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Governing IT in a Green World

Governing IT in a Green World. December 2, 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 December 2, 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 Supporting the Organization’s Green Strategy Potential Risks Data Centers and Electricity The Green IT Process Management Opportunities Technical Opportunities Continuous Improvement

  5. Supporting the Organization’s Green Strategy The environment and being “green” is an organizational issue Management of ecological impacts is a necessary condition Green needs to support the organization’s goal(s) The Board establishes the goal(s) for the organization The Board hires and directs management This Board-Management linkage is true organizational governance Management must take the appropriate steps to Move towards the goal (create value) Protect the goal (protect value) Corporate Social Responsibility (CSR) Programs IT is part of the larger organizational system IT’s green efforts need the proper context

  6. 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 “Green IT” is becoming a buzzword to sell products and services Gartner terms it “greenwashing” A lot of conflicting messages and bogus claims Presentation focus will be on data centers and energy

  7. Green Data Center Electrical Demand Management Benefits

  8. Potential Risks Increasing Operating Expenses Travel and logistics costs are skyrocketing Increasing Energy Costs – increasing faster than budgets Running Out of Power Some data centers are being told the grid can’t supply more electricity Can constrain growth / support of the organization Building yet another data center with low utilization 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 the Riddle First

  9. 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/

  10. Electricity and the Environment Obviously, IT runs on electricity Demands are increasing Produced in large scale predominantly via coal today Other methods include Hydroelectric, Natural Gas, Nuclear Pros and Cons with Each Coal burning plants have come a long way in terms of lowering emissions New renewable energy methods are gaining momentum – solar, wind, wave, geothermal, etc. 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 Water Consumption A lot of water is consumed during power generation Data centers use water for cooling Fresh water could very well be a future problem

  11. Understanding Electrical Costs Servers can be utilized as little as 6% on average1 Data centers can run at 56% of peak performance1 A data center is expensive $20 million and up Mega data centers can be $200-500 million just for the facility Improving existing capacity and avoiding building can be very beneficial 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/

  12. 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

  13. Where to BeginThe Green IT Process

  14. The Green IT Process Manage Green IT as a process because: Inputs and Outputs Sub-processes Roles and responsibilities Process Owner Process Manager Metrics and reporting Process integration is vital “The goal of Green IT is to support the green objectives of the organization as defined by the Board and/or a Corporate Social Responsibility management group.”

  15. Green IT Policy Management 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

  16. Green IT Architecture and Standards Mgt Need to establish and enforce standards Work with Technical Management Function (ITIL) IT Operations Management Function (ITIL) Network Engineering Server Engineering Facilities Engineering Procurement Need a Service Development Life Cycle Mindset It’s not about servers in isolation Need to understand the total costs of providing services

  17. Green IT Functional Area Objective Mgt Need to ensure that various IT areas have objectives that align with: Green IT Objectives Organization’s Green Strategy Alignment Initially Ongoing Scheduled Review After Major Change

  18. Green IT Assessments Continuous process improvement Need to understand current state Identify ideal states Gaps / opportunities for Improvement

  19. Green IT Metrics Need baselines! 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 Infrastructure Efficiency (DCiE) 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 Understand Actual Usage and Costs By Service ideally http://www.thegreengrid.org/gg_content/Green_Grid_Guidelines_WP.pdf

  20. Green IT Process Integrations Green IT must work through other processes Mandates alone will not work Need mutual success Examples leveraging ITIL v3: Service Strategy Strategy Generation, Financial Management Service Design Service Level, Availability and Capacity Mgt Service Transition Change and Service Asset and Configuration Management Service Operation Event, Incident, and Problem Management

  21. Cultural Change Set the “Tone From the Top” Engage the right stakeholders Internally Externally – consultants, power company, vendors, etc. Communicate, communicate, communicate Training Metrics drive behavior Revise Job Descriptions Clearly define responsibilities and targets Tie compensation to targeted objectives

  22. Management Opportunities

  23. Management Opportunities (1) Implement IT Asset Management A discipline whose goal is to optimize the lifecycle of assets Need to maximize Return on Assets Understand the Total Cost of Ownership and make decisions accordingly Recognize the CapX/OpX trade-off Lowest purchase cost may have highest total cost Develop Standards for Hardware and Facilities Effective and Efficient Decommissioning Avail of government initiatives Department of Energy Environmental Protection Agency State and Local governments (tax credits, bonds, etc.) Seek out 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

  24. Management Opportunities (2) Carefully establish a data center strategy Improve existing centers / renovate Build New DCs Google built and Amazon is building data centers in Dalles, Oregon to avail of hydroelectric power Leverage cooler climates, cheaper power, lower climate risks, etc. Outsource / colocation services Can you build a DC that is comparable to a $200-500 million facility? Virtualized DCs Electricity is 3-4x more expensive in CT than in Idaho What about peak demand times in NYC vs off-peak in Tokyo? Financial Management Budgeting Truly understand total cost of ownership IT Service Level Asset level Track power consumption relative to IT services rendered At the least, track the data center’s electrical costs Understand how business units are consuming what amount of power and totaling what cost? Drive accountability

  25. Management Opportunities (3) 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 Mandate that green requirements be identified in project requests Ensure compliance to standards at outset and at each control gate Look for lessons learned

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

  27. Technical Opportunities (1) Consolidate Applications Do you really need 20 different financial packages? Can you reduce the servers and storage? Identify and Remove Ghosts 20-30% of servers may no longer be generating valuebut till incurring operating expenses1 1 Watt IT Equipment Saved Reduces Cooling 1 Watt Savings on IT equipment can be a 2-for-1 or even greater Newer is Typically Better Some cultures “run until things break” Some systems are 10-20 years old Newer has more efficient components, better power management, etc. Fairly true across the board: 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%2 1 Brill, Kenneth G. "Data Center Dirty Secrets." Forbes. June 30, 2008. http://www.forbes.com/technology/2008/06/29/google-microsoft-economics-tech-cio-cx_kgb_0630goog.html 2 The Green Data Center: Steps for the Journey. http://www.redbooks.ibm.com/abstracts/redp4413.html

  28. Technical Opportunities (2) Consolidation & Virtualization of Servers 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 Temperature based on manufacturer recommendations Do not want to void warranties! Set on the cool intake side, not the exhaust side Improve air flow Utilize hot and cold aisle designs close leaks, partitions, properly place ducts, cooling tiles, diffusers, etc. Leverage economizers in the cooling system Replace old PDUs, Chillers, CRACs, etc.

  29. Technical Opportunities (3) Pursue Modular Design Approaches How can we scale over time We are increasingly zone-centric – not average Need to evaluate pods Evolved from electrical component, to board level, to server and now to pod-level 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 1. http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=295302

  30. Technical Opportunities (4) Monitor Power Use Monitor power to the rack level if possible Track and trend over time 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 More options are appearing weekly!

  31. 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

  32. New Pocket Guide – The Governance of Green IT Available from IT Governance Covers Governance and Process Considerations Introduces the Green IT Process in More Detail Target publish date is December 11, 2008 Pre-orders Now International order site: www.itgovernance.co.uk/products/2106 US order site: www.itgovernanceUSA.com/product/1827.aspx

  33. Resources (1) The News - Archive, RSS and Email Subscription Instructionshttp://www.spaffordconsulting.com/dailynews.html George’s Green IT Resource Pagehttp://www.spaffordconsulting.com/GreenITResources.html 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 Uptime Institutehttp://www.uptimeinstitute.org/ 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/ The Data Center Journalhttp://datacenterjournal.com/ The Green Gridhttp://www.thegreengrid.org

  34. 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

  35. 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)

  36. Sponsor Slides Follow

  37. Questions?

  38. Next Green IT Webcast On 12/15/08 – “Leveraging Software to Improve Energy Efficiency” http://solutions.internet.com/5346_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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