 30% UPS 18% Computer Room Air Conditioning (CRAC) 9% Power DistributionUnits (PDUs) 5% Humidifiers 3% Switch / generator 1% Lighting 1% Notice how only 30% of each watt actually goes to the IT Equipment. Out of every 10 watts sent to the data center, only 3 wind up being used by IT equipment. 42% goes to cooling 24% goes to power http://www.thegreengrid.org/gg_content/Green_Grid_Guidelines_WP.pdf

  15. Where to Begin

  16. Codify Management’s Intent (1) Understand the organization’s position on the environment and corporate social responsibility Understand the current internal IT situation by assessing The Data Center Front Office Develop policies identifying what is to be done for IT to support the organization Create and Protect Value Short- and Long-Term

  17. Codify Management’s Intent (2) Develop enterprise standards that factor green requirements in Revise processes Implement metrics Revise Job Descriptions Define responsibilities and targets Tie compensation to targets Set the Tone From the Top

  18. Engage Stakeholders Engage stakeholders to understand their perspectives Implement teams, or formally delegate to existing teams Ensure the teams are exposed to new ideas Publications Training Conferences Internal Examples Build bridges with facilities if separate from IT Accounting Engineering External Examples Your energy utility Federal, state and municipal programs

  19. Management Opportunities (1) Government initiatives Stay abreast of them Department of Energy Environmental Protection Agency Incentives from utilities Talk to your sales / account representative – they may have incentives for the retirement of servers, etc. PG&E is offering $150-300 for each server removed due to virtualization Data Center Strategy Improve existing Build New Outsource Virtualized Data Centers Electricity is 3-4x more expensive in CT than in Idaho What about peak demand times in NYC vs off-peak in Tokyo?

  20. Management Opportunities (2) Review ITIL Capacity Management Capacity Management is tasked with providing IT resources to the organization in a cost-effective manner. Need to factor green IT concepts in Planning for the Future Tracking Existing Use Need formal modeling of capacity requirements vs. ballpark estimates Too much capacity leads to inefficient power utilization True for UPSes, CRACs, etc Conduct Annual Power Assessments Review how power is being used Look for opportunities to improve Project Management Require that green requirements be identified in project requests Have green requirements reviewed approved appropriately

  21. Management Opportunities (3) Purchasing / Hardware Engineering Set minimum standards at a policy level and identify standards for purchasing of new hardware, facilities, etc. Financial Management Understand the electrical power costs to IT May need to be broken out from a larger site bill Track power consumption relative to IT services rendered What business units are consuming what amount of power totaling what cost? Service Design Factor in energy costs (direct and indirect) as part of the design and approval decision making

  22. Management Opportunities (4) Leverage and Trend Metrics Power Usage Effectiveness (PUE) PUE = Total Data Center Facility Power / IT Equipment Power Total Data Center Power includes everything – PDUs, CRACs, IT Equipment, etc. IT Equipment Power is just computers, switches, network gear, etc. Can use to calculate demands If PUE = 3 and new devices is 100 watts then total energy demands could be 3 x 100 = 300 watts total Data Center Effectiveness (DCE) 1/PUE or IT Equipment Power / Total Data Center Power Just a reciprocal but shows what amount of total power is being used by the IT equipment http://www.thegreengrid.org/gg_content/Green_Grid_Guidelines_WP.pdf

  23. High-Level Technical Opportunities On 7/21/08 – “Implementing a Green Data Center” Will be more technical and focused on opportunities within the data center to reduce energy consumption http://solutions.internet.com/4991_default

  24. Technical Opportunities (1) 1 Watt IT Equipment Saved Reduces Cooling 1 Watt Savings on IT equipment can be a 2-for-1 gain Converse is true too – for each watt of IT equipment added, need to factor in a watt for cooling (other areas need to be considered as well such as UPSes, PDUs, etc.) Capital vs. Operating Expense Some cultures “run until things break” Some systems are 10-20 years old Older technology tends to be less energy efficient True for Servers – Can have dramatic savings considering low average computational utilization to begin with Desktops – Reductions of over 50% UPSes – reduction of power loss of up to 70% over 15 year old systems1 Chillers –Reductions of 50%1 Etc. 1 The Green Data Center: Steps for the Journey. http://www.redbooks.ibm.com/abstracts/redp4413.html

  25. Technical Opportunities (2) Old Desktop 200 watt PC + 80 watt 17” monitor = 280 watts 280 watts x 8,760 hrs/year (24x265) /1000 = 2,452 kw/hr per year 2,452 kw/hr x 9.53 cents/kw/hr = $233.51/year to operate Three years = $700.52 Doesn’t include peripherals or cooling impacts Could easily grow to be $300-600/year New Desktop 100 watt PC + 30 watt for 17” LCD = 130 watts $108.41/year to operate Three years = $325.24 Look at the age of systems and factor in the cost of powering them along with traditional support costs of aging technology

  26. Technical Opportunities (3) Telecommuting and remote collaboration Let employees, vendors and customers work from home vs. travel Review Thin Clients Cut down on desktop power consumption Better manage clients Consolidate where possible Some servers are utilized only 6% of potential but are still consuming power via dedicated power supplies

  27. Technical Opportunities (4) Virtualization Easy to add/remove servers Only power up what is needed Virtualize hosts or even the data center Data Center Design Set the temperature no colder than it needs to be (IBM says 72F / 22C) Clean out and organize cables under the raised floor Layout – use hot & cold aisles Properly layout cold tiles Close rack openings Insulation Replace old PDUs, Chillers, CRACs, etc.

  28. Technical Opportunities (5) Use Power Management Features Studies have shown that usage fluctuates on many systems but power consumption does not – this tells us that existing power management features are not being used Proper configuration can reduce power demands by 20%1 Understand Redundancy Energy Costs of redundancy Redundant (N+1) systems – spares are consuming power if on Sometimes hot backups are needed, but not always Review if clusters / hot spares are always needed Monitor Power Use Monitor power to the rack level if possible Track and trend over time 1. http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=295302

  29. Technical Opportunities (6) Distributed Generation / On-site Generation Augmentation - Supply peak power Cover power loss from utility Re-sell power to the utility Technologies Geothermal Chena hot springs dropped kw/hr cost from $0.30 to $0.06 Hydroelectric Solar power Wind Turbines

  30. Continuous Improvement The first step is only the beginning of a journey Needs will change as technologies and the world changes Leverage metrics where possible to track status Conduct quarterly reviews of progress Maintain the tone from the top Formally schedule reviews to assess the current state and look for new opportunities

  31. Vik ChandraProgram Director - IBM Software Group Green Market Management

  32. Software Enabled Opportunities for Energy Efficiency Reduce commuting with online collaboration and increasing work from home Reduce business travel by using online collaboration Comply with environmental regulatory requirements Shift workloads to underutilized servers to reduce energy and floor space needs People Reduce use of paper by enabling business processes to use eForms and images Schedule execution of workload to off-peak hours to use lower cost energy Optimize business processes to reduce energy footprint and costs of operations Optimize applications to reduce needed IT resources and energy Workloads Turn the power down when work (transactions) slows down Consolidate and Virtualize to eliminate floor space and compute infrastructure Optimize HVAC for hot spots to reduce energy consumption Compress your data to lower storage and server needs Infrastructure

  33. Cutting Costs and Carbon Emissions with IBM Software 42% of IBM’s employees do not regularly come into an office saving $100M annually in real estate costs A distributor saved $70k on one training event by avoiding travel People A financial services company reduced average process cycle time by 50% IBM is consolidating 3900  33 System z servers providing an 80% annual energy savings Workloads A financial institution achieved data compression rates of 83% A university achieved 40 to 50% reduction in floor space, 30% reduction in power and cooling costs Infrastructure

  34. Resources (1) Mike Ebbers, Alvin Galea, Marc Tu Duy Khiem, and Michael Schaefer. “The Green Data Center – Steps for the Journey” RedPaper Draft (June 2, 2008 Draft)http://www.redbooks.ibm.com/abstracts/redp4413.html US Department of Energy – Energy Efficiency and Renewable Energyhttp://www1.eere.energy.gov/industry/saveenergynow/partnering_data_centers.html DOE – Creating Energy Efficient Data Centershttp://www1.eere.energy.gov/industry/saveenergynow/pdfs/doe_data_centers_presentation.pdf American Society of Heating, Refrigeration and Air-Conditioning Engineers – Technical Committee 9.9http://tc99.ashraetcs.org/ Creating the Green Data Center http://www.adc.com The Data Center Journalhttp://datacenterjournal.com/ The Green Gridhttp://www.thegreengrid.org Uptime Institutehttp://www.uptimeinstitute.org/

  35. Resources (2) Simon Mingay. “10 Key Elements of a ‘Green IT’ Strategy”. Gartner. December 2007. Energy Information Administration. Electric Power Monthlyhttp://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html National Data Center Energy Efficiency Information Programhttp://www1.eere.energy.gov/industry/saveenergynow/pdfs/national_data_center_fact_sheet.pdf Lawrence Berkeley National Labs – Data Center Best Practiceshttp://hightech.lbl.gov/datacenters.html Kenneth G Brill. “Data Center Energy Efficiency and Productivity”. The Uptime Institute. 2007.http://www.cio.co.uk/whitepapers/index.cfm?whitepaperid=4241 Cogeneration & On-site Power Productionhttp://www.cospp.com US Department of Energy – Distributed Energy Programhttp://www.eere.energy.gov/de/ Chena Hot Springs Geothermal Projecthttp://www.yourownpower.com/ State of California – Distributed Energy Resource Guidehttp://www.energy.ca.gov/distgen/index.html

  36. Thank you for the privilege of facilitating this webcast George Spafford George.Spafford@Pepperweed.com http://www.pepperweed.com The News - Archive, RSS and Email Subscription Instructions http://www.spaffordconsulting.com/dailynews.html (Covers IT management, business, energy, security and a host of other topics)

  37. Questions?

  38. Follow up Webcast On 7/21/08 – “Implementing a Green Data Center” Will be more technical and focused on opportunities within the data center to reduce energy consumption http://solutions.internet.com/4991_default

  39. Thank you for attending If you have any further questions, e-mail webcasts@jupitermedia.com For future internet.com Webcasts, visit www.internet.com/webcasts

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