The Climate Case for Cloud Computing


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Cost savings, flexibility, and increased mobility aren't the only cloud computing benefits getting the attention of CIOs these days. The energy and emissions savings associated with cloud computing is also a factor for companies that realize the inevitable business implications of climate change. A recent study found that cloud computing uses 90% less energy than traditional on-premises applications. And if all enterprise software moved to the cloud, the environmental benefits would be staggering. Join us in a deep dive on this topic with a customer, a cloud expert, an analyst, and a cloud app developer. You'll leave with a greater understanding of how and why cloud computing is an important part of your sustainability strategy.

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  • Jonathan Koomey is a Consulting Professor at Stanford University, worked for more than two decades at Lawrence Berkeley National Laboratory, and has been a visiting professor at both Yale and Stanford. Dr. Koomey holds M.S. and Ph.D. degrees from the Energy and Resources Group at UC Berkeley, and an A.B. in History of Science from Harvard University. He is the author or coauthor of eight books and more than 150 articles and reports, and is one of the leading international experts on the economics of reducing greenhouse gas emissions and the effects of information technology on resource use. His latest solo book, from Analytics Press, is the 2nd edition of Turning Numbers into Knowledge: Mastering the Art of Problem Solving, with more than 30,000 copies in print in English, Chinese, Italian, and (soon) Korean. Ian Gotts is Founder and CEO of Nimbus Partners, which has been offering their business process management solution as a Cloud Computing offering to major corporations including Toyota, Chevron, Nestlé, HM Revenue & Customs and HSBC Bank for the last 4 years. Nimbus have been a proactive customer of for the last 7 years and have extended it using to support every area of Nimbus’ global operation; sales, support, customer self service, HR, finance, service delivery and R&D. He is the author of 6 books including, Common Approach, Uncommon Results, Why Killer Products Don’t Sell and two Thinking of… books on Cloud Computing. His latest book, just published with a foreword by Parker Harris, is Thinking of... as your key to the Cloud Kingdom? Ask the Smart Questions which covers all the questions an ISV or CIO should ask before build on Rebecca Wettemann is a founding partner of Nucleus Research where she is responsible for development and execution of Nucleus’s investigative research: she has written and presented extensively on the topics of ROI and TCO, collaboration and knowledge management technologies, customer relationship management (CRM), enterprise applications, analytics, on-demand applications, and the business impact of technology. She is the author of numerous studies analyzing the impact and adoption of technology, including “Assessing the Real ROI from Siebel,” “Benchmarking: On-demand Solutions,” and “Oracle and Siebel – Who’s ready for small and medium-sized Businesses?” She has worked as a consultant for the International Telecommunication Union and the United States Information Agency, managing international research projects on digital communications and the economic impact of changing international telecommunications law and technology. Rebecca holds a Bachelor of Science degree in Political Science and a Bachelor of Arts degree in French from Oklahoma State University, and a Masters of Law and Diplomacy degree from the Fletcher School at Tufts University. Simon Wheeldon is a alumnus who spent four leading the adoption of across the European and Middle East regions. Under Simon’s guidance the platform in Europe grew to be a multi-million dollar business. He has over 20 years experience in the software industry: before joining, Simon was responsible for the financial services business at Siebel Systems in the UK. Previously, he has held senior positions at BusinessObjects and Accenture. Simon has a B.Sc. in Computer Science from Bristol University.
  • The Climate Case for Cloud Computing

    1. 1. The Climate Case for Cloud Computing IT Professionals Peter Coffee, Jonathan Koomey, Ph.D. , Stanford University Ian Gotts, Nimbus Partners Rebecca Wettemann, Nucleus Research Simon Wheeldon, CloudApps Carbon
    2. 2. Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of intellectual property and other litigation, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of, inc. is included in our annual report on Form 10-K for the most recent fiscal year ended January 31, 2010. This documents and others are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements.
    3. 3. What We’d Like to Share <ul><li>Multi-tenant efficiency applies to all resources </li></ul><ul><ul><li>Cuts power in and CO 2 out </li></ul></ul><ul><ul><li>Impact could soon be a single-digit % of world total </li></ul></ul><ul><li>Mandates are present reality and future certainty </li></ul><ul><ul><li>Global carbon market already exceeds $140 billion </li></ul></ul><ul><ul><li>EU = 64% of volume, but U.S. EPA now says CO 2 is a pollutant </li></ul></ul><ul><li>Cloud architectures enable optimizations </li></ul><ul><ul><li>Diverse energy sources </li></ul></ul><ul><ul><li>Ease of revising choices </li></ul></ul><ul><li>A strong sustainability story is good business </li></ul>
    4. 4. Jonathan Koomey, Ph.D. - Consulting Professor Stanford University Ian Gotts - Founder and CEO Rebecca Wettemann - Founding Partner, VP/Research Peter Coffee Head of Platform Research Moderator: Nimbus Partners Nucleus Research Simon Wheeldon - Co-founder and CEO CloudApps Carbon
    5. 5. Jonathan Koomey, Ph.D. <ul><li>Stanford University </li></ul>
    6. 6. Economic Advantages of Cloud Computing <ul><li>My claim: Powerful economic trends (driven by energy efficiency) will push users toward cloud computing </li></ul><ul><li>Four energy-related advantages of the cloud </li></ul><ul><ul><li>Diversity </li></ul></ul><ul><ul><li>Economies of scale </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Making structural changes easy </li></ul></ul><ul><li>Important issues still to work out on privacy, security, contracts, other complexities </li></ul><ul><li>Big picture: Moving bits better than moving atoms </li></ul>
    7. 7. Key Web Sites <ul><li>EPA on data centers + 2007 Report to Congress </li></ul><ul><li>LBNL on data centers: </li></ul><ul><li>The Green Grid: </li></ul><ul><li>The Uptime Institute: </li></ul><ul><li>SPEC power: </li></ul>
    8. 8. References <ul><li>Baliga, Jayant, Robert W. A. Ayre, Kerry Hinton, and Rodney S. Tucker. 2010. &quot;Green Cloud Computing:  Balancing Energy in Processing, Storage and Transport.&quot;  In Press at the Proceedings of the IEEE.  <> </li></ul><ul><li>Koomey, Jonathan. 2007a. Estimating regional power consumption by servers: A technical note . Oakland, CA: Analytics Press. December 5. < > </li></ul><ul><li>Koomey, Jonathan. 2007b. Estimating total power consumption by servers in the U.S. and the world . Oakland, CA: Analytics Press. February 15. <> </li></ul><ul><li>Koomey, Jonathan, Kenneth G. Brill, W. Pitt Turner, John R. Stanley, and Bruce Taylor. 2007. A simple model for determining true total cost of ownership for data centers. Santa Fe, NM: The Uptime Institute. September. <> </li></ul><ul><li>Koomey, Jonathan. 2008. &quot;Worldwide electricity used in data centers.&quot; Environmental Research Letters. vol. 3, no. 034008. September 23. <>. </li></ul>
    9. 9. References (Continued) <ul><li>Koomey, Jonathan G., Christian Belady, Michael Patterson, Anthony Santos, and Klaus-Dieter Lange. 2009a. Assessing trends over time in performance, costs, and energy use for servers. Oakland, CA: Analytics Press.  August 17. <> </li></ul><ul><li>Koomey, Jonathan G., Stephen Berard, Marla Sanchez, and Henry Wong. 2009b. Assessing trends in the electrical efficiency of computation over time. Oakland, CA: Analytics Press.  August 17. <> </li></ul><ul><li>Stanley, John, and Jonathan Koomey. 2009. The Science of Measurement: Improving Data Center Performance with Continuous Monitoring and Measurement of Site Infrastructure. Oakland, CA: Analytics Press.  October 23. <> </li></ul><ul><li>Taylor, Cody, and Jonathan Koomey. 2008. Estimating energy use and greenhouse gas emissions of Internet advertising. Working paper for IMC 2 . February 14. <>. </li></ul><ul><li>Weber, Christopher, Jonathan G. Koomey, and Scott Matthews. 2009. The Energy and Climate Change Impacts of Different Music Delivery Methods. Analytics Press.  August 17. <> </li></ul>
    10. 10. Ian Gotts <ul><li>Nimbus Partners </li></ul>[email_address] iangotts
    11. 11. “ How green is your company, Daddy?”
    12. 12. Rebecca Wettemann <ul><li>Nucleus Research </li></ul>
    13. 13. Quantifying the Green Benefits of Cloud Computing
    14. 14. Let’s talk about <ul><li>The cloud – key questions </li></ul><ul><li>The research </li></ul><ul><li>Results </li></ul><ul><li>Looking ahead </li></ul>
    15. 15. About Nucleus Research <ul><li>An independent IT research and advisory firm specialized in investigative, case based research. </li></ul><ul><li>Hundreds of published ROI case studies </li></ul><ul><li>Founded in 2000 </li></ul><ul><li>4.7M ROI tools distributed </li></ul><ul><li>The only firm registered with the National Association of State Boards of Accountancy Registration #108024 </li></ul>
    16. 16. <ul><li>Lower initial, ongoing costs </li></ul><ul><li>Faster time to value </li></ul><ul><li>Greater agility, flexibility </li></ul><ul><li>But what about sustainability? </li></ul>The cloud: We all know the business benefits
    17. 17. What “they” say about cloud sustainability <ul><li>It’s all marketing hype to sell us more </li></ul><ul><li>It’s only important if I save money </li></ul><ul><li>It’s only important to treehuggers </li></ul><ul><li>It can’t be measured </li></ul>
    18. 18. A closer look at cloud sustainability <ul><li>Nucleus reviewed’s data centers to quantify its total power draw. </li></ul><ul><ul><li>Inventoried each device in’s data centers </li></ul></ul><ul><ul><li>Calculated power draw of each device </li></ul></ul><ul><ul><li>Did not include indirect energy impacts </li></ul></ul><ul><li>Nucleus used its data on customers to determine how many servers they would need to support their applications if they were run on premise. </li></ul><ul><ul><li>Used user-to-server ratio and typical server configurations to calculate the average needed power draw for small, medium, and large companies </li></ul></ul><ul><ul><li>Did not include cost of power on user side for network equipment </li></ul></ul>
    19. 19. What we found <ul><li> customers experience a 91 percent energy savings by using the cloud instead of on-premise computing. </li></ul> customers save the energy equivalent of 11 barrels of oil every hour.
    20. 20. Looking forward <ul><li>Organizations will be increasingly pressured to show their carbon footprint and impact on sustainability. </li></ul><ul><li>Current customers can estimate their savings by calculating the associated power draw and multiplying it by .91 for a good approximation of their current green benefit. </li></ul><ul><li>Customers consider new or greater cloud investment can plan on similar metrics. </li></ul><ul><li>The cloud advantage is more than just economic savings – and you can prove it. </li></ul>
    21. 21. Simon Wheeldon <ul><li>CloudApps Carbon </li></ul>
    22. 22. Sustainability – A Boardroom Imperative <ul><li>The reconciliation of environmental , social & business demands </li></ul><ul><li>A boardroom imperative – driven by: </li></ul><ul><ul><li>Steeply Rising Energy, Waste & Water Costs </li></ul></ul><ul><ul><li>Brand Pressure and Compliance Risk </li></ul></ul><ul><ul><li>Investor, Customer, Supplier, Employee, Media Pressure </li></ul></ul>Source: 1000+ Global CEO Survey – Accenture & United Nations Global Compact
    23. 23. Rapidly Embed Sustainability Into Your Business <ul><li>Measurement & reporting is just the first step … </li></ul><ul><li>You will soon need to consider how to: </li></ul><ul><ul><li>Set & Track Corporate Sustainability Goals </li></ul></ul><ul><ul><li>Align your whole organization behind your stated goals through targets and budgets </li></ul></ul><ul><ul><li>Communicate your strategy right down to the individual employee </li></ul></ul><ul><ul><li>Empower EVERY employee to get involved and make a difference </li></ul></ul><ul><ul><li>Iterate against your goals in real-time to make sure you stay on track </li></ul></ul>Measure Align Deliver Engage Communicate Disclose
    24. 24. & CloudApps (booth 918!) <ul><li>The world’s most sustainable platform powers the leading Corporate Sustainability Management application. </li></ul>Carbon Disclosures CloudApps Sustainability Platform <ul><li>Sustainable </li></ul><ul><li>Innovative </li></ul><ul><li>Collaborative </li></ul><ul><li>Agile </li></ul><ul><li>Trusted </li></ul>Source Allocations Footprint Comparisons Disclosures Definitions Emission Factor Bodies Disclosure Calculation Social Sustainability
    25. 25. Jonathan Koomey Stanford University Ian Gotts Rebecca Wettemann Peter Coffee , Moderator: Nimbus Partners Nucleus Research Simon Wheeldon CloudApps Carbon Let’s Discuss!
    26. 26. Whatever You Believe About Climate Change <ul><li>Multi-tenant efficiency applies to all resources </li></ul><ul><ul><li>Cuts power in and CO 2 out </li></ul></ul><ul><ul><li>Impact could soon be a single-digit % of world total </li></ul></ul><ul><li>Mandates are present reality and future certainty </li></ul><ul><ul><li>Global carbon market already exceeds $140 billion </li></ul></ul><ul><ul><li>EU = 64% of volume, but U.S. EPA now says CO 2 is a pollutant </li></ul></ul><ul><li>Cloud architectures enable optimizations </li></ul><ul><ul><li>Diverse energy sources </li></ul></ul><ul><ul><li>Ease of revising choices </li></ul></ul><ul><li>A strong sustainability story is good business </li></ul>
    27. 27. The Climate Case for Cloud Computing
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