Sustainability & the role of IT - Rich Lechner's Energy & Efficiency Keynote at Pulse 2009

Sustainability and the Role of Information Technology Rich Lechner Vice President, IBM Energy & Environment

The world is hot, flat, and crowded. Thomas Friedman 2 2

The world is hot, flat, and crowded. Thomas Friedman Fortunately, it is also getting smarter. 2 2

INSTRUMENTED Our world is becoming We now have the ability to measure, sense and see the exact condition of everything. INTERCONNECTED Our world is becoming People, systems, and objects can communicate and interact with each other in entirely new ways. INTELLIGENT Virtually all things, processes and ways of working are becoming We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. 3

Instrumented …every location, state, temperature, condition will become a source of valuable insight 4

Instrumented …every location, state, temperature, condition will become a source of valuable insight In 2001, there were 60 million transistors for every human on the planet… by 2010 there will be 1 billion transistors per human In 2005 there were 1.3 billion RFID tags in circulation…… by 2010 there will be 30 billion 4

Interconnected …systems working together in new ways 5

Interconnected …systems working together in new ways Worldwide mobile telephone subscriptions reached 3.3 billion in 2007 An estimated 2 billion people will be on the Web by 2011 Daily financial market messages growing from 5 billion in 2006, to 130 billion+ per day in 2010 Our personal information footprints will grow 16 times between now and 2020 5

Intelligent …every insight results in action that creates new value 6

Intelligent …every insight results in action that creates new value We’ve thought about IT as the world of data centers, software, PCs, routers, bandwidth. We’ve thought about infrastructure as the world of buildings, factories, hospitals, roads, pipelines. Those worlds are converging. The world can become smarter. We’re building it with our clients. 6

Of all the potential electricity available in an energy source, only 30 percent reaches consumers …an estimated 170 billion kilowatts are wasted by consumers each year due to insufficient power usage information 7

Intelligent Utility Network Efficient energy transmission & distribution networks reduce outages and improve grid management, reducing peakload energy requirements on the power grid by 15% to 50% IBM and utilities worldwide are proving that advanced meters (more than 45 million deployed worldwide) can enable homeowners to reduce energy costs up to 10%… …turning ordinary thermostats into day traders for energy, ensuring the best cost for the customer and better load balancing for the grid 8

Forty-five percent of traffic on the busiest New York City streets is circling the block looking for parking …congested roadways cost $78 billion annually in the form of 4.2 billion wasted hours and 2.9 billion gallons of wasted gas 9

Intelligent Transportation Systems In Stockholm, Sweden, a 7 month pilot on congestion charging saw traffic entering the city decrease by 25% and CO2 emissions decrease by 15%... …and public transportation usage increased by 40% Source: www.stockholmsforsoket.se 10

In North America, up to 22 percent of total port volume is empty containers. The Port of Jersey has 100,000 empty containers sitting in storage – worth nearly $200 million. ….U.S. CPG companies and retailers lose $40 billion annually due to inefficient supply chains 11

Intelligent Distribution Networks Chinese shipping and logistics giant COSCO utilized IBM’s Supply Chain Network Optimization Workbench (SNOW) to reduce the number of its distribution centers from 100 to 40... …thereby lowering logistics costs by 23% and reducing CO2 emissions by 15% while maintaining service levels for clients and incurring no additional costs. 12

In the U.S., a typical carrot has traveled 1,600 miles, a potato 1,200 miles, a beef roast 600 miles …grocers and consumers throw away $48 billion worth of food every year 13

Intelligent Shipping & Tracking Systems IBM and Matiq developed a first of a kind tracking solutions for food safety and traceability …Tagged over 3 million crates for tracking. Allows parent company, Nortura–a cooperative of 31,200 farmers in Norway to improve delivery locally produced sustainable meats and eggs 14

By 2020 1.3 billion people won’t have access to safe drinking water… Industry accounts for about 22% of freshwater usage today …the combined direct consumption of five food and beverage giants in 2007 was enough to serve the daily basic water needs of everyone on the planet 15

Intelligent and Advanced Water Management IBM has analyzed the chip making process in Burlington Vermont using IBM Green SigmaTM and by modifying one critical step in the process is saving 20 million gallons of water, 15,000 gallons of chemicals, and 1,550,000 kilowatts of electricity annually… … achieving $3M in annual savings and increasing manufacturing production over 30% 16

Buildings use 40% of primary energy consumed globally …30% of energy consumed by commercial buildings is wasted 17

Intelligent Buildings Enhancing existing buildings to be more energy efficient typically reduces total energy consumption by 20-50%... …while new “green” buildings have the IBM Example potential to reduce energy consumption by 80% or more. 18

Information Technology energy use is growing 12 times the overall demand. Data Centers alone consumed 180B kilowatts in 2007 and will double in the next 2 to 4 yrs …while every 100 units of energy production drives only 3 units of productive computing on average 19

Intelligent IT IBM clients have seen dramatic results: average achievable energy savings greater than 40%; average payback of <2 years in Data Center Energy Efficiency assessments; asset utilization rates increasing 2x-4x; deferral of massive capital investments in new datacenter builds… IBM Example …and $1 energy savings drives another $6-8 operational savings on average 20

Intelligent IT vs. Other Abatement Options …or you could remove 3,505,401 cars and light trucks from company fleets. …or you could plant 502,440,757 tree 20% efficiency seedlings and grow them for 10 years. What if all data improvement centers were …or you could manage and preserve could save 36 were more billion kwh or 16,329,325 acres of pine forest per year. 22m tons of efficient? CO2 ..or you could recycle 6,597,707 tons of company waste instead of sending to landfills. Data source: http://www.usctcgateway.net/tool/ 21

Factors and Influencers That Will Demand Our Attention Laws, Regulation, Standards Stakeholder Pressures Business Opportunities and Challenges Costs and Availability 22

Intelligent IT Requires a Holistic Approach People Information Product Strategy IT Property Business operations 23

Designing Energy Efficient Data Center Facilities IBM Site and Facilities Services  – Significant services deployment capability: over 100’s, 1,000’s, 10,000’s 3,300 resources for server, storage and data of sq. ft. center services and beyond – Designed and built over 30 million square feet of IBM data center familyTM of solutions raised floor for clients in 40 countries align your capital and operating costs to your business and IT needs to allow you to “pay as you grow” with: Global experience to provide end-to-end for:   Scalable modular data center Data center strategy   Enterprise modular data center Data center energy efficiency assessments   High density zone Data center design and build   Portable modular data center Data center consolidation and relocation  24

Taking Advantage of Compute Resource Innovations 25

Taking Advantage of Compute Resource Innovations IBM System IBM System IBM BladeCenter IBM POWER IBM System IBM iDataPlex z10 EC Storage Systems x3950 Up to 93% savings in Uses up to 24% less IBM Power™ 595 TS7530 Tape 64-core scalability, Cuts energy costs energy costs and 46% energy than the uses 91% less energy and SAN Volume now for x86 large 40% compared to less space than Sun HP BladeSystem and 98% less space equivalent compute Controller and scale virtualisation X2100 Single Core c-class than a 64-core HP power in an virtual disk. Can servers 9000 Superdome enterprise rack cut cost 10X 25

Use Extreme Virtualization to Gain Significant Efficiencies IBM Tivoli Service Management Family Service Management Server Storage Network Client Application Virtualization Virtualization Virtualization Virtualization Virtualization IBM TotalStorage Productivity Center IBM Systems Director WebSphere IBM VIA Virtual Client Service SAN Volume Controller Virtual I/O Server Virtual Enterprise Solution Virtual File BladeCenter Open Manager Fabric Manager Tape Virtualization System z Engine Hypersockets 26

Implement Energy Management – Enterprise wide Tivoli Energy and Asset Management Data Center Infrastructure Assets Facility Infrastructure Assets Building Automation Systems IBM Tivoli Monitoring Facilities Systems • Servers, Storage, Networks and IBM® Systems • CRAC, UPS, PDUs Director • Fire • HVAC • Wireless Sensors Active Energy Manager • Security • Power BU • Desktop (future) • Lighting IT Physical and 3rd Party Servers and Storage Virtualized Assets 27

Address the Demand Side Home Energy Driving and Flying 36.2% 44.3% Food and Diet Recycling and Waste By 2020 Personal information will grow 16x 15.1% Growth in Application and Business 4.4% Between 2000 and 2010 Storage will grow 69x workloads doubles every 2 years. Stem the growth of data Efficient Applications/Processes Improve Productivity Data de-duplication  Application virtualization &  Online collaboration (IM, Web  Thin provisioning  consolidation Conference etc) and learning Compression  Dynamic workload distribution  Paper & waste reduction  Policy-driven data retention/  “Green” SOA efficiencies  Multi-site SW development  migration coordination Energy cost allocation & billing  Integrated compliance &  Human task automation  Business process optimization  archiving Source: The nature conservancy Source: IDC, 2007 28

Remember to use Responsible Disposal “1 billion computers will potentially be scrapped between now and 2010” “55% of US-based companies do not have an IT disposal strategy” IDC, Gartner and the National Safety Council IBM is leading recycler of IT equipment Approximately 40,000 units per week  Less than 1% to the landfill  Documented the collection and recovery of over 1.5B  pounds end-of –life waste since 1995 85% of machines returned to IBM remanufacturing  centers are reused or resold 29

Stress the Importance of Monitoring & Verification IBM & Neuwing Energy deliver Industry’s first EEC Program – Transparent method to quantify, measure, verify, certify energy efficiency projects – Available in 34 Countries – Broad range of qualifying projects: • Data center design/retrofits • Server & Storage upgrades • Virtualization (server, storage, network) • General office space projects – Collaborating with Utilities to establish as vehicle for demand reduction incentives 30

Customer Results “Average achievable energy savings greater than 40%” “Data Center Energy Efficiency assessment shows average pay back < 2 years” “Average utilization rates increased 2X to 4X” “$1 energy savings drives another $6-8 operational savings on average” Source: Data from subset of IBM engagements with over 3000 clients where savings have been quantified. 31

IBM Project Big Green  42% of IBM’s employees do not regularly come into an office saving $100M annually in real estate costs Last year IBM saved $97M in travel costs by  using online collaboration instead IBM is doubling the computing capacity of its  IT centers from 2007 to 2010 w/o increasing energy use 1990-2007, avoided energy-use-CO2  emissions equivalent to 45% of IBM’s 1990 energy use, average saving of $18.2 million per year in utility cost Process improvements in the chip making  process in Burlington, VT are saving 20M gallons of water, 15 thousand gallons of chemicals and over 1.5M kilowatts of electricity annually….achieving $3M in annual savings and increasing manufacturing production over 30% 32

See Where You Are and What is Possible IBM Energy & Environment Benchmark Tool  See where you are in each area of the Energy & Environment Compare your green score to others in your industry  Get started: http://green.bathwick.com/ibm_egreen/UK  IBM Virtual Green Data Center in Second Life See what is possible by touring an energy efficient  data center on line Get started: http://w.on24.com/clients/IBMGreen  Software Energy & Environment Self-Assessment  Assess current state of your energy and environment efforts Recommends next set of steps to take  Get started: http://www.ibm.com/software/green  33

IBM Energy & Efficiency Track Title E&E track kick-off: Creating an Energy Efficient Dynamic IT Infrastructure IT Optimization Tracks: Economy meets Ecology, IBM Software for a Greener World Service Management – A Natural Fit in Your Green Strategy Energy & Efficiency  Energy Management and the Green Data Center Virtualization  Reducing Energy Costs with Power Systems Business Resiliency  IBM System x Cool Blue Technologies High Availability, High Efficiency Data Centers with Real-time Infrastructure  Storage & Information Infrastructure Energy-Efficient and Cost-Effective Data Center Solutions from APC and IBM Energy Efficiency Solutions in IBM & Commercial Environments Managing System Z  Supporting Your Green IT Initiatives with IBM Information On Demand 360-Degree Visibility for Your Building Automation Systems and Data Center Breakout Session Approved Energy & Efficiency Planning for an Energy Efficient Datacenter Data Centers: From Brown to Green -- Drivers, Approaches, and Financial Mechanisms 34

Green at Pulse Breakout Sessions Demonstration Meet the Experts Jim Fletcher   Rick Skanron Dedicated Energy and Efficiency Track Green Data Center/   Wayne Riley   John Miller Monitoring demo – Vik Chandra   Finding the Value in Green – Addressing Energy Sheri Phillips  Tuesday general session Chris O'Connor and Environmental Challenges and Opportunities  Chris Malloy  Chris Dittmer   Ian Salvage Expo Labs Birds of a Feather Sessions IBM Tivoli Business Service Manager & Using IBM Tivoli Energy Management: Monitoring for    Monitoring for Energy Management Monitoring for Energy Effective Management Management 6.2 IBM Software for a Greener World IT-led Greening: Applying IT to Make   the Entire Organization Greener Expo Theater  – A Measured Approach to Going Green: IBM Green Sigma Consulting Offering to Help Clients Reduce Energy and Water Usage 35

Ready for Energy & Environment New!! Recognizes Business Partner solutions that have  demonstrated measurable energy and environmental benefits The recently-announced worldwide program goes live  February 15th – Business Partners can learn more about the program at the February 18th webcast – register at: https://events.webdialogs.com/portal/wipevents/ register.php?id=71d258c23e&l=en-US Clients can look for Partner solutions that have a proven  environmental results – those with the IBM Ready For Energy & Environment mark 36

IBM can help you find the value in green visit ibm.com/green 37

http://greenmonk.net	32
http://www.slideshare.net	12
http://www.computerworlduk.com	5
http://be-enviornment-friendly.blogspot.com	3
http://theenergycollective.com	3
http://blogs.computerworlduk.com	2
http://www.greenmonk.net	1
http://www.theenergycollective.com	1
http://alef.fiit.stuba.sk	1

Sustainability & the role of IT - Rich Lechner's Energy & Efficiency Keynote at Pulse 2009

by Tom Raftery on Feb 13, 2009

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Sustainability & the role of IT - Rich Lechner’s Energy & Efficiency Keynote at Pulse 2009 — Presentation Transcript