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Measuring the Business Value of Green Datacenters

HP ProLiant G6 Servers Intel
By : HP ProLiant G6 Servers Intel
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Published : Oct 19, 2009
Length : 13
Type : White Paper
 
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Overview :
Today, policy and business leaders are reaching a consensus that industry must address rising greenhouse gas (GHG) emissions. Leading enterprises are now turning to the practical challenge of determining how, how much, and at what cost to reduce emissions. Many are quickly realizing that their information and communication technology infrastructure offers a means to both abate GHG and reduce costs with the right incremental capital investments. That is, unlike investments in alternative transportation or power generation options, investments to develop higher performance and utilization of information and communication technology abate GHG at a negative cost. The process of improving information technology and datacenter efficiency not only reduces GHG emissions but also reduces cost for the enterprise. This means that the savings or business value derived from improvements far outstrips the incremental capital costs of "greening" the datacenter. Green IT means business improvement.
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Analog Communications , Business Management , Data Center Design and Management , Electromechanical & Mechanical , Electronic Design Automation , Green Computing , IT Spending , Infrastructure , Integrated Circuits and Semiconductors , Power Sources & Conditioning Devices , Return On Investment , Server Hardware , Server Virtualization , Servers , Total Cost of Ownership , eProcurement
 
Today, policy and business leaders are reaching a consensus that industry must address rising greenhouse gas (GHG) emissions. Leading enterprises are now turning to the practical challenge of determining how, how much, and at what cost to reduce emissions. Many are quickly realizing that their information and communication technology infrastructure offers a means to both abate GHG and reduce costs with the right incremental capital investments. That is, unlike investments in alternative transportation or power generation options, investments to develop higher performance and utilization of information and communication technology abate GHG at a negative cost. The process of improving information technology and datacenter efficiency not only reduces GHG emissions but also reduces cost for the enterprise. This means that the savings or business value derived from improvements far outstrips the incremental capital costs of "greening" the datacenter. Green IT means business improvement. Firms that rank highest among the "Global 100 Most Sustainable Corporations in the World," such as Amazon, Toyota, and Nike, have realized that focusing on limiting energy calories in the datacenter and elsewhere pays profitability dividends on the financial side. IDC research indicates that companies reducing their metric tons of carbon per datacenter workload by a factor of 55% also incurred 35% less cost per user session on a server. A number of phenomena are coming together now to heighten the focus on energy savings in the datacenter. IDC research has shown that: Server energy demand doubled from 2000 to 2005. Power used by servers, cooling, and ancillary infrastructure in 2005 accounted for about 1.2% of the United States' electrical usage. Servers, cooling, and ancillary infrastructure used the equivalent in capacity terms of about five 1,000MW power plants. Despite feeling concern over energy use and environmental impact, IT managers in these times must prioritize on reducing operational expense and managing the escalating costs of infrastructure and IT staff. Cost reduction and better protection from the risks posed by downtime take precedence over environmental motives.
    
 
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