Green IT ACC 626 Tifa Han
Green IT
ACC 626Tifa Han
What is Green IT?
• Environmentally sustainable IT– Reducing operating cost and capital cost– Lessening environmental impact
• Commonly Done Through: Vitalizing Servers, Purchasing Energy-efficient Models of Computers…
Why does Green IT fail?
• 2009 Columbus Survey: most of the companies received marks between 32% ~ 37%
Green IT Failure
Limited Scope of the Projects
Green-Washing
Misunderstanding of Green IT Objectives
Limited Scope of the Projects
• Many companies only implemented the Green IT projects to reduce data-center and desktop energy expenditures
• Never took any comprehensive approach• Failed to bring Green IT to a corporate level
Green-Washing
• Green-washing: direct limited effort towards the actual reduction in energy waste yet focusing on the advertisement of the sustainability initiatives
• Consumers felt deceived and manipulated• Companies fail to disclose or consider hidden
trade-offs– Example: Cisco and Verizon advocated companies to
produce their own primary electricity from fossil fuel; less energy cost -> more environmental footprint
Misunderstanding of the Objectives
• Companies inexperienced with Green IT may rush into projects without examining the implications
1.8 tons of raw materials and 240 kilograms of fossil fuel to produce a new server
Result: energy waste and environmental hazard
Failed to consider the life-cycle of the servers: manufacture, transportation, disposal
Missing Link
Intel: refreshes servers over 4 yearsObjective: Change into new energy-efficient models
Value of Green IT
Cost Reduction
Maximizing Return
Public Recognition
• Power Cost• Capital Cost
• Asset Disposal• Legislative
Mechanism
• Shareholder Value
Cost Reduction
• Power and cooling cost• Virtualization• Asset Life Extension
Maximizing Return
• Asset Disposal:– Re-use or re-sell– Can hire Dell, HP, Intechra, Redemtech to do it– WellPoint, Inc. received $49,000 in the first
quarter of 2008 by employing Intechra to dispose and resell its retired IT assets
• Legislative Mechanism– Incentives and penalties – Amount can be significant
Public Recognition
• 2007 EY study: significant positive relation between performance management and the ROE, but not shareholder value
• May be due to miscommunication • Deloitte study shows companies do not communicate the
environmental progress properly to shareholders
• Likely to have significant relation if disclosed properly
Best Practice of Green IT
Green IT Success
Expand the Green IT Realm
Align Green IT with Corporate
Strategic Directions
Develop Metrics and Reporting
Structures
Expanding the Green IT Realm
Asset Lifecycle
Asset Selection
System MaximizationProper Disposal
-Meet environmental standards- Certified products
-Life extension- Mid-life refurbishment
-Reuse-Resell
Aligning Green IT with Corporate Strategic Directions
• Create cross-functional Green IT projects• Intelligent buildings, e-business, airflow configuration…
Develop Metrics and Reporting Structures
Prioritizing Investments
Establish a Baseline
Regular Evaluation of the Green IT
Progress
Create accountability through good governance
Conclusion
Green IT is the future trend of the IT world, and it can create great values for not only the company but also the general society if it is
designed and implemented properly.