Cloud Computing and Sustainability:The Environmental Benefits of Movingto the Cloud                       In collaboration...
Executive Summary                  2   Case Study – Global ConsumerIntroduction: Is the Cloud a           Goods Company   ...
Executive                  Cloud computing—large-scale, shared                           IT infrastructure available over ...
Introduction: Is the Cloud a “Greener”Computing Alternative?Both cloud computing and                Economy In the Informa...
Research ApproachBuilding upon previous analysis work      • Power Consumption for                To assess the carbon foo...
Summary FindingsThe results of the analysis for                         As the data shows, the per-user                   ...
How Does Cloud Computing Reducethe Environmental Impact of IT?To understand the potential               a reduced need for...
business demand for services               multi-tenant environments, cloud                far fewer servers. Whereas a ty...
an environment separated from            has released an update13 to its initial   Other Important Factorsthe underlying p...
Generally speaking, cloud computing      from low-carbon electricity sources,    drives the efficiency of IT with         ...
Case Study – Global Consumer Goods CompanyTo further validate the findings produced in              and Europe already ben...
Conclusion & OutlookExpanding the Cloud                        companies’ applications, overall            aggregate IT ef...
AppendixModel Overview                              • Secondary server consumption data         Related Environmental Rese...
Supply Chain Logistics &                 Model Exclusions                           Microsoft Project Sponsorship:Distribu...
1 “On-premise" refers to running an IT            8 Energy use to transmit data between users       11 The Green Grid. Fiv...
About Accenture                           About WSP Environment &               About MicrosoftAccenture is a global manag...
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Cloud computing and sustainability


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Cloud computing and sustainability: The environmental benefits of moving to the cloud - a look at the future of the cloud and it's 'greener' motives.

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Cloud computing and sustainability

  1. 1. Cloud Computing and Sustainability:The Environmental Benefits of Movingto the Cloud In collaboration with
  2. 2. Executive Summary 2 Case Study – Global ConsumerIntroduction: Is the Cloud a Goods Company 10“Greener” Computing Alternative? 3 Conclusion & Outlook 11Research Approach 4 Expanding the Cloud 11Summary Findings 5 Further Improvements 11How Does Cloud Computing Reduce Appendix 12Environmental Impacts of IT? 6Dynamic Provisioning 6Multi-Tenancy 7Server Utilization 7Data Center Efficiency 8Other Important Factors 82
  3. 3. Executive Cloud computing—large-scale, shared IT infrastructure available over the Several key factors enable cloud computing to lower energy useSummary internet—is transforming the way corporate IT services are delivered and and carbon emissions from IT: • Dynamic Provisioning: Reducing managed. wasted computing resources To assess the environmental impact of through better matching of serverThe cloud’s cloud computing, Microsoft engaged capacity with actual demand. with Accenture—a leading technology,unprecedented economies consulting and outsourcing company— • Multi-Tenancy: Flattening relative peak loads by serving large numbersof scale reduce overall and WSP Environment & Energy—a of organizations and users on global consultancy dedicated tocost and increase environmental and sustainability shared infrastructure.efficiencies, especially issues—to compare the energy use • Server Utilization: Operating and carbon footprint of Microsoft servers at higher utilization rates.when replacing an cloud offerings for businesses with • Data Center Efficiency: Utilizingorganization’s locally corresponding Microsoft on-premise advanced data center infrastructure deployments.operated on-premise1 designs that reduce power loss The analysis focused on three of through improved cooling, powerservers. But does this Microsoft’s mainstream business conditioning, etc.advantage also translate applications—Microsoft Exchange®, Though large organizations can Microsoft SharePoint® and Microsoftto environmental Dynamics® CRM. Each application lower energy use and emissions by addressing some of these factorsbenefits? is available both as an on-premise in their own data centers, providers version and as a cloud-based of public cloud infrastructure are equivalent.2 The team compared best positioned to reduce the the environmental impact of cloud- environmental impact of IT because of based vs. on-premise IT delivery on their scale. By moving applications to a per-user basis and considered three cloud services offered by Microsoft different deployment sizes—small or other providers, IT decision- (100 users), medium (1,000 users) makers can take advantage and large (10,000 users). of highly efficient cloud The study found that, for large infrastructure, effectively deployments, Microsoft’s cloud “outsourcing” their IT efficiency solutions can reduce energy use investments while helping their and carbon emissions by more than company achieve its sustainability 30 percent when compared to their goals. Beyond the commonly cited corresponding Microsoft business benefits of cloud computing— applications installed on-premise. such as cost savings and increased The benefits are even more impressive agility—cloud computing has the for small deployments: Energy use potential to significantly reduce and emissions can be reduced by the carbon footprint of many more than 90 percent with a shared business applications. cloud service. 2
  4. 4. Introduction: Is the Cloud a “Greener”Computing Alternative?Both cloud computing and Economy In the Information Age” Note: While this research focusessustainability are emerging as estimates that the environmental on direct carbon reduction benefitstransformative trends in business footprint from data centers will more of the cloud, it is also important toand society. Most consumers than triple between 2002 and 2020, mention potential indirect benefits(whether they are aware of it making them the fastest-growing of cloud computing beyond theor not) are already heavy users of contributor to the Information and scope of this study. Like broadbandcloud-enabled services, including Communication Technology (ICT) and other technologies providedemail, social media, online gaming, sector’s carbon footprint. by the ICT sector, cloud computingand many mobile applications. is emerging as a viable, scalable It stands to reason that consolidatingThe business community has begun technology that can help significantly corporate IT environments into large-to embrace cloud computing as a reduce carbon emissions by enabling scale shared infrastructure operatedviable option to reduce costs and new solutions for smart grids, smart by specialized cloud providers wouldto improve IT and business agility. buildings, optimized logistics and reduce the overall environmental dematerialization. The Smart 2020At the same time, sustainability impact and unlock new efficiencies. report estimates the potential impactcontinues to gain importance But does this assumption pass the of ICT-enabled solutions to be asas a performance indicator test of a quantitative assessment much as 15 percent of total globalfor organizations and their on a per-user basis? carbon emissions (or 7.8 billion tonsIT departments. Corporate Considerable research has been of CO2 equivalents per year). Broadsustainability officers, regulators dedicated to understanding the adoption of cloud computing canand other stakeholders have environmental impact of data stimulate innovation and acceleratebecome increasingly focused on IT’s centers and to improving their the deployment of these enabledcarbon footprint, and organizations efficiency.5 However, the aggregate solutions. Consequently, cloudare likewise placing more emphasis sustainability impact of choosing computing may have a major impacton developing long-term strategies a cloud-based application over an on global carbon emissions throughto reduce their carbon footprint on-premise deployment for the same indirect benefits in addition to thethrough more sustainable operations application has not been rigorously direct savings from replacementand products.3 analyzed. For example, how might a of on-premise infrastructureCloud service providers are making CRM solution for 1,000 sales agents which are analyzed here.significant investments in data reduce the overall environmentalcenter infrastructure to provide not footprint when it is run in the cloudonly raw computing power but also versus on a company’s own servers?Software-as-a-Service (SaaS) business Is there a net benefit of movingapplications for their customers. to the cloud, or are we simplyNew data centers are being built at “outsourcing” the environmentalever-larger scales and with increased impact to a service provider? Thisserver density, resulting in greater Microsoft-sponsored study is targetedenergy consumption. The Smart 2020 at answering these kinds of questions.report4 “Enabling the Low Carbon3
  5. 5. Research ApproachBuilding upon previous analysis work • Power Consumption for To assess the carbon footprintwith Microsoft,6 Accenture and WSP Networking8 and Storage: Average of cloud-based applications, theEnvironment & Energy developed a power consumed for networking research team collected data fromquantitative model to calculate the and storage equipment in addition Microsoft’s current data centerenergy use and carbon footprint of an to server power consumption. operations. On-premise deploymentsorganization’s IT applications for both were modeled based on Microsoft’s • Data Center Power Usagecloud and on-premise deployment. product recommendations and input Effectiveness (PUE): Data centerThis approach aligns with the from subject-matter experts, and efficiency metric which is definedassessment methodology developed by were validated with a case study as the ratio of the total datathe Global e-Sustainability Initiative using actual customer data. center power consumption divided(GeSI),7 the industry consortium by the power consumption of The assessment looked at thepromoting sustainability on behalf of the IT equipment. Power usage environmental impact of threeleading ICT companies. effectiveness accounts for the different Microsoft applications—The model quantifies energy use power overhead from cooling, all of them major products inand carbon emissions on a per-user power conditioning, lighting and Microsoft’s portfolio of (server-basis. To account for the fact that other components of the data based) business applications:9on-premise server counts do not center infrastructure. • Microsoft Exchange (email,follow a linear scale as user counts • Data Center Carbon Intensity: calendar and contacts)increase, the research analyzes the Amount of carbon emitted toimpact among three different sizes • Microsoft SharePoint (collaboration generate the energy consumedof user groups: small (100 users), and web publishing) by a data center, dependingmedium (1,000 users) and large • Microsoft Dynamics CRM (customer on the mix of primary energy(10,000 users). relationship management) sources (coal, hydro, nuclear,Specific input data utilized by the wind, etc.) and transmission These products are representative ofresearch team included the following losses. The carbon emission factor three types of business applications(also see the Appendix for more is a measurement of the carbon that are used broadly by companiesdetailed information): intensity of these energy sources. across industries. Assessing multiple• User Count: Number of provisioned applications with different usage users for a given application. characteristics provides a diverse set of data points to validate the• Server Count: Number of hypothesis. production servers to operate a given application.• Device Utilization: Computational load that a device (server, network device or storage array) is handling relative to the specified peak load.• Power Consumption per Server: Average power consumed by a server. 4
  6. 6. Summary FindingsThe results of the analysis for As the data shows, the per-user Note that, because MicrosoftMicrosoft clearly show significant energy use and carbon footprint is applications and data centers weredecreases in CO2 emissions per heavily dependent on the size of the the basis of the study, the specificuser across the board for cloud- deployment. The cloud advantage carbon reductions from running otherbased versus on-premise delivery is particularly compelling for small applications from other softwareof the three applications studied deployments, because a dedicated providers on a cloud model may(see Figure 1). infrastructure for small user counts— vary. However, the trends shown as in a small business running its own here are instructive and may beThe analysis suggests that, on average servers—typically operates at a very used as directional indicators foracross the different applications, low utilization level and may be idle decision makers in corporate IT andtypical carbon emission reductions for a large part of the day. However, sustainability leadership positionsby deployment size are: even large companies serving when considering a switch to cloud• More than 90 percent for small thousands of users can derive computing with any provider. deployments of about 100 users efficiencies from the cloud beyond• 60 to 90 percent for medium-sized those typically found in on-premise deployments of about 1,000 users IT operations.• 30 to 60 percent for large deployments of about 10,000 usersFigure 1: Comparison of Carbon Emissions of Cloud-Based vs. On-Premise Delivery of Three MicrosoftApplicationsMicrosoft Exchange Microsoft Sharepoint Microsoft Dynamics CRMOn-premise vs. Cloud Comparison, On-premise vs. Cloud Comparison, On-premise vs. Cloud Comparison,CO2e per user CO2e per user CO2e per user >90% >90% >90% >90% 79% 81% 76% 52% 20% Small Medium Large Microsoft Small Medium Large Microsoft Small Medium Large Microsoft On-Premise On-Premise On-Premise Cloud On-Premise On-Premise On-Premise Cloud On-Premise On-Premise On-Premise Cloud = estimated decrease with Microsoft Cloud5
  7. 7. How Does Cloud Computing Reducethe Environmental Impact of IT?To understand the potential a reduced need for IT infrastructure kind of over-provisioning typicallyadvantage of cloud computing in to support a given user base. In turn, results from:more detail, it is important to look at these primary levers are heavily • The desire to avoid ongoing capacitythe distinct factors contributing to a influenced by four key factors (see adjustments as demand fluctuateslower per-user carbon footprint. These Figure 2): over time.factors apply across cloud providers • Dynamic Provisioningin general and are even relevant for • Difficulty in understanding andmany on-premise scenarios. This level • Multi-Tenancy predicting demand growth andof understanding can thus help IT peak loads. • Server Utilizationexecutives target additional efficiency • Budget policies that encouragegains in an on-premise environment • Data Center Efficiency (expressed by using all available funds in a givenand realize additional performance power usage effectiveness) year to avoid smaller allocationsadvantages in the future. Dynamic Provisioning the following fiscal year.Generally speaking, the comparatively IT managers typically deploy far Over-provisioning is certainlysmaller carbon footprint of cloud more server, networking and storage understandable. Applicationcomputing is a consequence of both infrastructure than is actually needed availability is a high priority in ITimproved infrastructure efficiency and to meet application demand. This operations, because IT executives want to avoid situations in whichFigure 2: Key Drivers of Cloud Computing’s Reduced Environmental Footprint Cloud Benefits Reduce over-allocating Forecasting and ongoing adjustment of allocated of infrastructure capacity avoids unnecessary over-allocation of (Dynamic Provisioning) resources and sizing close to actual usage. Share application Sharing application instances between client instances between organizations (tenants) flattens peak loads and multiple organizations reduces overhead for tenant onboarding and Reduce Carbon (Multi-Tenancy) management. Footprint per User Operate server Large deployments of virtualized server infrastructure infrastructure at serving multiple tenants can balance compute and higher utilization storage loads across physical servers and thus be operated at higher utilization rates. Improve data center Industrialized data center design at scale and efficiency (PUE) optimized for power efficiency reduces power wasted on cooling, UPS etc. and allows running servers at optimal utilization and temperature. 6
  8. 8. business demand for services multi-tenant environments, cloud far fewer servers. Whereas a typicalexceeds what IT can provide. providers can reduce overhead for on-premise application may run atThus infrastructure planning on-boarding and managing individual 5 to 10 percent average utilizationis typically conducted with a organizations and users. rate, the same application in theconservative, “just in case” mindset cloud may attain 40 to 70 percent The Microsoft cloud offeringsthat results in capacity allocation that utilization, thus dramatically analyzed in this study are relativelyis not aligned with actual demand. increasing the number of users new and are currently experiencing served per machine.10By contrast, cloud providers tend rapid growth. The more mature ato manage capacity much more given cloud service becomes, the It is important to note that whilediligently, because over-provisioning less the demand will fluctuate, servers running at higher utilizationat the cloud’s operational scale resulting in even greater energy rates consume more power, thecan be very expensive. Providers savings in the future. resulting increase is more than offsettypically have dedicated resources by the relative performance gains. Asto monitor and predict demand and Server Utilization illustrated in Figure 3, increasing the Cloud computing can drive energycontinually adjust capacity, and utilization rate from 5 to 20 percent savings by improving server utilizationtheir teams have developed greater will allow a server to process four (the measurement of the portionexpertise in demand modeling and times the previous load, while power of a server’s capacity that anin the use of sophisticated tools consumed by the server may only application actively uses). As large-to manage the number of running increase by 10 or 20 percent.11 scale cloud providers tend to runservers. Thus, cloud providers can their infrastructure at higher and Virtualization offers a strategy toreduce the inefficiency caused by more stable utilization levels than improve server utilization for bothover-provisioning by optimizing the corresponding on-premise operations, cloud and on-premise scenariosnumber of active servers to support the same tasks can be performed with by allowing applications to run ina given user base.Multi-TenancyJust as multiple tenants in anapartment building use less poweroverall than the same number of Figure 3: Relationship between Server Utilizationpeople owning their own homes, and Power Consumptionso do the multiple tenants of acloud-provided infrastructurereduce their overall energy use 100%and associated carbon emissions.The cloud architecture allows Minor increaseproviders to simultaneously serve in power consumptionmultiple companies on the same Powerserver infrastructure. Disparate Consumed Factor 4demand patterns from numerous performance increasecompanies flatten overall demandpeaks and make fluctuations morepredictable. The ratio between peakand average loads becomes smaller, 0% 5% 20% 100%and that in turn reduces the needfor extra infrastructure. Major cloud Computational Load (Utilization)providers are able to serve millionsof users at thousands of companiessimultaneously on one massiveshared infrastructure. By operating7
  9. 9. an environment separated from has released an update13 to its initial Other Important Factorsthe underlying physical servers. 2007 Report to Congress,14 stating an In addition to the four primary driversMultiple virtual machines can share average power usage effectiveness of of cloud computing’s environmentala physical server running at high 1.91 for U.S. data centers, with most advantage, other contributing factorsutilization, which reduces the number businesses averaging 1.97. are worth mentioning:of physical servers required to meet Through innovation and economies • Hardware comes with anthe same demand. IT organizations of scale, cloud providers can “embodied” carbon footprintcan scale individual virtual resources significantly improve power usage from the energy associated withto fit application needs instead of effectiveness. Today’s state-of-the- producing, distributing andallocating an entire physical system art data center designs for large disposing of equipment. For thewhose full capability is not utilized. cloud service providers achieve scenarios analyzed, this energyIn this way, virtualization provides a power usage effectiveness levels outlay adds about 10 percent totool for IT departments to narrow the as low as 1.1 to 1.2.15 This efficiency the footprint from IT operations.efficiency gap between on-premise gain could reduce power consumption The total hardware impact dependsdeployment and a multi-tenant cloud over traditional enterprise data heavily on the type of equipment,service. centers by 40 percent through data refresh cycles and end-of-lifeData Center Efficiency center design alone. Innovations practices utilized. By optimizingData center design—the way facilities such as modular container design, hardware selection, managementare physically constructed, equipped cooling that relies on outside air or and disposal, cloud providers canwith IT and supporting infrastructure, water evaporation, or advanced power outperform on-premise IT in termsand managed—has a major impact on management through power supply of environmental impact.the energy use for a given amount of optimization, are all approaches that • Cloud providers are more likelycomputing power. A common measure have significantly improved power to take an active role in tailoringof how efficiently a data center usage effectiveness in data centers. hardware components to theuses its power is called power usage As cloud computing gains broader specific needs of the services theyeffectiveness ratio (PUE). adoption and the share of data run. By collaborating with suppliersPower usage effectiveness is defined processing performed by modern on specification and design ofas the ratio of overall power drawn data center facilities increases, servers and other equipment forby the data center facility to the the industry’s PUE averages should maximum efficiency, they realizepower delivered to IT hardware.12 For improve. In parallel, new data center benefits that are too complex forexample, a power usage effectiveness designs continue to push the envelope most corporate IT departments toof 1.5 means that for every 1 kWh of on driving greater efficiencies. consumed by IT hardware, the These two trends will drive greater • Application code and configurationdata center must draw 1.5 kWh of efficiency in data centers. provide additional opportunitiesenergy, with 0.5 kWh used for cooling for efficiency gains—with cloudof IT equipment, transforming and providers more likely to takeconditioning the grid power, lighting advantage of them. Developersand other non-IT uses. Standardizing can write applications with moreand measuring average power usage efficient processing, memoryeffectiveness across companies utilization and data fetches,can be difficult. However, the US ultimately resulting in additionalEnvironmental Protection Agency savings of physical consumption of central processing unit (CPU), storage, memory and network. The result is that less physical infrastructure is needed to deliver a given application workload. 8
  10. 10. Generally speaking, cloud computing from low-carbon electricity sources, drives the efficiency of IT with such as hydropower or wind energy. unprecedented economies of scale, This can be accomplished by selecting higher sophistication and strong a site in a utility region with a lower incentives to create ongoing carbon emission factor or by actively efficiencies and continuous purchasing or generating renewable improvement. Cloud providers spend electricity. a significant share of their company’s The difference in location can have a operational expense on IT—much more significant impact. For example, data than an average corporation with its centers in the US Northwest (where own IT department. This circumstance hydroelectric generation is common) leads to an increased focus on cost run on power with roughly half the and efficiency improvement, driving carbon intensity of the electricity that optimization of data center and powers data centers in the Midwest application performance beyond (where coal power is common).16 For a what many businesses can achieve large data center with 50,000 servers, on their own. Leading cloud providers the difference can be equivalent to will simultaneously address energy the carbon emissions from thousands consumption in a variety of ways, of cars. whether through application code optimization, data center temperature Managing carbon intensity through management, server decommissioning data center location and power policies or other previously described sourcing strategies, in addition to approaches. improving energy efficiency associated with running cloud applications, Apart from efficiency improvements, gives cloud providers a powerful lever cloud providers as well as corporate to further minimize their carbon IT departments can reduce carbon footprint. emissions by powering data centers9
  11. 11. Case Study – Global Consumer Goods CompanyTo further validate the findings produced in and Europe already benefits from majorthis study about the reduced energy use and economies of scale, with emissions per user farenvironmental impact of cloud computing, lower than any small or mid-size deployment.Accenture and WSP Environment & Energy However, the analysis revealed that moving toworked with a global consumer goods a cloud solution would save energy and furthercompany to estimate the potential for reduce carbon emissions by 32 improved carbon footprint after moving The results are in line with the predicted carbonemail and messaging services from its current savings for large deployments (30 to 60 percentdata centers to Microsoft’s cloud-based reduction) and help confirm the findings of theExchange Online offering. primary research study. The cloud maintainsThe analysis focused on the company’s a strong efficiency margin over on-premiseoperations in North America and Europe. solutions, even for efficiently operated, large-The current large on-premise deployment scale deployments similar to that of this globalof roughly 50,000 users in North America company.Comparison of On-Premise and Cloud Deploymentfor a Global Consumer Goods CompanyMicrosoft ExchangeOn-premise vs. Cloud Comparison,CO2e per user = estimated decrease 32% with Microsoft Cloud On-Premise Microsoft Cloud 10
  12. 12. Conclusion & OutlookExpanding the Cloud companies’ applications, overall aggregate IT efficiency advantagesWhat will be the environmental net emissions will decrease when in one stroke, instead of investingimpact if cloud-based solutions customers replace existing on-premise in gradual improvements of on-are widely adopted by businesses servers with cloud services. Thus, premise infrastructure over replace current on-premise organizations that plan to reduce • At the data center level, clouddeployments? energy use and improve their carbon computing’s growth and drive footprint can consider migratingTo illustrate the findings from this toward consolidation and to the cloud as an importantstudy in an example, it is possible to industrialization will pave the way means for improving industry-wideestimate the potential carbon savings for further scale and efficiency. environmental sustainability.assuming all US companies with • At the application development100 to 10,000 employees were using Further Improvements level, software engineers will beMicrosoft Exchange and would switch This study’s finding that companies challenged to code more efficientfrom on-premise email servers to the can reduce their carbon emissions applications.corresponding cloud solution.17 For by 30 to 90 percent by switchingthis scenario, the reduction of carbon to a cloud infrastructure is certainly As the efficiency of cloud computingemissions would be equivalent to the impressive. As impressive as these increases, more services will developemissions saved from permanently numbers are, the cloud’s efficiency and while each service or transactionremoving about 100,000 passenger is likely to improve even more over will continue to use less energy,cars from the road.18 time. Cloud computing is rapidly there is a strong possibility that, in expanding; demand is increasing and aggregate, computing will use moreThis number represents the impact of energy over time. The challenge is providers are ramping up extra serversjust a single business application for a to ensure that the services provided to meet predicted future capacitythird of the total US workforce. When in the cloud actually replace current requirements. As more customersconsidered on a global scale and activities of higher carbon intensity. become cloud users, greateracross an entire spectrum of business As an analogy, a study on music economies of scale will be reachedapplications, the potential impact is distribution shifting to an online and cloud providers will be able tovery impressive. model demonstrated significant more accurately predict capacityThese gains will be accelerated by for computing demand. carbon savings—as long as consumersboth Platform-as-a-Service (PaaS) do not also burn the downloaded As Microsoft and other providers build music onto CDs.19and Infrastructure-as-a-Service more data centers based on leading-(IaaS) offerings, Microsoft’s Windows Cloud computing has enormous edge designs, and retrofit older dataAzure® services providing an example potential to transform the world centers, average PUE will continuefor both. As public clouds, such of IT—reducing costs, improving to improve and per-user footprint ofservices allow any IT department efficiency and business agility, and cloud business applications will shrinkor independent software vendor to contributing to a more sustainable further over time.develop cloud-based applications world. This study confirms thatand run them on highly efficient Current technology and practices cloud computing can reduce carboninfrastructures. The entire IT industry, will also evolve as the data center emissions by 30 to 90 percent forincluding users and providers, and cloud market develops further. major business applications today andwill thus be able to reduce its The following trends are likely: that future energy savings are likelyenvironmental impact through cloud as cloud computing continues to • At the macro-economic level,computing. Alternative architectures evolve. Companies who adopt cloud cloud computing will help achieveto large-scale public clouds—including computing will accrue the inherent economies of scale by centralizingprivate clouds, community clouds business benefits of this technology, computing power and improvingand hybrid architectures—can all be and will also play a crucial role access to variable capacity at aexpected to yield efficiency gains of in making IT more sustainable more affordable cost.varying dimensions. by significantly reducing energy • At the corporate IT leadershipAlthough the carbon emissions of consumption. level, moving to the cloud willcloud providers will increase as they allow a company to benefit fromrun a growing percentage of other11
  13. 13. AppendixModel Overview • Secondary server consumption data Related Environmental Research.• The study quantified Microsoft was derived from industry averages CEC-500-2005-110-F. August Exchange, Microsoft SharePoint and based on J. G. Koomey, “Estimating 5, 2005. And from Christopher Microsoft Dynamics CRM application Total Power Consumption by R. Hannemann, Van P. Carey, fulfillment activities for both cloud Servers in the U.S. and the World” – Amip J. Shah, Chandrakant Patel, and on-premise scenarios by dividing February 15, 2007; and GreenGrid. "Lifetime energy consumption of the total energy consumption and an enterprise server," ISEE, pp.1-5, • Time period considered: a one-year resulting carbon footprint against the 2008 IEEE International Symposium application licensing or subscription number of active users for a on Electronics and the Environment, agreement. given application. 2008. • GHG emissions (“carbon• The Microsoft Dynamics CRM results emissions”) included are stated Process Energy for in Figure 1 are based as carbon dioxide equivalent IT Infrastructure on the planned cloud installation (CO2e) emissions and take into • Power consumption of Microsoft’s operating at target capacity. account the six primary GHG gases servers was based on direct power• The model was independently including, CO2 (carbon dioxide), measurement of application-specific developed based on ISO 14044 SF6 (sulphur hexafluoride), CH4 server racks from Microsoft data guidelines for Life Cycle Assessment, (methane), N2O (nitrous oxide), centers. BSI PAS 2050 Specifications for HFCs (hydrofluorocarbons), PFCs • Estimated power consumption the Assessment of Greenhouse (perfluorocarbons). of servers within the on-premise gas (GHG) Emissions of Goods • The study includes the use phase of environment was based on and Services, and the WRI/WBCSD the product by the customer. While industry-standard figures provided GHG Protocol. use is assumed to be the same by Hewlett Packard and verified• The study and related analytical rate for cloud and on-premise, the by Accenture and Avanade using modeling builds upon the work efficiency and energy consumption specific server configuration sizing previously completed by Accenture associated with the two scenarios calculations. A mixture of different and WSP Environment & Energy to are different. vendors on-premise systems was assess the carbon impacts of Digital assessed, rather than any single Materials server product. Distribution for Microsoft Volume • Primary materials included in the Licensing of Microsoft Office. • The model includes essential power study consisted of servers and• The aggregated results in this report related network equipment used for critical IT environment and have been calculated based on a to host an application. Embodied utilizes a Microsoft data center- scope limited to North American emissions from physical hardware specific power usage effectiveness and European regions. Customers were estimated based on the (PUE) ratio and an organization- operating in different regions will be weight and composition of each type specific on-premise PUE ratio subject to different carbon emission component. based upon EPA, Green Grid and J.G. factors and specific data center Koomey research. • Embodied emissions from physical utilization rates that could affect the • A storage consumption and network infrastructure included servers, but findings of a similar study. usage efficiency ratio was also used, not facilities and other equipment.• Primary data was provided by based upon Microsoft data and • Emissions related to the material EPA, Green Grid and J. G. Koomey Microsoft, Accenture and Avanade manufacture, assembly and research, validated by Accenture (using actual measurements or recovery of servers and networking and Avanade. conservative estimates) for cloud and equipment are based on a 3.5- on-premise scenarios. • For on-premise scenarios, a server year refresh rate for data center• Secondary data for materials hardware. Life Cycle Inventory of redundancy factor of 2X was was derived from the EcoInvent a server derived from Masanet E., assumed. For cloud, the model relies database and other publicly available et al. ‘Optimization of Product Life on Microsoft’s actual server counts databases collated Cycles to Reduce Greenhouse Gas which include redundancies to meet in SimaPro. Emissions in California.’ California corresponding service levels. Energy Commission, PIER Energy- 12
  14. 14. Supply Chain Logistics & Model Exclusions Microsoft Project Sponsorship:Distribution The model used in the research study Rob Bernard, Chief Environmental• Emission factors for transportation excluded the following factors: Strategist were derived from the WRI/WBCSD • Energy consumed during software Francois Ajenstat, Senior Director GHG Protocol CO2 emissions from development. Environmental Sustainability Mobile Sources. • Tertiary suppliers and process Mark Aggar, Environmental• Emissions were calculated based materials that are not significant Technologist on frequency, modes, distance and (i.e., that do not constitute an input weight (ton-kilometers) of the to 95 percent of the product or Accenture Authors and Key hardware. process). Contributors:• Servers are assumed to be • Offsetting of emissions from any Dave Abood, Managing Director, manufactured in Asia and other part of the supply chain. Sustainability Services NA transported by marine freight to North America or Europe. • Embodied energy of capital Robin Murdoch, Senior Executive, equipment, transportation vehicles, Cloud StrategyEnd-of-Life (EoL) Processes buildings and their energy use Stephane N’Diaye, Senior Manager,• End-of-life calculations include the not directly related to servers and Sustainability Services NA emissions associated with recycling associated equipment. and land filling IT equipment David Albano, Manager, Management • Maintenance of capital equipment. Consulting, Sustainability amortized over the useful life of the equipment. • Refrigerants (except where used Andri Kofmehl, Manager, Management in the primary production of raw Consulting, Sustainability• The study used a conservative inputs). assumption of 20 percent recycling Teresa Tung, Manager, Accenture and recovery for servers and Technology Labs network equipment. Ari van Schilfgaarde, Consultant, Management Consulting, Sustainability WSP Environment & Energy Authors and Key Contributors: Andrew Armstrong, Vice President Josh Whitney, Senior Project Director13
  15. 15. 1 “On-premise" refers to running an IT 8 Energy use to transmit data between users 11 The Green Grid. Five Ways to Reduce Dataapplication on an organization’s own servers, and servers was not modeled in detail. For the Center Server Power Consumption. 2008.either in an office space or a corporate data type of applications analyzed in this study, 12 The Green Grid. Green Grid Data Centercenter rather than on a shared cloud or hosting network equipment typically consumes around Power Efficiency Metrics: PUE and DCiE. 2008.infrastructure provided by another company. ten times less energy than servers and is thus not considered a very significant factor. 13 US Environmental Protection Agency (EPA).2 Microsoft’s cloud-based Exchange and The greater distances data travels in a cloud ENERGY STAR Data Center Infrastructure RatingSharePoint offerings (Exchange Online and scenario may be more than offset by low Development Update. 2009.SharePoint Online) are both a part of the utilization of corporate network equipment or 14 US Environmental Protection Agency (EPA).Business Productivity Online Standard Suite employees accessing corporate servers remotely.(BPOS) and are sold either as a bundled Report to Congress on Server and Data Center However, when analyzing the environmentalbusiness solution or individually, depending Energy Efficiency. 2007. footprint of data-intensive (consumer)on customer preference. Specific on-premise 15 Microsoft. Microsoft’s Top 10 Business applications, such as music download orversions analyzed were Microsoft Exchange video streaming, data transfer contributes Practices for Environmentally Sustainable2007, Microsoft SharePoint 2007, and a significant share to the overall footprint Data Centers. 2009.Microsoft Dynamics CRM 4.0. and requires more in-depth analysis. 16 eGrid. GHG Annual Output Emission Rates.3 Accenture and UN Global Compact. A New 9 Microsoft’s cloud-based Exchange and 2008.Era of Sustainability. 2010. SharePoint offerings (Exchange Online and 17 Assuming that the number of email4 Global e-Sustainability Initiative (GeSI). SharePoint Online) are both a part of the accounts is roughly the same as the number ofSMART 2020: Enabling the Low Carbon Business Productivity Online Standard Suite employees and that companies either retire orEconomy in the Information Age. 2008. (BPOS) and are sold either as a bundled re-allocate the on-premise server capacity that5 Microsoft Global Foundation Services. business solution or individually, depending was dedicated to email, calendar and contacts. on customer preference. Specific on-premiseA Holistic Approach to Energy Efficiency Using employee numbers from US Census data. versions analyzed were Microsoft Exchangein Data Centers. 2010. 18 According to the US EPA Greenhouse Gas 2007, Microsoft SharePoint 2007, and6 Accenture and WSP. Demonstrating the Microsoft Dynamics CRM 4.0. Equivalencies Calculator.Benefits of Electronic Software Distribution. 10 Silicon Valley Leadership Group. Data Center 19 Weber, Koomey, Matthews. The Energy and2009. Energy Forecast. 2008. Climate Change Impacts of Different Music7 Gloabal e-Sustainability Initiative (GeSI). IDC. The Economics of Virtualization: Moving Delivery Methods. 2009.An Assessment Methodology. 2010. Toward an Application-Based Cost Model. 2009.” – 14
  16. 16. About Accenture About WSP Environment & About MicrosoftAccenture is a global management Energy Founded in 1975, Microsoft is theconsulting, technology services WSP Environment & Energy worldwide leader in software, servicesand outsourcing company, with is one of the world’s leading and solutions that help people andapproximately 204,000 employees global consultancies, delivering businesses realize their full potential.serving clients in more than 120 solutions to environmental, With 89,000 employees acrosscountries. Combining unparalleled energy, and sustainability issues. its business divisions and globalexperience, comprehensive capabilities With over 1,000 people across 65 subsidiaries, the company generatedacross all industries and business offices globally, WSP Environment revenues of US$ 62.5 billion infunctions, and extensive research & Energy offers a full-service fiscal year 2010. Its home pageon the world’s most successful consulting practice to a range of is, Accenture collaborates commercial and industrial clients,with clients to help them become many of whom are Fortune 500high-performance businesses and and FTSE 250 companies. WSPgovernments. The company generated helps its clients increase businessnet revenues of US$21.6 billion for the performance through processfiscal year ended Aug. 31, 2010. Its improvement, risk mitigation,home page is and design and implementation of sustainable business practices. WSP Environment & Energy is part of WSP Group plc. Its home page is © 2010 AccentureAll rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.This document makes referenceto trademarks that may beowned by others. The use of suchtrademarks herein is not an assertionof ownership of such trademarksby Accenture and is not intendedto represent or imply the existenceof an association between Accentureand the lawful owners of suchtrademarks.Copyright © 2010 WSPEnvironment & Energy.