Copyright 2009 IDC | Reproduction is forbidden unless authorized. All rights reserved.

Sustainability, Green IT and Climate Change Management. Bringing Together Opportunities Within ICT

Vernon TurnerSenior Vice President, Research

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Agenda

Essential Guidance

Establishing A Framework For The Business Value Of Green IT

A Customer Case Study

Sustainability Services

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Green IT , Sustainability & Climate Control

• Data Center Facilities• Power & Cooling• Servers, Storage• Virtualization• Hardware & Software Management

Platform Influence

• Unified Collaboration• Delivery and Control • Visual communication• Remote Workplace• Services-driven Networks• Extend Network Impact• Broadband• Celluar Networks

Telco /Network Influence

• Green House Gas Emission Targets• Cap & Trade - Carbon Tax / Carbon Capture• Energy Security / Efficiency• Regulation • Smart Environments

Government Influence

Energy

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Primary Energy Use & Potential Savings

32 %

40 %

28 %

Smart Grids $125 BillionSmart Offices $340 BillionSmart Engines $107 BillionSmart Logistics $442 Billion

Source: IDC 2008 ,The Climate Group Report Smart 2020

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Green IT & Sustainability Challenges

Business & Operational Requirements Take Precedence Over Environmental ConcernsHarmonizing GHG Targets At A Government LevelThe Need For A Massive Real Time Monitoring Data NetworkLack Of Benchmarking Data To Show ProgressDedicated Sustainability StaffThe Cost & Availability Of Renewable Energy To Drive All Of The Initiatives

Is Green IT Still An Important Topic?Is Green IT Still A Business Priority?

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Tying Green IT & Business Goals

Quality Of Service

Cost Avoidance

Carbon Avoidance

The Business Value Of Green IT

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Green IT and SustainabilitySus·tain·a·bil·i·ty :

Meeting the needs of the present without depleting resources , or

compromising the ability for future generations to meet their

own needs

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Green IT and Sustainability* Market Taxonomy

Green Business Green Energy Green IT

Economic Sustainability

Environmental Sustainability

Social Sustainability

* Includes Political Sustainability

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Green IT and Sustainability * Market Taxonomy

Green Business Green Energy Green IT

Economic Sustainability

Environmental Sustainability

Social Sustainability

Green Mfg., Supply Chain & Transport Mgt.

CarbonMgt.

Renewable/Distributed

EnergyGreen Data Center, desktops & e-Waste

EHS compliance

SocialAcctg.

Community & NGO Outreach

IT Asset Recycling &Reverse Logistics

OtherCSR

Env. Mgt. Systems – ISO 14001

* Includes Political Sustainability

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Global Green IT Survey

BrazilChinaFranceGermanyIndiaJapanMexicoSpainUnited KingdomUnites States

Regional Roll-up: U.S. - 300, Latin America - 300, Europe - 468,Asia - 321, Japan - 150: Total = 1,572

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0 10 20 30 40 50 60 70 80 90

Customer Pressure

Government Regulation

Growth In ServerInfrastructure

Reputation / BrandRecognition

Cost Of Energy

2008

The Most Pressing Reasons For Adopting Green ( Customers) The Most Pressing Reasons For Adopting Green ( Customers)

Source: IDC’s U.S. Green IT Survey, September 2008, n = 300

What Are The Most Pressing Reasons Impacting Your Company’s Adoption of Green IT

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0 20 40 60 80 100

Carbon neutrality through reduction and offsetting

Increase use of renewable and/or alternative energysources (including wind, solar)

Water conservation, treatment, and reuse

Improve efficiency of transportation and distribution

Requiring suppliers/procurement departments to follow"Green" policies

Green hardware disposition and recycling

Monitoring or reducing energy use/power consumption

2008

What Is The Status Of Each Of The Following Environmental Programs What Is The Status Of Each Of The Following Environmental Programs

Source: IDC’s U.S. Green IT Survey, September, 2008

CIOs Are Now More Involved In Environment-related Projects

Water Management: For Each KW/H of Electricity Produced, 2 Gallons Of Water Are Consumed

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0 20 40 60 80 100

Sourcing IT From TheCLOUD

Webconferencing, etc

Virtualization

Monitoring SW for EnergyConsumption

More Efficient IT Devices

2008

2009 Green IT & Sustainability Priorities2009 Green IT & Sustainability Priorities

Source: IDC’s U.S. Green IT Survey, September 2008

Q24 Please rate the role of the following IT products and services will play in your organization's efforts to reduce its environmental impact over the next several years?

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Working With IDC Customers : Media Company Case Study

Each Business Unit Is– Building Internal Energy

Teams– Incorporating Energy

Thinking Into Existing Processes

– Focus on ‘Low Hanging Fruit’ &

– Bold Initiatives

Near Term Focus

Current Carbon Footprint626K Tons CO2 Per Year

Energy Reduction

RenewableSources

Business Unit LeadEfforts

CarbonOffsets

2010 Carbon Footprint = 0

As A Last Resort

Other

Transport ation

Electricity

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Green Solution Projects: Media CompanyPriority Solution

Proven Tech. And

Already In Advance Plan

PromisingSolution

StrongBusiness Case But Use NewTechnology

Tabled Solution

Business Case Is

Not StrongEnough Or

TechNot Mature

Desktop Computer Power Mgmt

Off Hour Desktop Mgmt

Desktop Monitor Power Mgmt

Hardware Disposal Program

Printer Standby

Energy Star 4.0 Compliance Desktop

LCD Monitor Replacement

Blade Server Architecture

Windows Server Virtualization

Shared Web Server

Double Sided Printing

MFP Devices

Paperless Meetings

Work From Home

Desktop Video Conferencing

SAN Storage RAID Reconfig

SAN Virtualization

Backup Consolidation

Storage Right Tiering

80 Plus Power Supply

Data Center Dynamic Thermal Mgmt

Storage Thin Provisioning

Data Center Rack Flexible Barriers

Thin Client Desktop

VPN

Soft Phone

Unified Communication

Remote Meeting Room

Wireless Networked Conf. Rooms

High Def. Video Conferences

Tele-presence Video Conferences

Tablet PCs

I.L.M.

Alternate Cooling

Metered Power

Walled Outlet Power Consumption Mgmt.

OpportunitiesServer Hardware

Desktop Hardware

Printing

Server Sprawl

SAN Storage Util.

Desktop Power Mgt

Data Center Temp

Office Equip.

Telecommunting

Business Travel

Data Center Power

Cost Effective D.R.

Storage Media Opps

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Priority Solution

Proven Tech. And

Already In Advance Plan

PromisingSolution

StrongBusiness

Case But Use NewTechnology

Tabled Solution

Business Case Is

Not StrongEnough Or

TechNot Mature

Steering committee prioritizes based on Quality of Service, Cost Avoidance, and Energy Avoidance

Opportunities

Server Hardware

Desktop Hardware

Printing

Server Sprawl

SAN Storage Util.

Desktop Power Mgt

Data Center Temp

Office Equip.

Telecommunting

Business Travel

Data Center Power

Cost Effective D.R.

Storage Media Opps

Desktop Computer Power Mgmt

Off Hour Desktop Mgmt

Desktop Monitor Power Mgmt

Hardware Disposal Program

Printer Standby

Energy Star 4.0 Compliance Desktop

LCD Monitor Replacement

Blade Server Architecture

Windows Server Virtualization

Shared Web Server

Double Sided Printing

MFP Devices

Paperless Meetings

Work From Home

Desktop Video Conferencing

SAN Storage RAID Reconfig

SAN Virtualization

Backup Consolidation

Storage Right Tiering

80 Plus Power Supply

Data Center Dynamic Thermal Mgmt

Storage Thin Provisioning

Data Center Rack Flexible Barriers

Thin Client Desktop

VPN

Soft Phone

Unified Communication

Remote Meeting Room

Wireless Networked Conf. Rooms

High Def. Video Conferences

Tele-presence Video Conferences

Tablet PCs

I.L.M.

Alternate Cooling

Metered Power

Walled Outlet Power Consumption Mgmt.

Green Solution Projects: Media Company

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Business Value of Green Across Four Inter-related Domains

Performance per Unit of Power

– Power management, distribution

– Memory and Disk tuning

– Virtualization / Centralization

– Battery Architecture

– After Asset Life Recovery

Client Computing

– U. C

– Virtual Training

– Low Carbon, Travel Collaboration

– Video /Telepresence

– Supply Chain Integration

Communications

Data Centers

Power and workload management

– Virtualization / Consolidation

– Rack / room layout

– Cooling delivery

– Storage – thin provisioning and deduplication

Printers – Power savings

– Paper savings

– Ink and solvent savings

– Eco friendly sourcing

– Eco friendly disposal and recycling

Integrated Impact

BVoG: Green ITSustainability

Quality Of ServiceCost AvoidanceCarbon Avoidance

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IT Is Ready To Explore Renewable Energy Sources ( Solar 34%, Hydro-electric 29%, Wind 18% )

Despite The Economy, 30% Of EnterprisesWill Increase Green Datacenter Spending

65% Believe Green Datacenters Will Cost More, But Worth It

Datacenter Green IT Trends

Energy Costs

33% Of Data Center Energy Consumed Is Wasted By AC to DC Conversion50% Of A Typical Data Center Is Spent On Power & Cooling Components

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Green Solution Projects : Media Company Carbon Avoidance Server Virtualization Goals

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536

36 Month Project

CO

2 A

void

ance

Exceeded Total CO2 Goals Two Years Ahead of Schedule

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Energy Cost Avoidance ( Power & Cooling) Through Virtualization

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

20052006200720082009201020112012

$M

0%

10%

20%

30%

40%

50%

60%

70%

Power and Cooling Avoidance % Saving

“What if" all the virtualized logical servers were deployed as physical servers

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The Cost To Manage Virtualization(US$B) Worldwide IT Spending on Servers, Power and

Cooling, and Management/Administration

$0$25,000$50,000$75,000

$100,000$125,000$150,000$175,000$200,000$225,000$250,000$275,000$300,000$325,000

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

Power & Cooling

Mgmt & Administration – Standalone Servers

New Server SpendingMgmt & Administration – Virtualized Servers

Spending ($M)

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IT Asset Lifecycle : Government Intervention

“The directive imposes the responsibility for the disposal of waste electrical and electronic equipment on the manufacturers of such equipment ..”

The Waste Electrical and Electronic Equipment Directive (WEEE Directive)

Draft legislation would give money to e-waste research (12 February, 2009 )

“..would include grant money for universities to conduct research on improving sorting and "de-manufacturing" technologies, on new uses for e-waste materials, new electronics designs that would make recycling easier and greener alternatives to hazardous materials..”

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E-Waste: The Dirty Secret of Recycling Electronics

The Need Of Standards For Asset DisposalThe Need Of Standards For Asset Disposal

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0 10 20 30 40 50 60 70

Other

Store Them

Trash

Return To Mfgtg/Leasing Co.

Remarket/ Resell

Employ 3rd Party Asset Disposal

Donations, NGOs, Employees

2008

Standards For Asset Disposal?Standards For Asset Disposal?

Source: IDC’s U.S. Green IT Survey, September 2008, n = 300

How do you currently dispose of your retired hardware assets?

Government Intervention In Some Markets Will Drive Longer Asset Life Cycles and Change Financing Decisions

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• Less than 10% of the most relevant players generate more than $50 million

• About 25% get have revenues between $1 million-$5 million

• Almost 40% have sub- $1 million revenues

The Size of IT Asset Disposal CompaniesThe Size of IT Asset Disposal Companies

How do you currently dispose of your retired hardware assets?

N=113 U.S.-based ITAD companies surveyed Oct/Nov 2008

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Green IT & SustainabilityGreen IT & Sustainability

Remote/Web apps

Making The IDC GRADE: IT Asset DisposalMaking The IDC GRADE: IT Asset DisposalMaking The IDC GRADE: IT Asset DisposalMaking The IDC GRADE: IT Asset DisposalGreen Recycling and Asset Disposal for the Enterprise

– Web-based query tool

– Online documentation

Onsite Services End-to-End Chain of Custody

Offsite Asset Processing Post-Processing

– Asset inventory management

– Redeployment/ cascading services

– Data cleansing– Etc.

– Logistics– General

handling– Transport

security– Insurance– Etc.

– Data cleansing– Product inspection

and testing– Receipt reporting– Asset tag removal– Inventory

settlement reporting

– Refurbishing– Parts harvesting– Recycling

– Remarketing– Reporting

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Green IT & Sustainability Services Opportunity

Source: IDC's Green IT Corporate Survey, October 2008

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Green IT & Sustainability ServicesPlanning:

•Define sustainability strategy, goals, metrics & data requirements•Define energy, raw materials & waste management strategies•Assess sustainability, benchmark others•Plan for biodiversity•Site-level sustainability services (building & systems design)•Define carbon management strategy•Liaise with external organizations/stakeholders

Implementation:•Organizational change effort related to sustainability•ERM or SCM systems (for more effective use of natural resources)•Power management/ measuring/monitoring systems•Corporate Social Responsibility or social accounting systems•Tracking databases•Manufacturing, supply chain and transportation best practices

Training:•Environmental, Health & Safety (EHS) reporting•Sustainability reporting (economic, environmental or social)•Efficient use of natural resources / biodiversity

Support:•Packaged applications support for supply chain management•Packaged applications support for transportation management•Packaged applications support for measure/monitor energy or CO2•Packaged applications support for carbon trading/credits

Manage/Operate (on behalf of client):•Identify enterprise risk management issues related to sustainability•Accounting of energy usage or carbon credits & settlements•Evaluate suppliers credentials/offerings related to sustainability•IT product / infrastructure lifecycle management•Measure/monitor energy or CO2 on behalf of clients•Hosting ERM or SCM systems (for more effective use of natural resources)•Environmental Health & Safety monitoring/reporting (incl. voluntary)•Carbon trading / emissions reporting & analysis•Telecommuting/videoconferencing•IT asset disposal/recycling & reverse logistics•Selection of alternative energy systems/sources•Brand or reputation management related to sustainabilityT t ti t

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Essential Guidance

Compliance Will Drive Stimulate New OpportunitiesSustainability Analytics Will Become The New ICT Hot SpotThe CIO Will Demand Vendors Show The Business Value Of Green The Network Will Become The Green IT ‘High Ground’ On The Competitive Landscape

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Contact Information

Please email me atvturner@idc.comPlease fill out your Directions Evaluation formPlease have your badge scanned to receive follow-up information