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Governing IT in a Green World. December 2, 2008 2:00pm EDT, 11:00am PDT George Spafford, Principal Consultant Pepperweed Consulting, LLC “Optimizing The Business Value of IT” Housekeeping. Submitting questions to speaker

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governing it in a green world

Governing IT in a Green World

December 2, 2008

2:00pm EDT, 11:00am PDT

George Spafford,

Principal Consultant

Pepperweed Consulting, LLC

“Optimizing The Business Value of IT”


Submitting questions to speaker

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Supporting the Organization’s Green Strategy

Potential Risks

Data Centers and Electricity

The Green IT Process

Management Opportunities

Technical Opportunities

Continuous Improvement

supporting the organization s green strategy
Supporting the Organization’s Green Strategy

The environment and being “green” is an organizational issue

Management of ecological impacts is a necessary condition

Green needs to support the organization’s goal(s)

The Board establishes the goal(s) for the organization

The Board hires and directs management

This Board-Management linkage is true organizational governance

Management must take the appropriate steps to

Move towards the goal (create value)

Protect the goal (protect value)

Corporate Social Responsibility (CSR) Programs

IT is part of the larger organizational system

IT’s green efforts need the proper context

green it
Green IT

Being “green” means to minimize negative environmental impacts and maximize positive impacts

IT is a key stakeholder for a variety of reasons

Energy usage (our focus today)


IT services that advance the organization

“Green IT” is becoming a buzzword to sell products and services

Gartner terms it “greenwashing”

A lot of conflicting messages and bogus claims

Presentation focus will be on data centers and energy

potential risks
Potential Risks

Increasing Operating Expenses

Travel and logistics costs are skyrocketing

Increasing Energy Costs – increasing faster than budgets

Running Out of Power

Some data centers are being told the grid can’t supply more electricity

Can constrain growth / support of the organization

Building yet another data center with low utilization

Global Warming in General

The cause isn’t the issue

Damage to the Brand

Threat of Increased Regulation

IT Unable to Support the Business

Competition Solving the Riddle First

data centers and electricity
Data Centers and Electricity

In the US, data centers consumed 1.5% of all electricity in 2006 and growing at 12%1

Data centers forecasted to surpass airlines in terms of CO2 emissions in 2020 (due to electricity consumed)

An increase of four fold2

Studies like these increase visibility

Brand impacts

Potential for regulation

A very certain outcome is increased operating costs if left unmanaged

electricity and the environment
Electricity and the Environment

Obviously, IT runs on electricity

Demands are increasing

Produced in large scale predominantly via coal today

Other methods include Hydroelectric, Natural Gas, Nuclear

Pros and Cons with Each

Coal burning plants have come a long way in terms of lowering emissions

New renewable energy methods are gaining momentum – solar, wind, wave, geothermal, etc.

Carbon Footprint

Amount of CO2 released into the environment by humans

Carbon Trading – market mechanism that economically incents an organizations to buy and sell carbon credits

Carbon tax – government taxes organizations based on CO2 released

Water Consumption

A lot of water is consumed during power generation

Data centers use water for cooling

Fresh water could very well be a future problem

understanding electrical costs
Understanding Electrical Costs

Servers can be utilized as little as 6% on average1

Data centers can run at 56% of peak performance1

A data center is expensive $20 million and up

Mega data centers can be $200-500 million just for the facility

Improving existing capacity and avoiding building can be very beneficial

One watt of IT power used requires about one watt of cooling

What about your bill? Do you know what it is for IT?

Cost = (Watts x Hours Used) / 1000 x Cost/KW Hr

Problem is that that there are inefficiencies

power consumption
Power Consumption

Chiller 33%

IT Equipment 30%

UPS 18%

Computer Room Air Conditioning (CRAC) 9%

Power DistributionUnits (PDUs) 5%

Humidifiers 3%

Switch / generator 1%

Lighting 1%

Notice how only 30% of each watt actually goes to the IT Equipment.

Out of every 10 watts sent to the data center, only 3 wind up being used by IT equipment.

42% goes to cooling

24% goes to power

the green it process
The Green IT Process

Manage Green IT as a process because:

Inputs and Outputs


Roles and responsibilities

Process Owner

Process Manager

Metrics and reporting

Process integration is vital

“The goal of Green IT is to support the green objectives of the organization as defined by the Board and/or a Corporate Social Responsibility management group.”

green it policy management
Green IT Policy Management

Understand the organization’s position on the environment and corporate social responsibility

Understand the current internal IT situation by assessing

The Data Center

Front Office

Develop policies identifying what is to be done for IT to support the organization

Create and Protect Value

Short- and Long-Term

green it architecture and standards mgt
Green IT Architecture and Standards Mgt

Need to establish and enforce standards

Work with

Technical Management Function (ITIL)

IT Operations Management Function (ITIL)

Network Engineering

Server Engineering

Facilities Engineering


Need a Service Development Life Cycle Mindset

It’s not about servers in isolation

Need to understand the total costs of providing services

green it functional area objective mgt
Green IT Functional Area Objective Mgt

Need to ensure that various IT areas have objectives that align with:

Green IT Objectives

Organization’s Green Strategy




Scheduled Review

After Major Change

green it assessments
Green IT Assessments

Continuous process improvement

Need to understand current state

Identify ideal states

Gaps / opportunities for Improvement

green it metrics
Green IT Metrics

Need baselines!

Power Usage Effectiveness (PUE)

PUE = Total Data Center Facility Power / IT Equipment Power

Total Data Center Power includes everything – PDUs, CRACs, IT Equipment, etc.

IT Equipment Power is just computers, switches, network gear, etc.

Can use to calculate demands

If PUE = 3 and new devices is 100 watts then total energy demands could be 3 x 100 = 300 watts total

Data Center Infrastructure Efficiency (DCiE)

1/PUE or IT Equipment Power / Total Data Center Power

Just a reciprocal but shows what amount of total power is being used by the IT equipment

Understand Actual Usage and Costs

By Service ideally

green it process integrations
Green IT Process Integrations

Green IT must work through other processes

Mandates alone will not work

Need mutual success

Examples leveraging ITIL v3:

Service Strategy

Strategy Generation, Financial Management

Service Design

Service Level, Availability and Capacity Mgt

Service Transition

Change and Service Asset and Configuration Management

Service Operation

Event, Incident, and Problem Management

cultural change
Cultural Change

Set the “Tone From the Top”

Engage the right stakeholders


Externally – consultants, power company, vendors, etc.

Communicate, communicate, communicate


Metrics drive behavior

Revise Job Descriptions

Clearly define responsibilities and targets

Tie compensation to targeted objectives

management opportunities 1
Management Opportunities (1)

Implement IT Asset Management

A discipline whose goal is to optimize the lifecycle of assets

Need to maximize Return on Assets

Understand the Total Cost of Ownership and make decisions accordingly

Recognize the CapX/OpX trade-off

Lowest purchase cost may have highest total cost

Develop Standards for Hardware and Facilities

Effective and Efficient Decommissioning

Avail of government initiatives

Department of Energy

Environmental Protection Agency

State and Local governments (tax credits, bonds, etc.)

Seek out incentives from utilities

Talk to your sales / account representative – they may have incentives for the retirement of servers, etc.

PG&E is offering $150-300 for each server removed due to virtualization

management opportunities 2
Management Opportunities (2)

Carefully establish a data center strategy

Improve existing centers / renovate

Build New DCs

Google built and Amazon is building data centers in Dalles, Oregon to avail of hydroelectric power

Leverage cooler climates, cheaper power, lower climate risks, etc.

Outsource / colocation services

Can you build a DC that is comparable to a $200-500 million facility?

Virtualized DCs

Electricity is 3-4x more expensive in CT than in Idaho

What about peak demand times in NYC vs off-peak in Tokyo?

Financial Management


Truly understand total cost of ownership

IT Service Level

Asset level

Track power consumption relative to IT services rendered

At the least, track the data center’s electrical costs

Understand how business units are consuming what amount of power and totaling what cost?

Drive accountability

management opportunities 3
Management Opportunities (3)

ITIL Capacity Management

Capacity Management is tasked with providing IT resources to the organization in a cost-effective manner.

Need to factor green IT concepts in

Planning for the Future

Tracking Existing Use

Need formal modeling of capacity requirements vs. ballpark estimates

Too much capacity leads to inefficient power utilization

True for UPSes, CRACs, etc

Conduct Annual Power Assessments

Review how power is being used

Look for opportunities to improve

Project Management

Mandate that green requirements be identified in project requests

Ensure compliance to standards at outset and at each control gate

Look for lessons learned

high level technical opportunities

High-Level Technical Opportunities

The 7/21/08 – “Implementing a Green Data Center” Webinar

Provided more technical and focused on opportunities within the data center to reduce energy consumption

technical opportunities 1
Technical Opportunities (1)

Consolidate Applications

Do you really need 20 different financial packages?

Can you reduce the servers and storage?

Identify and Remove Ghosts

20-30% of servers may no longer be generating valuebut till incurring operating expenses1

1 Watt IT Equipment Saved Reduces Cooling 1 Watt

Savings on IT equipment can be a 2-for-1 or even greater

Newer is Typically Better

Some cultures “run until things break”

Some systems are 10-20 years old

Newer has more efficient components, better power management, etc.

Fairly true across the board:

Servers – Can have dramatic savings considering low average computational utilization to begin with

Desktops – Reductions of over 50%

UPSes – reduction of power loss of up to 70% over 15 year old systems1

Chillers –Reductions of 50%2

1 Brill, Kenneth G. "Data Center Dirty Secrets." Forbes. June 30, 2008.

2 The Green Data Center: Steps for the Journey.

technical opportunities 2
Technical Opportunities (2)

Consolidation & Virtualization of Servers

Easy to add/remove servers

Only power up what is needed

Virtualize hosts or even the data center

Data Center Design

Set the temperature no colder than it needs to be

Temperature based on manufacturer recommendations

Do not want to void warranties!

Set on the cool intake side, not the exhaust side

Improve air flow

Utilize hot and cold aisle designs

close leaks, partitions, properly place ducts, cooling tiles, diffusers, etc.

Leverage economizers in the cooling system

Replace old PDUs, Chillers, CRACs, etc.

technical opportunities 3
Technical Opportunities (3)

Pursue Modular Design Approaches

How can we scale over time

We are increasingly zone-centric – not average

Need to evaluate pods

Evolved from electrical component, to board level, to server and now to pod-level

Use Power Management Features

Studies have shown that usage fluctuates on many systems but power consumption does not – this tells us that existing power management features are not being used

Proper configuration can reduce power demands by 20%1

Understand Redundancy Energy Costs of redundancy

Redundant (N+1) systems – spares are consuming power if on

Sometimes hot backups are needed, but not always

Review if clusters / hot spares are always needed


technical opportunities 4
Technical Opportunities (4)

Monitor Power Use

Monitor power to the rack level if possible

Track and trend over time

Distributed Generation / On-site Generation

Augmentation - Supply peak power

Cover power loss from utility

Re-sell power to the utility



Chena hot springs dropped kw/hr cost from $0.30 to $0.06


Solar power

Wind Turbines

More options are appearing weekly!

continuous improvement
Continuous Improvement

The first step is only the beginning of a journey

Needs will change as technologies and the world changes

Leverage metrics where possible to track status

Conduct quarterly reviews of progress

Maintain the tone from the top

Formally schedule reviews to assess the current state and look for new opportunities

new pocket guide the governance of green it
New Pocket Guide – The Governance of Green IT

Available from IT Governance

Covers Governance and Process Considerations

Introduces the Green IT Process in More Detail

Target publish date is December 11, 2008

Pre-orders Now

International order site:

US order site:

resources 1
Resources (1)

The News - Archive, RSS and Email Subscription Instructions

George’s Green IT Resource Page

Mike Ebbers, Alvin Galea, Marc Tu Duy Khiem, and Michael Schaefer. “The Green Data Center – Steps for the Journey” RedPaper Draft (June 2, 2008 Draft)

Uptime Institute

US Department of Energy – Energy Efficiency and Renewable Energy

DOE – Creating Energy Efficient Data Centers

American Society of Heating, Refrigeration and Air-Conditioning Engineers – Technical Committee 9.9

The Data Center Journal

The Green Grid

resources 2
Resources (2)

Simon Mingay. “10 Key Elements of a ‘Green IT’ Strategy”. Gartner. December 2007.

Energy Information Administration. Electric Power Monthly

National Data Center Energy Efficiency Information Program

Lawrence Berkeley National Labs – Data Center Best Practices

Kenneth G Brill. “Data Center Energy Efficiency and Productivity”. The Uptime Institute. 2007.

Cogeneration & On-site Power Production

US Department of Energy – Distributed Energy Program

Chena Hot Springs Geothermal Project

State of California – Distributed Energy Resource Guide

thank you for the privilege of facilitating this webcast

Thank you for the privilege of facilitating this webcast

George Spafford

The News - Archive, RSS and Email Subscription Instructions

(Covers IT management, business, energy, security and a host of other topics)

next green it webcast

Next Green IT Webcast

On 12/15/08 – “Leveraging Software to Improve Energy Efficiency”

thank you for attending

Thank you for attending

If you have any further questions, e-mail

For future Webcasts, visit