Transcript Will Virtualization Pay Off for Your Enterprise?

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
© 2008 Jupitermedia Corporation
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Main Presentation
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Agenda
• Supporting the Organization’s Green Strategy
• Potential Risks
• Data Centers and Electricity
• The Green IT Process
• Management Opportunities
• Technical Opportunities
• Continuous Improvement
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Supporting the Organization’s Green Strategy
• The environment and being “green” is an
organizational issue
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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
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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
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Green Data Center Electrical Demand
Management Benefits
Cost Savings
Intense Pressure
Brand
Reputation
Regulatory
Compliance
-Customers
- Investors
-Employees
Protecting the
Environment
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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
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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
1.
2.
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/
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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
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Understanding Electrical Costs
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Servers can be utilized as little as 6% on average1
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Data centers can run at 56% of peak performance1
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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
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One watt of IT power used requires about one watt of cooling
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What about your bill? Do you know what it is for IT?
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Cost = (Watts x Hours Used) / 1000 x Cost/KW Hr
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Problem is that that there are inefficiencies
http://bits.blogs.nytimes.com/2008/05/01/data-centers-are-becoming-big-polluters-study-finds/
© 2008 Jupitermedia Corporation
Power Consumption
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Chiller
IT Equipment
UPS
Computer Room Air
Conditioning (CRAC)
Power Distribution
Units (PDUs)
Humidifiers
Switch / generator
Lighting
33%
30%
18%
9%
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
5%
3%
1%
1%
24% goes to power
http://www.thegreengrid.org/gg_content/Green_Grid_Guidelines_WP.pdf
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Where to Begin
The Green IT Process
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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.”
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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
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Green IT Architecture and Standards Mgt
• Need to establish and enforce standards
• Work with
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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
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Green IT Functional Area Objective Mgt
• Need to ensure that
various IT areas have
objectives that align
with:
Manufacturing
IT
Organization’s
Green
Goals
– Green IT Objectives
– Organization’s Green
Strategy
Sales
Logistics
• Alignment
– Initially
– Ongoing
Network
Servers
• Scheduled Review
• After Major Change
© 2008 Jupitermedia Corporation
Green IT
Objectives
Facilities
Storage
Green IT Assessments
• Continuous process
improvement
• Need to understand
Act
Plan
Check
Do
current state
• Identify ideal states
• Gaps / opportunities
for Improvement
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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
© 2008 Jupitermedia Corporation
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
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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
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Management Opportunities
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Management Opportunities (1)
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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
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Avail of government initiatives
– Department of Energy
– Environmental Protection Agency
– State and Local governments (tax credits, bonds, etc.)
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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
© 2008 Jupitermedia Corporation
Management Opportunities (2)
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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
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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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
Technical Opportunities (1)
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Consolidate Applications
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Do you really need 20 different financial packages?
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Can you reduce the servers and storage?
Identify and Remove Ghosts
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1 Watt IT Equipment Saved Reduces Cooling 1 Watt
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20-30% of servers may no longer be generating value but till incurring operating expenses1
Savings on IT equipment can be a 2-for-1 or even greater
Newer is Typically Better
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Some cultures “run until things break”
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Some systems are 10-20 years old
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Newer has more efficient components, better power management, etc.
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Fairly true across the board:
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Servers – Can have dramatic savings considering low average computational utilization to begin with
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Desktops – Reductions of over 50%
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UPSes – reduction of power loss of up to 70% over 15 year old systems1
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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-ciocx_kgb_0630goog.html
2 The Green Data Center: Steps for the Journey. http://www.redbooks.ibm.com/abstracts/redp4413.html
© 2008 Jupitermedia Corporation
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.
© 2008 Jupitermedia Corporation
Technical Opportunities (3)
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Pursue Modular Design Approaches
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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
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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
© 2008 Jupitermedia Corporation
Technical Opportunities (4)
• Monitor Power Use
– Monitor power to the rack level if possible
– Track and trend over time
• Distributed Generation / On-site Generation
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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
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Hydroelectric
Solar power
Wind Turbines
More options are appearing weekly!
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
Where do we want to be?
Vision and Objectives
Where are we now?
Audits / Assessments
How do we get to where
we want to be?
Process Improvement
(Leverage Best Practices)
How do we monitor
Progress?
Metrics and Critical
Success Factors
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
© 2008 Jupitermedia Corporation
Resources (1)
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The News - Archive, RSS and Email Subscription Instructions
http://www.spaffordconsulting.com/dailynews.html
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George’s Green IT Resource Page
http://www.spaffordconsulting.com/GreenITResources.html
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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
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Uptime Institute
http://www.uptimeinstitute.org/
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US Department of Energy – Energy Efficiency and Renewable Energy
http://www1.eere.energy.gov/industry/saveenergynow/partnering_data_centers.html
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DOE – Creating Energy Efficient Data Centers
http://www1.eere.energy.gov/industry/saveenergynow/pdfs/doe_data_centers_presentation.pdf
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American Society of Heating, Refrigeration and Air-Conditioning Engineers – Technical
Committee 9.9
http://tc99.ashraetcs.org/
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The Data Center Journal
http://datacenterjournal.com/
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The Green Grid
http://www.thegreengrid.org
© 2008 Jupitermedia Corporation
Resources (2)
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Simon Mingay. “10 Key Elements of a ‘Green IT’ Strategy”. Gartner. December 2007.
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Energy Information Administration. Electric Power Monthly
http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
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National Data Center Energy Efficiency Information Program
http://www1.eere.energy.gov/industry/saveenergynow/pdfs/national_data_center_fact_sheet.pdf
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Lawrence Berkeley National Labs – Data Center Best Practices
http://hightech.lbl.gov/datacenters.html
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Kenneth G Brill. “Data Center Energy Efficiency and Productivity”. The Uptime Institute. 2007.
http://www.cio.co.uk/whitepapers/index.cfm?whitepaperid=4241
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Cogeneration & On-site Power Production
http://www.cospp.com
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US Department of Energy – Distributed Energy Program
http://www.eere.energy.gov/de/
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Chena Hot Springs Geothermal Project
http://www.yourownpower.com/
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State of California – Distributed Energy Resource Guide
http://www.energy.ca.gov/distgen/index.html
© 2008 Jupitermedia Corporation
Thank you for the privilege of facilitating this webcast
George Spafford
[email protected]
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)
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