Transcript Will Virtualization Pay Off for Your Enterprise?

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
© 2008 Jupitermedia Corporation
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Main Presentation
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Agenda
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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
© 2008 Jupitermedia Corporation
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
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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
© 2008 Jupitermedia Corporation
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
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Damage to the Brand
Threat of Increased Regulation
IT Unable to Support the Business
Competition Solving Issues First
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Primary Issue – Energy and Information
Technologies
IT needs electricity to operate!
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Energy and Economics (1)
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Simple Supply and Demand
Demand world-wide is increasing
– 50% by 2030
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As demand increases, so do prices
Equilibrium at Q0,P0
Jevon’s Paradox
pp
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http://www.iht.com/articles/2008/06/25/business/25energy.php
http://www.bloomberg.com/energy/
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P0
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– As technology improved, rather than
fall, consumption increased due to a
drop in prices
– My take - The lower the cost, the more
we waste
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Price
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– Oil cost $113 to $1861
– Oil was $142/bbl on 7/1/082
– Ceteris Paribus
Quantity
Q2
Q0
Q1
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http://www.usatoday.com/money/industries/energy/2008-06-15-power-prices-rising_N.htm
Q1
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Quantity
So … what does this do to operating
budgets?
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Fires half of US power plants
Coal has doubled in last year
Result – Electricity costs have increased
29%1
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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
Price
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Energy and Economics (2)
Electricity and the Environment
• Obviously, IT runs on electricity
• Demands are increasing
• Produced in large scale predominantly via
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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
© 2008 Jupitermedia Corporation
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
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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/
© 2008 Jupitermedia Corporation
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
1.
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
© 2008 Jupitermedia Corporation
Where to Begin
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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
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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
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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
© 2008 Jupitermedia Corporation
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
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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?
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
Technical Opportunities (2)
• Old Desktop
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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
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
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.
© 2008 Jupitermedia Corporation
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
© 2008 Jupitermedia Corporation
Technical Opportunities (6)
• 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
• Hydroelectric
• Solar power
• Wind Turbines
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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
Vik Chandra
Program Director - IBM Software Group Green
Market Management
© 2008 Jupitermedia Corporation
Software Enabled Opportunities for Energy Efficiency
Reduce commuting with
online collaboration and
increasing work from home
Comply with environmental
regulatory requirements
Reduce business travel by
using online collaboration
People
Reduce use of paper by
enabling business processes
to use eForms and images
Optimize business processes
to reduce energy footprint
and costs of operations
Schedule execution of
workload to off-peak hours to
use lower cost energy
Workloads
Turn the power down when
work (transactions) slows
down
Compress your data to lower
storage and server needs
© 2008 Jupitermedia Corporation
Shift workloads to
underutilized servers to
reduce energy and floor
space needs
Optimize applications to
reduce needed IT resources
and energy
Consolidate and Virtualize to
eliminate floor space and
compute infrastructure
Infrastructure
Optimize HVAC for hot spots
to reduce energy
consumption
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
© 2008 Jupitermedia Corporation
Resources (1)
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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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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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Creating the Green Data Center
http://www.adc.com
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The Data Center Journal
http://datacenterjournal.com/
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The Green Grid
http://www.thegreengrid.org
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Uptime Institute
http://www.uptimeinstitute.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
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Questions?
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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
© 2008 Jupitermedia Corporation
Thank you for attending
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