Transcript Responsibility - Dec 07

Responsibility2
TM
An Efficient IT Strategy
Key Programme Overview
December 2007
Your company needs you….
The Facts: Rising energy and carbon costs to UK plc
 UK energy costs rising year on year
 UK energy costs have risen 266% since the winter of 2002
 European emissions trading legislation proved a major
cost to UK organisations in 2005 and is expected to grow
 £1.7 billion spent on trading vouchers in 2005/06
 Carbon Reduction Commitment (CRC) is a mandatory
auction-based emissions trading scheme for non-energy
intensive business and public sectors
 Reductions of 1.1 million tonnes of carbon per year by 2020
Why should IT be involved?
 Capacity under pressure
 Energy costs are expected to grow from 10% to 30% of IT
budget
 Rapid growth in technology (storage, servers, data)
IT innovation could make a big difference to
overall environmental impact and can enable
organisational behaviour change
IT and global energy consumption
Aviation is responsible for some 2-3% of
man-made carbon dioxide emissions
IT now generates 2% of global carbon emissions
Gartner Symposium/ITxpo 2007
IT versus Airline efficiency
Average server utilisation 13 per cent
Intel 2007
Easyjet sell on average 85% of seats on higher density planes
EasyJet high efficiency = lower emissions = low fares
An expanding Digital Universe
Information that is either created or captured in
digital form and then replicated in 2006 – is 161
exabytes, growing to 988 exabytes in 2010,
representing a compound annual growth rate
(CAGR) of 57% - IDC 2007
The global airline industry shows no sign
of reducing its activities; with a 5%
increase in the number of flights
scheduled for May 2007
OAG 2007
Does Green IT really exist?
Logicalis believes the phrase ‘Green IT’ reflects a strategic
imperative for ensuring the maximum efficiency of every IT
deployment, and using IT to influence the efficiency of people
and other business resources.
Green IT = Efficient IT
(That’s what the CFO is going to be looking at)
Why it’s not naive to be GREEN
Competitiveness
 Process Costs
 Overhead Costs
Economic Pressures
 Operational Expenditure
 Real Estate
 Transport and travel
 Energy
 IT Systems
 Capital Expenditure
 Projects
 Purchases
Environmental Impact
 Culture
 Consumption
 Legislation
 Co2 ratings
Operate vs. Innovate
The IT Director Challenge
Innovate
10%
15%
Technology innovation
creates the challenge of
continued skills change
and complex integration
85%
90%
Operate
Capacity
Technology expansion
complexity and pressures on
physical space, energy/cooling
cost and capacity
Technology complexity
creates increased pressure
on cost of ownership and
time-to-change
The Efficiency Cycle of Opportunities
Organisational Efficiencies
Cultural Efficiencies
Real-time communication
Remote working practices
Increased real-estate utilisation
Collaborative working platforms
Reduced environmental wastage
Virtual meeting capabilities
Business
Efficiency
Framework
Process Efficiencies
Real-time workflow
ICT Efficiencies
Process Automation
Operational simplification
Enterprise Search
Increased resource utilisation
Real-time business intelligence
Energy consumption reduction
Reduced Operational Costs
The Inefficient Truth

86% of ICT professionals do not
know the carbon footprint of their
department’s activities

50% have never been asked to focus
on energy efficiency as a part of an
organisation-wide initiative

Only 1% of professionals considered
vendor environmental information to
be excellent whilst 60% said it was
poor or confusing

94% of organisations do not provide
incentives to the ICT department to
act in an environmentally friendly
way

66% of the departments have
already filled over 75% of the
physical floor space of DC

61% expect to reach storage
capacity within 24 months
IT as a Strategic Supply Chain
Can you SCOR Your IT Delivery?
Delivery
Reliability
at the correct time, at the perfect
quantity?
Asset Management
How effectively you manage assets to
cope with demand
Responsiveness
how quickly the supply chain delivers
Cost
Flexibility
Costs associated with operating the
supply chain
How quickly the supply chain responds
to change
SCOR: Supply Chain Operations Reference Model
Copyright: PRTM
IT as a Strategic Supply Chain
Strategies for Change
Fix what isn’t working before focussing on the next-generation solutions
 Understand what eats up most of your costs
 Processing / Storage growth?
 Operational complexity?
 Supplier sprawl?
Connect IT with the business and re-balance supply and demand
 Understand how IT can help drive the business
 Ensure core platforms are able to efficiently meet demand
Look beyond the technology into the ‘softer’ challenges
 Data Management
 Process and Systems Automation
 Application Consolidation
Skills gap within the organisation can limit overall effectiveness
 Most suitable strategy may involve major change
Today’s IT supply chain
Complexity, Capacity and Cost
Responsibility2 TM Environmental Life Cycle
Educate
Audit
Optimise
 Every product is now a shade of
green
 The Environmental Life Cycle
looks at the ‘total environmental
impact’
 Product Energy Efficiency
 Operational Best Practice
 Business process benefits
 Disposal
 A storage system 1% more
efficient than a competitor, but
storing rubbish, is not efficient!
Monitor
Report
Responsibility2
TM
Environmental Life Cycle
Responsibility2 TM from Logicalis outlines a 5-stage best-practice
sustainability programme for environmental efficiency
Educate
Audit
Optimise
Monitor
Report
Provide education to
IT as to the impact of
energy use in terms
of CO2 and cost
Identify key IT energy
consumers, audit IT
systems utilisation
Consolidate
everything. Data
Centre, Servers,
Storage, Branches
etc.
Collect qualitative
data on green
initiatives
On-going
environmental plan
Identify IT
Environment Leader
Use proven
methodologies to
assess options e.g.
IBM Zodiac/COBRA
Focus on
environmental
operation from data
centre to the desktop
Assess actual
savings from major
consolidation projects
Efficiencies – CO2
saved, energy saved,
technology resources
saved, floor space
saved, money saved
Connect IT with
organisation wide
Environmental
Programs (14001)
Publish
environmental
efficiency targets for
IT
Assess business
processes against
potential technology
innovation (home
working etc.)
Consolidate into a
single environmental
dashboard
Communicate
Responsibility2: 10 Areas for Efficient IT
Responsibility2 sets out ten key measures that users of IT systems
can take to ensure maximum efficiency.
1.
Processor (Server) Virtualisation
2.
Storage Virtualisation & Consolidation
3.
Information Life Cycle Management (ILM)
4.
Application Consolidation
5.
Desktop Power Management & Thin Client Technology
6.
Data Centre Supporting Appliance Consolidation
7.
Branch/Remote Office Consolidation
8.
Unified Communications and Video Collaboration
9.
Shared Service Buildings
10.
Digital Forms
System z – The Invisible Hulk?
"We're up against the wall on floor
space, and, therefore, power
management. We have a strict
one-in, one-out policy. No new
server comes in without an old
server coming out - except on our
z/Series [plus] z/VM [plus]
Linux environment. If people
want services I can deliver on
Linux, it's about an hour and they
have a server.“
Jim Meine, Minnesota
County Government
Industry’s first real-time environmental dashboard
Enabling unequivocal demonstration of tangible CO2, and energy
savings realised from energy efficient IT solutions and
programmes.
Value of going ‘Efficient’

The CIO and IT department must adopt a responsible position
 Cutting emissions and energy use
 Improving the efficiency of IT deployment

The CIO should promote this strategy to the business
 IT as a positive carbon use change agent
 An organisation that promotes responsible IT use

The CIO and IT department should demonstrate savings to the
business in terms of energy saving and cost saving
 Market and PR their vision to the business, customers and markets

The CIO and IT department must demonstrate leadership and
vision
Thank you