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  • 1. 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”
  • 2. Housekeeping
    • Submitting questions to speaker
      • Type question into small box in the Chat (Q&A) window on the left and click the arrow button.
      • Questions will be answered during 10 minute Q&A session at end of webcast.
    • Technical difficulties?
      • Click on “Help” from top menu – select “Troubleshooting” to test system, get FAQ
      • Or get tech support via Q&A tool
  • 3. Main Presentation
  • 4. Agenda
    • Supporting the Organization’s Green Strategy
    • Potential Risks
    • Data Centers and Electricity
    • The Green IT Process
    • Management Opportunities
    • Technical Opportunities
    • Continuous Improvement
  • 5. Supporting the Organization’s Green Strategy
    • The environment and being “green” is an organizational issue
      • 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
  • 6. 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
  • 7. Green Data Center Electrical Demand Management Benefits Cost Savings
    • Brand
    • Reputation
    • Customers
    • Investors
    • Employees
    Protecting the Environment Regulatory Compliance Intense Pressure
  • 8. 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
  • 9. 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 fold 2
    • Studies like these increase visibility
      • Brand impacts
      • Potential for regulation
    • A very certain outcome is increased operating costs if left unmanaged
  • 10. 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
  • 11. Understanding Electrical Costs
    • Servers can be utilized as little as 6% on average 1
    • Data centers can run at 56% of peak performance 1
    • 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
    • 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
  • 12. Power Consumption
    • Chiller 33%
    • IT Equipment 30%
    • UPS 18%
    • Computer Room Air Conditioning (CRAC) 9%
    • Power Distribution Units (PDUs) 5%
    • Humidifiers 3%
    • Switch / generator 1%
    • Lighting 1% 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 24% goes to power
  • 13. Where to Begin The Green IT Process
  • 14. 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.”
  • 15. 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
  • 16. Green IT Architecture and Standards Mgt
    • Need to establish and enforce standards
    • Work with
      • 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
  • 17. Green IT Functional Area Objective Mgt
    • Need to ensure that various IT areas have objectives that align with:
      • Green IT Objectives
      • Organization’s Green Strategy
    • Alignment
      • Initially
      • Ongoing
        • Scheduled Review
        • After Major Change
  • 18. Green IT Assessments
    • Continuous process improvement
    • Need to understand current state
    • Identify ideal states
    • Gaps / opportunities for Improvement
    Plan Do Check Act
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. Management Opportunities
  • 23. Management Opportunities (1)
    • 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
    • Avail of government initiatives
      • Department of Energy
      • Environmental Protection Agency
      • State and Local governments (tax credits, bonds, etc.)
    • 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
  • 24. Management Opportunities (2)
    • 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
        • 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
  • 25. 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
  • 26. 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
  • 27. Technical Opportunities (1)
    • Consolidate Applications
      • Do you really need 20 different financial packages?
      • Can you reduce the servers and storage?
    • Identify and Remove Ghosts
      • 20-30% of servers may no longer be generating value but till incurring operating expenses 1
    • 1 Watt IT Equipment Saved Reduces Cooling 1 Watt
      • Savings on IT equipment can be a 2-for-1 or even greater
    • Newer is Typically Better
      • Some cultures “run until things break”
        • Some systems are 10-20 years old
      • Newer has more efficient components, better power management, etc.
      • Fairly true across the board:
        • 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 systems 1
        • Chillers –Reductions of 50% 2
    1 Brill, Kenneth G. "Data Center Dirty Secrets." Forbes. June 30, 2008. 2 The Green Data Center: Steps for the Journey.
  • 28. 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.
  • 29. Technical Opportunities (3)
    • Pursue Modular Design Approaches
      • 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
    • 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
  • 30. Technical Opportunities (4)
    • Monitor Power Use
      • Monitor power to the rack level if possible
      • Track and trend over time
    • Distributed Generation / On-site Generation
      • 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
        • More options are appearing weekly!
  • 31. 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
  • 32. 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:
    • US order site:
  • 33. Resources (1)
    • The News - Archive, RSS and Email Subscription Instructions http://
    • George’s Green IT Resource Page
    • 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)
    • Uptime Institute http:// /
    • US Department of Energy – Energy Efficiency and Renewable Energy
    • DOE – Creating Energy Efficient Data Centers
    • American Society of Heating, Refrigeration and Air-Conditioning Engineers – Technical Committee 9.9
    • The Data Center Journal
    • The Green Grid
  • 34. Resources (2)
    • Simon Mingay. “10 Key Elements of a ‘Green IT’ Strategy”. Gartner. December 2007.
    • Energy Information Administration. Electric Power Monthly
    • National Data Center Energy Efficiency Information Program
    • Lawrence Berkeley National Labs – Data Center Best Practices
    • Kenneth G Brill. “Data Center Energy Efficiency and Productivity”. The Uptime Institute. 2007.
    • Cogeneration & On-site Power Production
    • US Department of Energy – Distributed Energy Program
    • Chena Hot Springs Geothermal Project
    • State of California – Distributed Energy Resource Guide
  • 35. Thank you for the privilege of facilitating this webcast George Spafford [email_address] The News - Archive, RSS and Email Subscription Instructions (Covers IT management, business, energy, security and a host of other topics)
  • 36. Sponsor Slides Follow
  • 37. Questions?
  • 38. Next Green IT Webcast On 12/15/08 – “ Leveraging Software to Improve Energy Efficiency ”
  • 39. Thank you for attending If you have any further questions, e-mail [email_address] For future Webcasts, visit