GreenIT Final Mar.4

8/8/2019 GreenIT Final Mar.4

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INFO-TECH RESEARCH GROUPGREEN IT: WHy MId-SIzE COMPANIES ARE INvESTING NOW

Enironmental issues are receiing unpreceente attention from businesses an

goernments aroun the worl.

In a special 2005 aress to the Worl Economic Forum in daos, then-Prime Minister of

the Unite Kingom, Ton Blair, argue that the weight of eience is such that swift actionmust be taken to aress global warming. This comment came alongsie a marke shift in

enironmental ialogue across societies an in business leaership circles.

In Januar 2009, former US vice Presient Al Gore urge Congress to take ecisie action,

”reerse ears of inaction,” an assume leaership in the preparations of a new, global

climate treat, which is critical for success at the Copenhagen UN climate summit in

december 2009. At this summit, it is wiel expecte that inustrialie nations will agree on

a more comprehensie, actionable climate agreement to succee the Koto Protocol.

As concern for climate change an sustainabilit continues to grow, an actions now ramp up,

businesses are grappling with reducing carbon footprints while remaining protable.

Feeling pressure from customers an other stakeholers, organiations hae begun to make

serious improements in their enironmental performance, recogniing that if the fail to

deliver on this, it frequently translates into a negative impact on prot.

Man goernments are introucing aggressie enironmental polic, encompassing eerthing

from greenhouse gas reuction an natural resource protection to clean power initiaties an

incentives for energy efciency.

Moreoer, in 2009, businesses feel the negatie impact of our economic climate. Senior

leaders – in the corporate ofce and in IT – are surveying their businesses for readily

achievable cost savings to make up for tightened budgets and prot margins. IT departments,

haing run lean in the past, are on the hunt for new initiaties that reuce costs without

compromising business alue.

Many businesses have discovered that Green IT initiatives offer costs savings benets

while reforming the organiation, meeting stakeholer emans an compling with laws

and regulations. In this study, IBM and Info-Tech Research Group nd that businesses who

complete Green IT initiatives realize signicant cost savings alongside superior

enironmental performance.

Introduction

Page 1

This paper presents the results of a stu conucte b Info- Tech Research

Group an sponsore b IBM. More than 1,000 IT professionals in mi-

sie businesses, from 12 countries an eight inustries, were consulte

through sures an interiews to unerstan wh Green IT initiaties are

unertaken, an how the results translate into cost saings, business alue

and environmental benets.




Businesses aroun the worl are realiing that aressing enironmental concerns can

also benet the bottom line. They aren’t jumping on the bandwagon in an effort to save the

planet, though this sentiment is certainl expresse in man cases. Rather, businesses see an

opportunit: B aopting initiaties that hae a positie effect on the enironment, the sae

money, and at the same time, use technology more efciently. Great opportunities lie in the ITepartment, where reucing the enironmental footprint of technolog is now top of min for man

IT leaers.

This paper examines the impact an aoption rates of 11 Green IT initiaties in mi-sie

organiations aroun the worl: serer irtualiation an consoliation, storage consoliation,

esktop irtualiation, existing serer room upgraes, new serer room buils, IT energ

measurement, PC power management, printer consoliation, remote conferencing,

telecommuting an IT equipment reccling. The most popular initiaties being aopte toa

are storage consolidation, remote conferencing and telecommuting projects, all of which yield

immediate cost reduction benets along with a reduced environmental footprint.

In the future, we see signicant interest in initiatives such as server virtualization and storage

consoliation. About 25% of mi-sie businesses hae alrea complete some form of

irtualiation or storage consoliation; another 50% are planning these for the next 12 months.This growth in adoption speaks to the benets offered by server virtualization and storage

consolidation: cost-efciency, ease of management and reduction in energy use.

Controlling cost is the strongest factor riing all 11 initiaties. Uner the cost-saings

umbrella, four main benets rise to the top: decreased electricity use, decreased consumables

use, ecrease future operational expenses or inestments an realiing creits or rebates from

local utilities and governments. Two additional benets were also cited as key considerations by

many businesses: the ability to better meet customers’ demands and increased features and

functionalit for the business.

Companies thinking about implementing a Green IT project should consider that the

majority of implementations are considered successful. In 65% of all Green IT projects,

organizations’ initial goals for these projects are met or exceeded. In other words, businesses

typically accomplish what they set out to do, and realize additional benets they weren’t expecting.

This paper highlights the success businesses are experiencing in reucing costs an

environmental impact through Green IT, and features proles of leading-edge, mid-size

organiations that are ahea of the cure.

Green IT:

A Working Denition

Green IT is comprise of initiaties

an strategies that reuce theenironmental footprint of technolog.

This arises from reuctions in energ

use an consumables, incluing

harware, electricit, fuel an paper

– among others. Because of these

reuctions, Green IT initiaties also

prouce cost saings in energ

use, purchases, management an

support, in aition to enironmental

benets. Beyond cost savings and

environmental benets, some

initiaties ma aress stakeholer

an regulator nees an emans.

For example, serer irtualiation

allows businesses to reuce

the capital cost of future serer

purchases, an the operational

costs of energ, maintenance an

management. Electricit footprints

an the amount of equipment neeing

future reccling are simultaneousl

reuce, an often, the business

realies incenties or rebates for

saing energ from local utilities

or goernments.

Executive Summary

Stu Methoolog

This stu was commissione b IBM an conucte b Info-Tech Research Group. 1,047 IT an business professionals an ecision-makers

from companies with 100 to 1000 emploees, representing 12 countries an eight inustries, participate in an online sure between

december 2008 an Januar 2009. In aition, a group of 20 responents participate in 40-minute in-epth interiews. In both sures

and interviews, respondents were asked to describe their adoption state across 11 Green IT initiatives, as well as their organizations’ outlook,

attitues, an reasons for aoption. The also answere questions about the state of enironmental issues an action in their business an

their region of the worl. Please refer to the pie charts for a etaile breakown of responents.

500 - 1000

employees

36%

250 - 500

employees

34%

100 - 250

employees

30%

United States

32%

United

Kingdom

10%

India

10%

Japan

10%

France

8%

Germany

8%

Brazil

10%

Nordic

Countries

5%Canada

8%Industrial

25%

Banking

11%Wholesale

11%

Electronics

10%

Insurance

7%

M edia &

Entert ainment

7%

Utilities

7%

Telecom

7%

Retail

15%

Page 3




Part I:Progress in Green IT

Green IT Adoption Trends: An OverviewThis report divides 11 Green IT initiatives into four major groups: Virtualization and Consolidation, Energy Efciency, Travel Reduction

an Asset disposal.

Virtualization & Consolidation: Initiaties in this area inclue serer irtualiation an consoliation, storage consoliation an esktop

virtualization. These projects typically improve cost and energy efciency through optimized use of existing and new computing and storage

capacit, electricit, cooling, entilation an real estate.

Energy Efciency: Initiaties in this area inclue serer room upgraes an new buils, IT energ measurement, printer consoliation, an PC

power management. These projects have energy efciency or reduction as a major cost savings benets.

Travel Reduction: Initiatives in this area include remote conferencing & collaboration and telecommuting. These projects are typicallyassociate with reuctions in trael, fuel an commuting costs.

Asset Disposal: IT equipment reccling is the lone initiatie in this categor.

Half the companies who participate in this stu are either piloting or implementing at least one of the 11 Green IT initiaties. B an large,

the most commonly adopted initiatives involve major cost savings up-front, with fewer major investments required. The most popular initiatives

across the board include storage consolidation, remote conferencing and telecommuting, all of which yield immediate cost reduction benets

to the business if implemente correctl.

Initiaties allowing the business to realie long-term, operational cost saings garner less attention toa, but organiations will be looking

closely at these types of projects in the coming months. New server room builds, desktop virtualization and IT energy measurement all saw

a lower rate of adoption, but businesses expressed signicant interest in these for the coming year. In fact, around one-quarter of all IT

epartments plan to aopt one or more of these initiaties in the next 12 months. IT energ measurement is a particularl important initiatie

since its data quanties the true cost of energy used by IT, and allows management to determine which parts of IT’s infrastructure should beoptimie next. One danish IT manager, who recentl aopte energ metering for the serer room, explains, “We can install [meters] to track

usage and make efciency gains now and in the long run.”

The benets of some of the lesser-adopted initiatives are not well understood by respondents in this study. However, as organizations begin

to understand the complete roster of cost-savings benets associated with these initiatives, adoption will increase. New server room builds,

telecommuting an IT energ measurement – are rate among the most successful initiaties oerall. This again emphasies that there are

appreciable saings to be realie through Green IT initiaties.

52%48%

44%48%

40%

48%

53%57%

52% 51%56%

37% 39% 36%42% 38% 35% 34% 31%

36% 33% 32%

0%

10%

20%

30%

40%

50%

60%

S t o r a g

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d a t i o

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Adopt ed Planned

Over 80% of companies have already adopted or are planning to adopt Green IT initiatives in the near future

Page 4

One mi-sie British an North

American retailer locate its new

serer room in a sustainable, mixe-

use builing, an irtualie two fullracks to a single, half-full blae rack,

cutting their require space in half.

The rm now heats living and ofce

space using serer room air.




Businesses Look to Green IT for Business Benets & Cost ReductionGreen IT initiatives present IT with opportunities to reduce carbon footprints and costs. However, there is a ne balance

between adoption due to a genuine concern for the environment versus gaining business, cost and public relations benets.

In this study, almost all initiatives were driven approximately 60% by business reasons and 40% by environmental reasons.

This echoes the sentiments of one CTO at a Canaian electronics manufacturer: “Rising costs of fuel an

electricity furthers the business case, so even if it wasn’t a green initiative, the business case is there. So,

it’s not that we’re tree huggers, but we’re interested in saving money, as well as consumption

an emissions.”

This 60/40 split plays out before and after implementation. However, as organizations learn, during

implementation, about the positie enironmental impact these initiaties hae, the importance of

environmental benets increases somewhat. Indeed, initiatives not originally implemented for

environmental benets are now recognized as ones that have a positive effect on both the bottom line andcarbon footprints. This is particularl true in trael reuction an irtualiation & consoliation, where the

environmental importance of implementation increased most signicantly after implementation. As one VP

of IT at an international investment rm expresses, “Cost cutting is important to every organization, let’s be

real, but [our] philosoph as an organiation is that we lie in this worl an we want to be goo neighbors.

With our new inestments, we are oing both.”

Most mi-sie businesses require a positie return on inestment to unertake Green IT initiaties. Onl 20% of responents, comprising

Green Aocates, a group etaile in the Green IT Personalities section, place equal emphasis on business an enironmental riers.

Green IT ma be an Urgent Priorit if Buget Cuts or Compliance are Require

There are factors beyond the control of IT that create a sense of urgency in Green IT. In today’s current economic climate, the primary driver

for the majority of IT initiatives will be the ability to provide a solid return to the business. However, businesses should understand that

“greening’”is possible while making a solid ROI. Although factors affecting the urgency to implement differ for each initiative, three additionalriers are seen in this stu: reucing costs ue to buget cuts, reucing consumption ue to resource restrictions an compling with local laws.

Factors driing Implementation

Six key benets come up when respondents explain why they adopt Green IT initiatives. In order of popularity, they are: decreased

electricit use, ecrease consumables use, increase features an functionalit for the business (e.g. a ke feature of irtualiation is

the abilit to emplo a single phsical serer in the proisioning of multiple, irtual serers), ecrease expenses or inestments, meeting

customers’ demands and realizing credits or rebates from local utilities or governments. Controlling costs is the most popular factor driving

implementation across initiaties: the abilit to ecrease use of electricit an other consumables, both of which are chosen b more than half

of responents. Interestingl, initiaties with the wiest aoption hae ecreasing electricit an consumables use as the most popular reason

for implementation. This is not surprising, since reuctions in electricit an consumables such as paper an fuel translate into immeiate

cost-saings.

Over 60% of companies successfully realize benefits from Green IT

57% 57% 53% 51% 49% 44%

64% 66% 68%59%

68% 65%

0%

10%

20%

30%

40%

50%

60%

70%

Decrease electricity use Decrease consumables

use

Increase features and

functionality

Decrease other

expenses/investments

Meet customers'

demands

Realize utility /

government rebates

Very Important Implementation Driver Successfully Realized

Page 5

“Cost cutting is

important, but [our]

philosophy is that w

live in this world an

we want to be goodneighbors.”




Green IT OutcomesThere is much to learn from organiations implementing Green IT initiaties. No single piece of information, howeer, is more compelling

than the level of success organizations have seen. The benet most commonly realized by 68% of companies was the ability to increase

features an functionalit. This inclues enhancements in computing or storage capacit, an meeting emploee emans for features or

environmental action. Overall, 65% of companies successfully realized one of the major benets of Green IT – a positive sign for companies

consiering these initiaties.

The chart below displays the main benet realized by each initiative for the top four implementation drivers: decreasing energy costs,

ecreasing consumables use, increasing features an functionalit, an ecreasing other expenses or future inestments. Storage

Consolidation for example, had two main benets: the enhancement of features and functionality due to the resulting increased computing

capacit an reliabilit, an the reuction of future inestments neee for storage harware.

Regulations Aroun the Worl

Kyoto Protocol: Environmental treaty developed by the United Nations, and ratied by several countries (excluding the US who declined

ratication). Sets targets for countries to reduce greenhouse gas emissions.

Waste Electrical an Electronic Equipment (WEEE) directie introuce in 2002, an enforce in Februar 2003 for all EU member states.

Restricts the use of haarous material in electronics an promotes proper reccling.

Energy Conservation Act introduced in 2001: This was enacted by the Indian government to encourage energy efciency. The Bureau of Energy

Efciency will enforce strict policies for energy consumption and supply.

National Greenhouse an Energ Reporting Act introuce in 2007, an enforce as of Jul 2008 in Australia. This law requires all

corporations to prouce reports on their greenhouse gas emissions, an energ prouction an consumption.

MAIN BENEFIT OF INITIATIVES

DecreasedEnergy

DecreasedConsumables

IncreasedFeatures &

Functionality

Decreased Other Expenses / Future

Investments

V I R T U A L I Z A T I O N

&

C O N S O L I D A T I O N StorageConsolidation Server Virtualization &Consolidation DesktopVirtualization &Thin Clients

E N E R G Y E F F I C I E N C Y

Existing Server Room Upgrades New Server Room Build IT EnergyMeasurement PC Power Management Printer

Consolidation &Reduction

T R A V E L

R E D U C T I O N

RemoteConferencing &Collaboration TelecommuteStrategies &Capabilities

A S S E T

D I S P O S A L

IT EquipmentRecycling

Page 6

“It’s not that we’re

tree huggers, but

we’re interested in

saving money as well

as consumption and

emissions.”




Part II:Consolidation & Virtualization

Storage Consolidation & Server VirtualizationStorage consolidation and server virtualization receive considerable attention as they offer a host of benets in cost efciency and ease of

management – in aition to clear reuctions in energ use. In our stu, aroun 25% of mi-sie businesses hae alrea complete some

form of storage consoliation or irtualiation, an another 50% are planning for these initiaties within 12 months.

Businesses cite the following as most important when making

consoliation an irtualiation ecisions:

• Decrease the overall number of devices running in the server

room, along with the square footage neee to house

these eices.

• Decrease the energy required to run servers and storage, along

with the associate cost an greenhouse gas emissions.• Decrease the cost of future investments in physical servers and

storage eices. B operating serer room assets at higher

utiliation rates, man IT shops will require fewer purchases

uring future refreshes.

Another serious consieration is reucing time neee for maintenance

an management. Using serer irtualiation, IT epartments can quickl

change virtual server congurations, avoiding the time-consuming labor

require b phsical serers. Likewise, management of storage space is

simplied when data is centralized on only a few systems.

Running out of processing power

The case for consolidation and virtualization doesn’t arise solely from a

esire to reuce equipment counts, energ use an CO2 emissions. In

fact, the nee for these technologies is often the result of a

classic IT problem: The crushing eman for computing an storage in

moern, igitall rien businesses. Inee, this is the most pressing

issue spurring adoption. Up to 60% of businesses report they will run out

of processing or storage capacit within the ear.

The traitional metho of aing capacit –installing phsical serers

and hard disks – is hindered not only by sheer inefciency, but by budget

constraints an “gri issues”. The conentional moel of aing harware

doesn’t scale well for cost savings – and almost 60% of organizations

cited budget issues as a major factor for optimizing the cost of processing

data through virtualization and consolidation. The nal factor driving organiations to irtualie an consoliate is electricit capacit. Man

server rooms simply can’t handle the additional load of new

phsical equipment.

Success in storage and server virtualization projects

Companies that hae aopte storage consoliation an serer irtualiation achiee oerwhelming success. Three-quarters of organiations achiee

their No. 1 objective: to decrease the number of devices running in the server room. One Danish business services IT manager explains that, “In our

own shop, we were at a high of about 110 eices, an through irtualiation we hae that own to 58. ” The spinoff effects of this accomplishment –

ecrease space requirements, energ consumption an management an maintenance time – are often realie as well. An, in more than 7 of 10

cases, IT successfull aresses critical computing an storage capacit issues.

Virtualization addresses urgent IT issues

44%

58%

56%

55%

58%

59%

0% 10% 20% 30% 40% 50% 6

We face electricity supply

limitations.

We must reduce consumption to

meet budget cuts.

We are running out of computing or storage capacity.

Storage Consolidation

Server Virtualization & Consolidation

Over 70% of virtualization projects

successfully realize important benefits

73%

75%

71%

76%

70%

70%

73%

73%

65% 70% 75% 80%

Decreased number of storage/ server

devices to reduce energy

consumption & cost.

Decreased space needed to house

storage / server devices.

Increased storage / computing

capacity.

Decreased future investment needed

for storage / server devices.

Storage Consolidation

Server Virtualizat ion & Consolidation

Page 7




Moing esktops to a ir tual enironment an emploing thin-client machines

reuces energ consumption an enironmental impact of user

infrastructure. As one senior partner at a 100-emploee serices

rm reports, “[Thin clients have] no CPU, no RAM, no moving

parts, an connect to the irtual esktop enironment. Our tpical

computer use up to a 250-watt power suppl; our thin client

uses a 4.8-watt power suppl, so the reuction in electricit usage

is 97, 98 percent, with all the functionalit. ” Energ saings

result, as oes cost aoiance, thanks to extene refresh ccles

proie b thin client equipment.

Realizing the Benets

decreasing costs of maintenance an management is cite

as the most important factor riing implementation, realieby 69% of companies. As one IT Manager of a 350-employee

compan in the Netherlans sas, “We trie to reuce IT

[emploee] heacount …an b putting in thin clients, we coul

justify reducing service-desk staff.”

Additionally, up to 65% of companies satisfy employee demands for environmental action, and earn credits and rebates from local utilities and

governments. The latter is not surprising due to the recent surge of nancial incentives being offered by utility companies, such as Pacic Gas

an Electric, as an incentie for arious irtualiation initiaties.

Over 65% of Desktop Virtualization projects

successfully realize important benefits

65%

65%

69%

50% 55% 60% 65% 70%

Realized credits / rebates from localutilities or government

Met employees' demands for

environmental action

Decreased maintenance &

management costs

Desktop Virtualization & Thin Clients

US wholesaler saes $40K in energCASESTUdy Organization: Mi-sie American wholesaling an retailing organiation, specialiing in the construction inustr.

Situation: This rm is interested in saving energy, dollars – and in the process, the environment. The IT Director explained, “We’re interested in

initiaties that are going to sae mone, energ an then the enironment. Anthing along these lines will get inestigate, an probabl aopte.”

Approach: Realizing they had many servers running single applications, with a boatload of maintenance costs, the rm felt they could greatly

reuce operational an energ costs b upgraing to new serer boxes running man applications at once. The organiation irtualie 37 serers

running 40 applications onto a rack of eight blade servers. The business later installed specic energy sub-meters in the server room to baseline

specic equipment energy draw. “We admit that it would have been nice to do this with virtualization a year ago, so we can better identify future

optimiations,” sai the IT director.

Result: $40,000 in energy savings per year; reduced maintenance time for server room staff; increased exibility to test and run new

applications on the go.

Page 8




Server room projects achieve great success?

Three-quarters of organiations that hae upgrae their serer rooms, or built new ones, report

successful outcomes. In most cases, the projects meet or exceed top goals identied at the outset:

decreased maintenance, increased reliability of the server room and increased efciency and

cost effectiveness of air conditioning and ventilation systems. One CTO of a mid-size US nancial

services rm reports he is “extremely pleased” with the results of his server room upgrade: the

organization consolidated 250 aging servers into a new, more efcient server room, equipped to

house 10 new mainframes serers.

Existing serer room upgraes represent a lower capital expense than breaking groun on a new

facility. However, the trade-off for benets does not appear to be punitive: At least two-thirds of organiations upgraing the existing serer room facilit are happ with the results. Of particular

importance is the success in increasing computing capacit, with 7 in 10 businesses able to realie

this. At the end of the day, many mid-size rms may well be able to continue to operate with the

existing facilit, proie the choose appropriate upgraes.

From an environmental standpoint, the single biggest benet comes from more efcient use of each watt that enters the server room. IT can

hol total energ costs stea, along with the associate enironmental footprint, while computing capacit grows, through moern practices

supporte b a new facilit.

Serer room upgraes sae a danishManufacturer 80% in energ costs

An 800-emploee danish manufacturer upgrae its cooling technolog in the serer room b installing equipment that emplos col, outsie

air to reduce the need for air conditioning, thereby reducing energy costs. The IT specialist says that by adopting “free cooling,” the rm’s air

conitioner – a traitional tool in cooling its 270 square-foot serer room – is onl use about 25% of the time. Aitionall, an inestment in

blae serers an irtualiation allowe the compan to expan processing capacit without aing phsical space.

Expaning the facilit to accommoate new serers woul hae been a costl eneaor, so the compan opte to inest in blae technolog

instead. This combination of cooling upgrades and server modications – once fully implemented – should save the rm 65-80% in energy

costs oer current consumption. “We onl hae so much power going into the serer room. Serer nees are bigger, an each ear we increase

our storage by 100 percent. So, that’s the motivation [for the upgrades].”

Page 10

“We had a pent-up

demand for major

changes to the server

room . . . to avoid

equipment failures

and to have enoughpower to run things

going forward.”

CASESTUdy




You can’t manage what you can’t measure: This is a common refrain in leading-edge organizations where IT is increasingly under pressure to

manage energy costs. Our mid-size respondents are taking note: Almost one-quarter have already nished some form of energy measurement

project, and up to half plan to do so in the coming year. Initiatives in this group include sub-metering for the server room, PC energy

measurement an assessment of total IT energ use. Businesses consier energ measurement most useful for the following:

• Provide evidence for increasing efciency in existing and future IT practices. Many

organizations seek to understand, roughly, the level of energy efciency at which

the currentl operate an how the can begin to improe.

• Measure server room consumption. Many CIOs want to decrease the power

consume b serers an the serer room.

• Surprisingly, many IT organizations report their energy initiatives are in response

to customers’ demands for action. As major customers question their supplier’s

environmental performance, rms nd it necessary to have quantiable results

as part of their answer. For IT, energ consumption ata is most important in

unerstaning enironmental performance.

A number of other issues inuence the decision to measure energy. Budgetary

constraints are an issue in more than half of IT epartments, where the pressure

to reuce consumption is great. One CIO explains that, “We installe power meters

to get a granular iew of where our power consumption occurs. We charge internal

customers for the electrical consumption of their serers within the serer room. It forces

[departments] to think economically about consumption and what they’re doing with

the buget.”

Electricity supply limitations – often within the server room – force IT to “create” energy capacity through more efcient use of energy. Finally,

43% of businesses expect to feel regulatory pressure, relating to energy efciency, within a year.

Energ Measurement use as a Strategic ToolArme with the knowlege of energ conitions, most businesses agree the can

make improements. For businesses alrea engage in energ measurement,

almost 70% use the ata to improe IT operations, an almost two-thirs report a

better sense of how much energy is consumed by servers. Almost 60% of businesses are happ with the ecrease energ use that results from energ-

related projects.

IT Energy Measurement addresses

urgent IT issues

43%

46%

54%

0% 10% 20% 30% 40% 50% 6

We must comply with laws

otherwise face penalties

We face electricity supply

limitations

We must reduce consumption to

meet budget cuts

IT Energy Measurement

IT Energy Measurement projects

realize important beneifts

59%

63%

68%

50% 55% 60% 65% 70%

Decreased energy costs

Now able to measure

electricity usage at server

level to decrease future

usage

Used energy data to influence

IT asset procurement,management, and usage in

the future

Page 11

Energ measurement helps apparelmanufacturer make the grae

This 400-employee sports apparel manufacturer’s journey began with the CEO. He committed to moving the organization’s environmental

practices to a leadership position – with a goal of carbon neutrality by 2020. The VP of IT explains, “This commitment ramped up in 2006,

with the hiring of an environmental affairs ofcer,” who performed a full eco-audit, and now monitors all consumption, sets targets for each

facility, and identies large impact reduction opportunities. Having pitched in three years ago, IT measured the server room energy footprint.

A local utilit then proie creits when the organiation reuce energ use through serer consoliation, resulting in thousans in refuns

on the utilit bill.

CASESTUdy




For more than 65% of companies, decreasing consumables such as paper, toner, ink and energy are driving forces behind printer

consolidation and reduction. As one manager of a 1000-employee insurance rm said, “We eliminated 300,000 pages of output a year by

moving to print-on-demand . . . with [savings of] six to nine cents per page”. The rm realized operational

saings of nearl $30,000 ear-oer-ear.

Aitionall, man businesses wish to reuce maintenance an management costs associate withscattered printer eets composed of different makes, models and hardware requirements.

The majority of businesses are happy with the decreases they see in paper, toner and ink consumption.

More than two-thirds report that projects meet or exceed energy consumption goals. This is not

surprising, since typical mid-size companies have the potential to reduce eet size by two-thirds, as one

350-employee international services rm did.

Man look to managing en-user eice power consumption as an eas, effectie wa to reuce energ costs. These power management

initiaties inclue the following:

• Using software that centrally manages energy settings of PCs and monitors.

• Enforcing standardized power settings on all PCs before distributing to end users.

• Procuring energy-efcient equipment, such as Energy Star certied devices.

Eer kilowatt countsOler computers can use up to 300 watts uring peak loa, but less than eight watts uring sleep moes. B maximiing the number of PCs

an monitors controlle for hibernate, sleep or shut-own times, companies reuce the amount of energ consume uring length ile times,

particularly overnight. Procuring Energy Star-compliant devices or more energy-efcient equipment can also reduce power consumption during

equipment use. This includes replacing old desktops with laptops, or refreshing CRT monitors with LCD at-screens. Altogether, these power

management strategies result in signicant energy and maintenance cost savings; such benets are realized by 65% of companies

that complete such initiaties.

This 400-employee sports apparel manufacturer’s journey began with the CEO. He committed to moving the organization’s environmental

practices to a leadership position – with a goal of carbon neutrality by 2020. The VP of IT explains, “This commitment ramped up in 2006,

with the hiring of an environmental affairs ofcer,” who performed a full eco-audit, and now monitors all consumption, sets targets for each

facility, and identies large impact reduction opportunities. Having pitched in three years ago, IT measured the server room energy footprint.

A local utilit then proie creits when the organiation reuce energ use through serer consoliation, resulting in thousans in refuns

on the utilit bill.

Page 12

“We eliminated

300,000 pages of output a year by

moving to print-on-

demand . . . with

savings of six to nine

cents per page.”

Printer Consolidation

PC Power Management




Given recent jumps in fuel costs and greater awareness of harm caused by greenhouse gas emissions, many companies wish to reduce travel

to cut costs an ecrease negatie impact on the enironment. The initiaties in this stu consist of the following:

Remote Conferencing & Collaboration

• Video-conferencing and teleconferencing implementations between facilities or between ofce and client sites.

• Online collaboration environments.

Telecommuting Strategy & Capabilities

• Virtual Private Network (VPN), remote access, and unied or voice communications capabilities to enable access from

home an other remote locations.

• Policies and strategies allowing or encouraging employees to work from home.• Policies allowing or enforcing employees to work “Four-Tens” (4 days a week, 10 hours a day).

Cutting trael costs where it counts

Not surprisingl, businesses aopting trael reuction initiaties seek to ecrease the trael an fuel

consumption costs associated with driving or ying between ofce locations and to client sites. These

initiatives not only reduce costs of fuel, ights, hotels and related expenses, but also result in higher

emploee satisfaction. After implementation, more than three-quarters of organiations report their

expectations regaring trael cost saings are either met or exceee. As one CTO of a 115-emploee

nancial services rm expresses, “The rst time we ever had a board meeting where we decided not

to sen West coast folks to the East… we bought a $17,000 sstem, but it pai for itself in haing

everybody on a video-conference for just that session.”

Keeping our people happAnother major factor pushing companies to implement these initiatives, particularly telecommuting

strategies, is to satisf emploees. This rang true for one CIO of a North American public compan who

notes that, “Our emploees, face with high gas prices, are coming back to us an saing, ‘I reall like

working here but I’m driving 30 miles one way, I may have to look at something else. People don’t want

to moe, especiall for the salaries that we can pa. Telework is going to open up some aenues for us

to get emploees that are, frankl, out of our reach right now.”

Organiations are also gaining access to remote talent that the otherwise woul not be able to tap. In

two-thirds of all travel reduction projects, organizations report their employees are very satised with

the increased exibility they are now offered.

Travel reduction initiatives reduces costs

and keeps employees satisfied

68%

70%

76%

77%

56%

61%

74%

61%

40% 50% 60% 70% 80%

Meet employee demand

Access remote talent

Decrease travel costs

Decrease fuel consumption from car

or plane rides

Very Important Implementation Driver

Successfully Realized Benefit

65%

68%

74%

79%

54%

51%

62%

62%

40% 50% 60% 70% 80%

Decrease office expenses from

eliminating office s ize

Decrease fuel consumption to-and-

from the office

Meet employee demand

Decrease travel costs

Remote Conferencing & Collaboration

Telecommuting Strategies & Capabilities

Part IV: Travel Reduction

Remote Conferencing & Telecommuting Strategies

German nancial services rm cutsenironmental footprint of trael

A 100-employee German nancial services rm proves that even businesses with a small environmental footprint can save money by going green

According to its IT Director, “We’ve been given full support for two things: go green and cut costs.” Indeed, from a management perspective, the

rm’s decisions are driven by cost savings. However, the CFO pays particular attention to decisions involving energy and consumables, since

major cost savings and environmental benets usually both result. It comes as no surprise, then, that the CFO was the rst person to push a

comprehensie telecommunications strateg to reuce trael pollution an expenses an excessie oice communications costs (a tpical issue

in German businesses). IT implemente a strateg which inclue a new voIP backbone, a custom instant messenger, an wikis. Moreoer,

customer an internal communications were moe, successfull, to web conferencing for meetings wheneer possible. Reuctions in trael an

telecom costs resulte.

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CASESTUdy




Out of all initiaties in this stu, the success of IT equipment reccling relies not

on a business case with cost saings, but on a combination of enironmental

responsibilit an regulator pressures.

The single most important factor in aopting reccling initiaties is to ecrease

waste sent to landlls. A close secondary consideration is ensuring equipment

is responsibl iscare at en of life. Aitionall, there appears to be greatl

increase customer eman for responsible reccling practices. Space, too, plas

an issue: Man IT epartments are simpl running out of closets an crannies to

store ol equipment.

A Picture of Success, For Those Who Reccle

More than 80% of organiations that got into the habit of equipment reccling are happ with their performance in responsible isposal,

haing ramaticall reuce the amount of equipment the sen to the ump. Moreoer, these organiations get a big no from customers for

developing a recycling mandate. After facing some hard questions from his customers, one IT director of a corporate services rm said, “We

get to go back to show our clients that these things aren’t ending up in landlls – we’re either reusing the equipment when we can, otherwise

it’s being recycled – and it’s the responsible thing to do.”

IT Equipment Recycling is successful in

reducing environmental waste

60%

73%

75%

82%

50% 60% 70% 80% 90%

Decreased leasing / real estate

costs for equipment storage

Met customers’ demands for

environmental action

Decreased amount of

equipment sent to landfills

Decreased waste using

responsible recycling vendors

Part V: Asset Disposal

IT Equipment Recycling

Page 14




Through conersations with IT an business ecision-makers, an in sure results, four preominant Green IT Personalities emerge. These Personalities

are built from two areas. The rst area concerns Green IT attitudes and intention, or the range of approaches businesses and IT take toward

enironmental issues. The secon area examines implemente Green IT initiaties – which ones businesses hae aopte, an the rationale

for aoption.

The Green IT Personalit Matrix plots Green Attitues & Action on the ertical axis, an Implemente Green IT Initiaties on the horiontal. The four

Personalities are Green Aocates, Smart Speners, Green Seekers an Green Obserers. Rea on to unerstan each personalit, an where our IT

department ts. Then, understand the steps required to move forward with Green IT in your organization.

Part VI:Green IT Personalities

IT has Four Distinct ‘Green’ Personalities

Green Aocate

This 60-store British and North American retailer was founded by a conservationist with a passion for sustainable business. Beyond hoping to make

every employee an activist, he requires IT to pursue energy-efciency. IT rst automated low-power modes for stores outside operating hours. Next,

IT locate a new serer room in a mixe-use builing, irtualie two full racks to a single, half-full blae rack an cut require space b half. Now,

they also heat living and ofce space using server room air. Beyond energy savings, the IT Director explains, “When we buy one server for $10,000

versus 7 servers at $3,000, there’s huge ROI.” Additionally, all equipment is now recycled by a vendor with responsible recycling accreditation. A new

print-optimization program for 75 printers will minimize toner and paper use and cost-per-page. The response from end users? “Across the board, our

users are tune into being green. An the woul all be more than happ to shut their machines own before the walk out the oor.”

Which personality are you?

• Does your business have aggressive environmental policies and goals?

• Are environmental realities built into the way your rm does business?

• Do you have several IT initiatives already underway or complete, along

with green procurement and recycling policies?

If es, our business is likel a GREEN AdvOCATE.

• Is senior management at your rm sharply focused on cost control?

• Has IT has taken advantage of Green IT initiatives that decrease IT’s

operational costs and lessen investments in your infrastructure?

• Is the environment typically a secondary consideration?

If es, our business is likel a SMART SPENdER.

• Have you been tasked to investigate ways to improve the organization’s

environmental standing while keeping costs in mind?

• Has senior management team recently established green goals?

• Have you undertaken some Green IT initiatives, but you aren’t surewhat the next best step for IT is?

If es, our business is likel a GREEN SEEKER.

• Your management team hasn’t made an environmental mandate a

priority? IT is most interested in realizing ongoing cost savings, without

much thought regarding energy use?

• You don’t have formalized recycling policies?

If es, our business is likel a GREEN OBSERvER.

G r e e n A t t i t u d e s &

I n t e n t

LOW ------------------------ HIGH

GREENOBSERVERS SMART SPENDERS

GREEN ADVOCATES GREENSEEKERS

7% 25%

38%30%

Implemented Green IT Initiatives

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CASESTUdy




Green SeekersGreen Seekers make up 7% of organiations in this stu.

Attitudes & Intents:

• Having implemented basic measures, such as paper recycling and CFC bulb replacements, Green

Seekers aren’t sure where to go next. They wish to reduce environmental impact, but are unsure of

how to start an what works for their infrastructure. Competing ieas buren managers tring to get

their bearings.

• Some Green Seekers face regulations – such as equipment recycling rules – and must comply.

• A Green Seeker’s competitors may be adopting green practices – and the business is wondering how to catch up.

Action in IT:

• Have typically completed initiatives with business benets that also pick the “low-hanging fruit” on thegreen tree. For example, the rm’s employees have beneted from the exibility of telecommuting, but

IT isn’t sure how to quantify CO2 emissions reductions from this.

• IT is unable to discern which projects offer both environmental benets and cost savings.

Policies in IT:

• IT does not have a green procurement policy or energy measurement efforts, and isn’t sure where to start.

• However, IT may have unofficial support for telecommuters or an informal recycling initiative for common equipment.

Next Steps: To unerstan which initiaties offer cost saings an enironmental impact reuction, Green

Seekers must determine IT’s sweet spot. For example, with 1,000 workstations and ve servers, user

infrastructure is a better place to baseline energ an plan appropriate initiaties.

Initiaties must be accompanie b stanar processes (for example, in equipment procurement an

reccling), measurement tools (for unerstaning energ costs), an management that

encourages IT an facilities to optimie energ use together.

Green AocatesGreen Aocates make up 25% of organiations in this stu.


• Environmental considerations are integrated into all business operations; this is driven by

multiple stakeholers, an usuall has management sponsorship.

• Employees tend to be educated on environmental issues, and state that minimizing

environmental impact while doing business is a major goal.

• Cost savings through energy and consumables reduction are important, but not the only

reason for a green initiatie gets approal.

Action in IT:

• IT goals for minimizing consumption; to meet this goal, a variety of initiatives have been

customized to the rm’s infrastructure and adopted.

• Metrics, in terms of kilowatt-hours or at least energy costs, which are tracked to baseline

an improe performance.

Policies in IT:

• Environmentally preferable procurement and responsible recycling policies.

• Policy of energy and consumables tracking and reporting to senior management, who

expect continuous improements in enironmental performance.

• Full telecommuting and travel avoidance policies and strategies.

Next Steps: Green Aocate organiations shoul focus on continuous improement when

approaching major infrastructure refreshes. For example, a desktop refresh may be an

opportunit to eplo irtualie esktops on thin clients, which consume less energ

Such opportunities shoul be explore on an ongoing basis. Moreoer, publicit on

environmental leadership is a given for any Green Advocate rm able to quantify results.

Green ObserersGreen Obserers make up 30% of organiations in this stu.


• Green Observers are unlikely to have an environmental policy; beyond minor grassroots

efforts, such as paper reccling, not man initiaties are unerwa.

• However, this is not necessarily due to skepticism or outright opposition. In most cases,

Green Observers are unaware of the relative ease of select initiatives, or they don’t

recognize potential energy and cost savings available through some projects.

Action in IT:

• Common initiatives include server virtualization, printer consolidation and remote

conferencing. However, IT chooses these for specic business reasons, such as avoiding anew serer purchase, reucing operational costs or ecreasing compan trael.

• IT has less knowledge of how these initiatives decrease the company’s environmental

footprint, and considers them for business reasons other than energy efciency.

Policies in IT:

• IT does not have a green procurement policy, energy measurement efforts, ofcial travel

reuction or telecommuting manates, or a full equipment reccling initiatie et.

Next Steps: Education is the rst step. Making the links between energy efciency, cost saving

an the enironment is necessar for unerstaning Green IT initiaties. Beon eucation,

it is imperatie that an Obserer organiation get senior management support – perhaps b

emphasizing the cost savings benets – for all initiatives.

Smart SpenersSmart Speners make up 38% of organiations in this stu.


• Costs are carefully controlled – and, often unknowingly, so is environmental impact. While

costs are well accounted for, IT and the business doesn’t always realize that smart

spening can reuce enironmental impact.

• Environmental mandates may not exist, and if they do, senior leaders may not translate

reduced consumption into an environmental benet.

Action in IT:

• Minimize paper use, reduce company travel, optimize server energy use, and actively

manage PC power settings. The greenness of these initiaties is tangible – but plas secon

ddle to the main driver of cost effectiveness.

• Use energy and consumables effectively, and target major pieces of infrastructure with

suboptimal expenses. Spen mone up-front if long-term cost reuction, as emonstrate

in a business case, is achieable.

Policies in IT:

• Mandates to purchase energy-saving equipment and shun travel whenever possible are

common. Howeer, these policies o not hae a green unerpinning.

• IT may not have formal energy measurement in place, and therefore has only a rudimentar

iea of what energ saings are achiee; howeer, establishing further measurement

coul ientif new cost saings opportunities.

Next Steps: Recognizing existing initiatives as green is a start. Moving forward, these rms

should understand future cost-optimization projects allow decreased consumption and reduce

enironmental footprint. If management eelops a green manate, the return-on-

investment bar may sometimes need to be decreased to approve Green IT projects offering

smaller, but still positie returns.

Smart Spener

A mid-size American nancial services rm aimed to get server and travel costs as low as possible – and realized a reduction in its

environmental footprint, too. The CTO explains that, “I try to incorporate some green into our practices. Ultimately, it needs a strong nancial

incentive, but I nd that the initiatives usually do.” In 2005, IT virtualized 30 servers onto six machines, with 5 kWh savings, hourly (about

$4,000 yearly – and 24 fewer servers to replace). It also l iberated one full-time employee to work on other tasks. With two ofces on opposit

coasts, trael reuction mae sense; the US$17,000 cost of a ieo-conferencing setup was coere b saings from a two-a meeting with

eight employees who would’ve otherwise travelled. Besides a philosophy of aggressive cost control, the CTO mused that something intangible

is happening: “The Coke can, the newspaper no longer goes in the garbage. Some hae eelope habits at home an those people are

bringing them here. I don’t see it as a business thing. It’s broader. It’s more of a social or community thing.”

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CASESTUdy




Conclusion

Businesses around the world have discovered that going green isn’t just good for the planet;

it’s good for their bottom lines. The ndings in this report highlight how mid-size companies are

realizing signicant cost savings when they adopt Green IT initiatives.

Man goernments are pressing business for action on the enironment, through both regulatorregimes an international treaties, an this tren will surel continue. Customers an partners will

eman een greater enironmental accountabilit. Emploees, too, will start to ask for measures

that reuce enironmental impact, whether it is the abilit to telecommute or to implement a

recycling program in the ofce.

This report emonstrates that IT epartments across the globe are committe to minimiing their

enironmental footprint, espite the challenges presente b the current economic climate.

IT decision-makers show signicant interest in adopting the 11 initiatives studied in this report.

The initiatives’ cost reduction benets, coupled with business intentions in the next year, both

signal that greening will continue through 2009 an beon. Leaing IT epartments hae

embraced the cost savings opportunities inherent to increased energy efciency and reduced

consumption, and many others have now recognized these same benets.

Seeral issues are acting as catalsts for the aoption of Green IT initiaties. In the serer room,

for example, almost six in 10 businesses will run out of computing or storage capacit within 12

months. In these cases, improing the serer room to accommoate the infrastructure nees of

moern irtualiation an consoliation techniques will aress pressing business nees – as well

as proie energ-saing opportunities.

Man of the initiaties stuie in this report allow businesses to sae energ, mone an, in man

cases, realie new business capabilities. Telecommuting, for example, can offer businesses the

advantage of reducing their ofce space while providing employees with a more exible

working enironment.

In the future, corporate enironmental responsibilit will become the norm rather than the

exception as pressure from stakeholers an goernments continues. CEOs will be calling on

IT departments to do their part in reducing the organization’s overall footprint.

Page 18



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GreenIT Final Mar.4

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