Manish Bahl - Green IT: the Road Ahead - Interop Mumbai 2009


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The ongoing economic crisis has acted as a catalyst for Green IT adoption, which had struggled to move from an industry buzzword into broader market acceptance. This session will explain how organizations across the Asia Pacific region are experimenting with Green IT, even as they strive to cut costs, become more energy efficient, and environment conscious. It will help illuminate the nascent stage of the Green IT market and competitive landscape, and also assess the level of Green IT adoption by various organizations

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Manish Bahl - Green IT: the Road Ahead - Interop Mumbai 2009

  1. 1. Interop Mumbai 2009 Green IT: The Road Ahead Manish Bahl Manager – Emerging Markets & Custom Research
  2. 2. Agenda Introduction Asia Pacific IT Electricity Expenditure (2007-2012) Taxonomy Green IT Services Market in 2008 & 2009 Green IT Survey Findings – India Green IT Trends Top Five Predictions Conclusion 2
  3. 3. Green IT’s Perfect Storm Social Awareness at Highest-ever Levels Govt. Changes & Growing Regulatory Momentum Rising Global Energy Costs 3
  4. 4. Asia Pacific IT Electricity Expenditure (US$M) – 2007 to 2012 2007 2012 CAGR US$ Share US$ Share (07-12) Large Enterprises (>1000 Employees) Servers 544 11% 2,061 14% 30.5% Other Data Center Equipment 360 7% 950 7% 21.4% Server-Related (Cooling, UPS, etc.) 468 9% 1,278 9% 22.3% Distributed & Employee IT 768 15% 1,512 11% 14.5% Consumers & SME Enterprises SOHO & SME Enterprises 1,320 26% 3,344 23% 20.4% Consumer IT 1,690 33% 5,148 36% 25.0% Total 5,150 100% 14,293 100% 22.6% Source: Springboard Research 4
  5. 5. Green IT Taxonomy: “..a broad term comprising environment friendly technologies and processes employed during the manufacture, distribution, use and disposal of IT products.” Manufacture (Including Design, Production) Use of rare resources Deadly gases Energy consumption Toxic materials Water use and pollution Waste Distribution Fuel for transportation Packaging Promotion Travel/Sales Brochures/Manuals Use Energy consumption Heat generation Cooling Wastage Power conversions Disposal E-Waste clogging landfills Rapid obsolescence Churn mentality Non bio-degradable Re-use/Recover Large sizes, large volumes 5
  6. 6. Asia Pacific Green IT Services Market – 2009 Source: Springboard Research 6
  7. 7. Green IT Survey Findings - India
  8. 8. Green IT Strategy in Place - India Key Takeaways : – Majority of companies have not deployed Green IT strategies because they couldn't find a suitable solution for their company – Also, companies felt that “there was no need for it” and they had more important priorities – Results indicate that 11% of companies “do not know how Q: Does your company have a Green IT strategy in place? or where to begin” with Source: Springboard Research, 2009 regards to Green IT – Funding limitations prohibited only 9% of respondents from Green IT implementation 8
  9. 9. Key Drivers for Green IT Investment - India Q: What is the primary reason your organization implemented a Green IT strategy? Source: Springboard Research, 2009 9
  10. 10. Green IT Implementations - India Key Takeaways: – Organizations are not simply implementing one or two green business practices, but rather introducing a plethora of green initiatives – Majority of companies who have implemented Green IT strategies have initiated general power saving policies, like adjusting the setting for PCs in idle mode Q: Which of the following green IT initiatives have you implemented? Source: Springboard Research, 2009 10
  11. 11. Measurement and Monitoring Carbon Footprint - India Key Takeaway : – Even among organizations that have implemented Green IT strategies, ~65% do not monitor their carbon footprints Q: Does your organization measure and monitor its carbon footprint? Source: Springboard Research, 2009 11
  12. 12. Future Green IT Initiatives - India Key Takeaway – Among all the countries, India will be a key country to target, as 88% of organizations expressed interest in formalizing a Green IT strategy in the next 24 months Q: Do you expect your organization to implement a green IT strategy within the next 24 months? Source: Springboard Research, 2009 12
  13. 13. Green IT Initiatives Cost/Difficulty Data Center Green Design Procurement Virtualization & Storage Consolidation Options Thin + SaaS Outsourcing Power Recycling Management & Disposal Time Features Policies - 2008 13
  14. 14. Constraints to the Adoption of Green IT Lack of Awareness – These issues are only now starting to resonate with IT managers Energy Costs Hidden and Imprecise Energy Overhead Allocations – Most CIOs and IT management have no clue how much energy their operations are consuming or the carbon footprint of their organization Cost – All change costs money now, even if there are savings to be had downstream Cultural Barriers & Habit – IT organizations are resistant to any change unless it is critical, do not like to take risks and are comfortable with the familiar Complex Specifications – Confusion is always a good excuse for procrastination. The industry needs the equivalent of MPG and L/100kmh Lack of Skill Expertise to Drive Green IT Theme – There is a lack of consensus on where IT professionals can turn for expert advice on green issues 14
  15. 15. Green IT Trends – Before and After 2008 2011 Green IT Curiosity Mainstream Customers demand Few Majority Green Investors seek Green Growing interest Intense Boardroom view Only if save $$ CSR Required Green Regulations Some Many Green Taxes None Some Green Assessment/Audits Few Many 15
  16. 16. Top Five Predictions for Green IT Cost Savings will Continue to Drive Green IT Investments IT providers to develop end-to-end capabilities and move away from narrow set of capabilities Strong Growth in Virtualization and Consolidation Equipment Take-back & Disposal Programs become Imperative Global Economic Slowdown will Play Only a Limited Role in Delaying Green IT Initiatives 16
  17. 17. Conclusion Green IT is the dominant IT trend of 2009, and we are at the beginning of a very long and important industry transition – Organizations are starting to recognize that green strategies and technologies can improve their operational management, reduce costs, support business growth and help the environment Green IT makes good business sense, which will drive early adoption; in time, it will be a requirement – Two or three years down the road, the competitive landscape is set to change as organizations permit green credentials and marketing campaigns to start influencing purchasing decisions to a larger extent Virtualization, server consolidation and recycling will provide greater opportunities around Green IT theme: – Small businesses are likely to go green by choosing EnergyStar rated appliances, low power consuming electronics, blade servers and virtualization technologies, while large enterprises could look for server consolidation and adoption of other advanced technologies There is a need for IT vendors to work together with the government to ensure that regulation on Green IT is realistic and takes advantage of what IT can offer as a broad tool to reduce enterprises’ environmental footprint 17