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    • Governing IT in a Green World December 2, 2008 2:00pm EDT, 11:00am PDT George Spafford, Principal Consultant Pepperweed Consulting, LLC “ Optimizing The Business Value of IT” http://www.pepperweed.com
    • 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
    • Main Presentation
    • Agenda
      • Supporting the Organization’s Green Strategy
      • Potential Risks
      • Data Centers and Electricity
      • The Green IT Process
      • Management Opportunities
      • Technical Opportunities
      • Continuous Improvement
    • 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
    • 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
    • Green Data Center Electrical Demand Management Benefits Cost Savings
      • Brand
      • Reputation
      • Customers
      • Investors
      • Employees
      Protecting the Environment Regulatory Compliance Intense Pressure
    • 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
    • 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
      • 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/
    • 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
    • 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
      • http://bits.blogs.nytimes.com/2008/05/01/data-centers-are-becoming-big-polluters-study-finds/
    • 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%
      http://www.thegreengrid.org/gg_content/Green_Grid_Guidelines_WP.pdf 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
    • Where to Begin The Green IT Process
    • 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.”
    • 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
    • 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
    • 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
    • Green IT Assessments
      • Continuous process improvement
      • Need to understand current state
      • Identify ideal states
      • Gaps / opportunities for Improvement
      Plan Do Check Act
    • Green IT Metrics
      • Need baselines!
      • Power Usage Effectiveness (PUE)
        • PUE = Total Data Center Facility Power / IT Equipment Power
        • Total Data Center Power includes everything – PDUs, CRACs, IT Equipment, etc.
        • IT Equipment Power is just computers, switches, network gear, etc.
        • Can use to calculate demands
          • If PUE = 3 and new devices is 100 watts then total energy demands could be 3 x 100 = 300 watts total
      • Data Center Infrastructure Efficiency (DCiE)
        • 1/PUE or IT Equipment Power / Total Data Center Power
        • Just a reciprocal but shows what amount of total power is being used by the IT equipment
      • Understand Actual Usage and Costs
        • By Service ideally
      http://www.thegreengrid.org/gg_content/Green_Grid_Guidelines_WP.pdf
    • 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
    • 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
    • Management Opportunities
    • 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
    • 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
    • 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
    • High-Level Technical Opportunities The 7/21/08 – “ Implementing a Green Data Center ” Webinar Provided more technical and focused on opportunities within the data center to reduce energy consumption http://solutions.internet.com/4991_default
    • 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. http://www.forbes.com/technology/2008/06/29/google-microsoft-economics-tech-cio-cx_kgb_0630goog.html 2 The Green Data Center: Steps for the Journey. http://www.redbooks.ibm.com/abstracts/redp4413.html
    • 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.
    • 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
      1. http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=295302
    • 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!
    • 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
    • New Pocket Guide – The Governance of Green IT
      • Available from IT Governance
      • Covers Governance and Process Considerations
      • Introduces the Green IT Process in More Detail
      • Target publish date is December 11, 2008
      • Pre-orders Now
      • International order site: www.itgovernance.co.uk/products/2106
      • US order site: www.itgovernanceUSA.com/product/1827.aspx
    • Resources (1)
      • The News - Archive, RSS and Email Subscription Instructions http:// www.spaffordconsulting.com/dailynews.html
      • George’s Green IT Resource Page http://www.spaffordconsulting.com/GreenITResources.html
      • 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
      • Uptime Institute http:// www.uptimeinstitute.org /
      • US Department of Energy – Energy Efficiency and Renewable Energy http://www1.eere.energy.gov/industry/saveenergynow/partnering_data_centers.html
      • DOE – Creating Energy Efficient Data Centers http://www1.eere.energy.gov/industry/saveenergynow/pdfs/doe_data_centers_presentation.pdf
      • American Society of Heating, Refrigeration and Air-Conditioning Engineers – Technical Committee 9.9 http://tc99.ashraetcs.org/
      • The Data Center Journal http://datacenterjournal.com/
      • The Green Grid http://www.thegreengrid.org
    • Resources (2)
      • Simon Mingay. “10 Key Elements of a ‘Green IT’ Strategy”. Gartner. December 2007.
      • Energy Information Administration. Electric Power Monthly http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
      • National Data Center Energy Efficiency Information Program http://www1.eere.energy.gov/industry/saveenergynow/pdfs/national_data_center_fact_sheet.pdf
      • Lawrence Berkeley National Labs – Data Center Best Practices http://hightech.lbl.gov/datacenters.html
      • Kenneth G Brill. “Data Center Energy Efficiency and Productivity”. The Uptime Institute. 2007. http://www.cio.co.uk/whitepapers/index.cfm?whitepaperid=4241
      • Cogeneration & On-site Power Production http://www.cospp.com
      • US Department of Energy – Distributed Energy Program http://www.eere.energy.gov/de/
      • Chena Hot Springs Geothermal Project http://www.yourownpower.com/
      • State of California – Distributed Energy Resource Guide http://www.energy.ca.gov/distgen/index.html
    • Thank you for the privilege of facilitating this webcast George Spafford [email_address] http://www.pepperweed.com The News - Archive, RSS and Email Subscription Instructions http://www.spaffordconsulting.com/dailynews.html (Covers IT management, business, energy, security and a host of other topics)
    • Sponsor Slides Follow
    • Questions?
    • Next Green IT Webcast On 12/15/08 – “ Leveraging Software to Improve Energy Efficiency ” http://solutions.internet.com/5346_default
    • Thank you for attending If you have any further questions, e-mail [email_address] For future internet.com Webcasts, visit www.internet.com/webcasts