Embracing Change with Green IT


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Greg Aldrich presents: Applied Materials' IT organization plays a critical role in helping the company reduce its greenhouse gas emissions. This case study addresses how IT is contributing to Applied's green strategy through innovative programs from the data center to the desk top, from collaboration tools to socially responsible outsourcing.

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Embracing Change with Green IT

  1. 1. Applied Materials External Use Embracing Change with Green IT An Applied Materials Case Study Greg Aldrich Applied Materials IT Production Services October 16, 2008
  2. 2. Green IT Applied Materials External Use 2 Applied Materials Overview  Founded 1967  Annual Revenue (2007 approx) $9.7 Billion  Worldwide Employees (approx) 14,500  Worldwide Locations 18 Countries The Global Leader in Nanomanufacturing Technology Solutions  Semiconductor chips  Flat panel displays  Solar photovoltaic cells  Flexible electronics  Energy efficient glass
  3. 3. Green IT Applied Materials External Use 3 Cost per transistor FIRST Cost per area THEN Cost per watt NOW Driving Down Cost
  4. 4. Green IT Applied Materials External Use 4 Applied Materials Worldwide Research, Development and Engineering and/or Manufacturing Centers: Sales and/or Service Offices Israel 108 Worldwide Locations Japan India Korea Europe China Taiwan North America South East Asia
  5. 5. Green IT Applied Materials External Use 5 Environmental Stewardship  Company commitment to reducing carbon footprint through… – Environment focused products – Improving energy efficiency – Reducing the impact of operations  Goal: 50,000 ton CO2 reduction by 2012
  6. 6. Green IT Applied Materials External Use 6 IT Commitment  Goal: 10,000 ton Carbon footprint reduction per year by 2012  20% of corporate commitment  Help lead Applied’s Green Strategy  Achieved 3,000 ton per year reduction to date
  7. 7. Green IT Applied Materials External Use 7 Green IT at Applied Strategy  Started with a formal “Green IT” Program to gain focus  Now Green is “business as usual” – Creating a “Green culture” – Green by design – All projects have green transparency Initiatives  PC Refresh  Server Virtualization  Data Center Optimization  Server Room Consolidation  Enhanced Collaboration Tools  Telepresence  Enabling the remote worker (Applied Anywhere)  Improved multi-function devices  Socially Responsible Outsourcing
  8. 8. Green IT Applied Materials External Use 8 PC Refresh  Transitioned notebooks and desktops to more energy-efficient models – Energy Star compliant models  Established aggressive hibernation settings – 10 minutes versus 20  Replaced broken CRTs with more efficient LCDs  13,000 new systems deployed to date  Combined savings of 750,000 kWh/month  Phased approach to manage capital outlays
  9. 9. Green IT Applied Materials External Use 9 Server Virtualization  Reduces hardware footprint  Improves use of existing resources  Speeds deployment of new “virtual servers”  500 physical servers now virtual machines on just 40  Qualified for Austin Energy rebate up to $200K  Achieved same computing power at half the cost  Cut time to deploy new servers from 3 days to 3 hours
  10. 10. Green IT Applied Materials External Use 10 Data Center Optimization  9,000 square feet  Optimize air flow and reduce cooling requirements  Retired older equipment through Austin Energy’s rebate program  Instituted hot aisle, cold aisle structure  Moved vents, cooling equipment  Installed a high-efficiency membrane roof  Saved 37.1 kWh per year
  11. 11. Green IT Applied Materials External Use 11 Server Room Consolidation Santa Clara Headquarters  Consolidated 27 rooms down to 1  Moved 85 physical servers and 50 Terabytes of storage  Leveraged self-contained hot aisle environment  Achieved a 35% reduction in energy
  12. 12. Green IT Applied Materials External Use 12 Collaboration Tools  Reduce greenhouse gases through reduced travel  Improve collaboration and productivity  Microsoft Office Communicator 2007  Microsoft Office SharePoint Server  Web and Audio conferencing  Enhanced video conferencing
  13. 13. Green IT Applied Materials External Use 13 Telepresence: The next level of collaboration  High definition, lifelike meeting experience  Increased global coordination  Greater customer intimacy  Increases productive hours of executives  ROI in one year  Four sites in Austin, Santa Clara and Israel  Expansion planned in Asia
  14. 14. Green IT Applied Materials External Use 14 “Applied Anywhere”  Encourages employees to work from anywhere – Home, office, customer and supplier locations  Reduces commuting  Enhances productivity  Increases customer intimacy  Raises morale  30 % IT participation  Deployed supporting technologies – Home routers with physical IP phones – Portable IP Softphones – Web and Audio Conferencing  Reduces facilities and real estate requirements
  15. 15. Green IT Applied Materials External Use 15 Print/Fax/Copies  Energy efficient models  Double sided  “Think before you print”  Reduced printing YTD by about 50%  Carbon reduction in toner savings
  16. 16. Green IT Applied Materials External Use 16 Socially Responsible Outsourcing  Promote awareness of social responsibility among our managed services partners  Drive green strategies beyond our organizations  Include criteria in supplier selection and evaluations  Focus Areas – Labor – Health and Safety – Environmental – Management Systems – Ethics
  17. 17. Green IT Applied Materials External Use 17 Reuse and Recycling  Formal corporate program focused on asset recovery  Covers any item no longer needed by the business  Three strategies – Reuse within Applied – Resale – Recycle  PCs, CRT monitors, servers and server racks
  18. 18. Green IT Applied Materials External Use 18 Carbon Footprint Reduction *Red Box denotes projections. 0 100 200 300 400 500 600 700 800 900 TonsofCO2 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Quarterly Carbon Dioxide Footprint Reduction PDC Telepresence Telepresence Data Center Optimization PC Refresh Server Refresh MFD Deployment GIS Applied Anywhere
  19. 19. Green IT Applied Materials External Use 19 Get Started Now  Identify your top energy users  Leverage your technology refresh cycle  Make being green a community effort  Change behaviors and technology
  20. 20. Green IT Applied Materials External Use 20
  21. 21. Green IT Applied Materials External Use 21 Safe Harbor Statement This presentation contains forward-looking statements, including those relating to Applied Materials’ cost-per-watt-reduction strategy, solar business, product capabilities, served markets and growth opportunities, and the solar industry outlook. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to: demand for solar products, which is subject to many factors, including global economic and market conditions, energy costs, government policies and incentives relating to renewable energy, technological innovations and evolving industry standards; the performance of acquired businesses; Applied Materials’ ability to (i) develop, deliver and support its broad range of products, (ii) manage its resources and production capability, (iii) predict the characteristics of, and capitalize on opportunities in, emerging markets, and (iv) attract and retain key employees; and other risks described in Applied Materials’ SEC filings. All forward-looking statements are based on management’s estimates, projections and assumptions as of the date hereof, and Applied Materials undertakes no obligation to update any such statements.
  22. 22. Green IT Applied Materials External Use 22 What’s next for Applied Materials Green IT?  Expand Telepresence use  Proliferate Applied Anywhere and expand to managed services partners  Server virtualization by default  Continue PC refresh cycle  Alternative energy purchases  Enhance collaboration tools
  23. 23. Green IT Applied Materials External Use 23 Benefits of Green Programs  Cost savings  Improved financial performance  Environmental stewardship  Enhanced reputation with stakeholders