Responsibility2 TM

An Efficient IT Strategy

Key Programme Overview

December 2007

Your company needs you….

The Facts: Rising energy and carbon costs to UK plc

UK energy costs rising year on year UK energy costs have risen 266% since the winter of 2002

European emissions trading legislation proved a major cost to UK organisations in 2005 and is expected to grow

£1.7 billion spent on trading vouchers in 2005/06

Carbon Reduction Commitment (CRC) is a mandatory auction-based emissions trading scheme for non-energy intensive business and public sectors

Reductions of 1.1 million tonnes of carbon per year by 2020

Why should IT be involved?

Capacity under pressure

Energy costs are expected to grow from 10% to 30% of IT budget

Rapid growth in technology (storage, servers, data)

IT innovation could make a big difference to

overall environmental impact and can enable

organisational behaviour change

IT and global energy consumption

IT now generates 2% of global carbon emissionsGartner Symposium/ITxpo 2007

Aviation is responsible for some 2-3% of man-made carbon dioxide emissions

IT versus Airline efficiency

Easyjet sell on average 85% of seats on higher density planesEasyJet high efficiency = lower emissions = low fares

Average server utilisation 13 per centIntel 2007

An expanding Digital Universe

The global airline industry shows no sign of reducing its activities; with a 5%

increase in the number of flights scheduled for May 2007

OAG 2007

Information that is either created or captured in digital form and then replicated in 2006 – is 161 exabytes, growing to 988 exabytes in 2010, representing a compound annual growth rate (CAGR) of 57% - IDC 2007

Does Green IT really exist?

Green IT = Efficient IT(That’s what the CFO is going to be looking at)

Logicalis believes the phrase ‘Green IT’ reflects a strategic imperative for ensuring the maximum efficiency of every IT deployment, and using IT to influence the efficiency of people and other business resources.

Why it’s not naive to be GREEN

Competitiveness Process Costs

Overhead Costs

Economic Pressures Operational Expenditure

Real Estate

Transport and travel

Energy

IT Systems

Capital Expenditure

Projects

Purchases

Environmental Impact Culture

Consumption

Legislation

Co2 ratings

Operate vs. InnovateThe IT Director Challenge

Operate

Innovate

Capacity

Com

plexityCap

abili

ty 90%

10%

Technology complexity creates increased pressure on cost of ownership and time-to-change

Technology expansion complexity and pressures on

physical space, energy/cooling cost and capacity

Technology innovation creates the challenge of continued skills change and complex integration

85%

Operate

15%

The Efficiency Cycle of Opportunities

Reduced Operational Costs

Business Efficiency

Framework

ICT Efficiencies

Operational simplification

Increased resource utilisation

Energy consumption reduction

Process Efficiencies

Real-time workflow

Process Automation

Enterprise Search

Real-time business intelligence

Cultural Efficiencies

Remote working practices

Collaborative working platforms

Virtual meeting capabilities

Organisational Efficiencies

Real-time communication

Increased real-estate utilisation

Reduced environmental wastage

The Inefficient Truth

86% of ICT professionals do not know the carbon footprint of their department’s activities

50% have never been asked to focus on energy efficiency as a part of an organisation-wide initiative

Only 1% of professionals considered vendor environmental information to be excellent whilst 60% said it was poor or confusing

94% of organisations do not provide incentives to the ICT department to act in an environmentally friendly way

66% of the departments have already filled over 75% of the physical floor space of DC

61% expect to reach storage capacity within 24 months

IT as a Strategic Supply ChainCan you SCOR Your IT Delivery?

DeliveryReliability

at the correct time, at the perfect quantity?

Responsivenesshow quickly the supply chain delivers

FlexibilityHow quickly the supply chain responds

to change

CostCosts associated with operating the

supply chain

Asset ManagementHow effectively you manage assets to

cope with demand

SCOR: Supply Chain Operations Reference ModelCopyright: PRTM

IT as a Strategic Supply ChainStrategies for Change

Fix what isn’t working before focussing on the next-generation solutions Understand what eats up most of your costs

Processing / Storage growth?

Operational complexity?

Supplier sprawl?

Connect IT with the business and re-balance supply and demand Understand how IT can help drive the business

Ensure core platforms are able to efficiently meet demand

Look beyond the technology into the ‘softer’ challenges Data Management

Process and Systems Automation

Application Consolidation

Skills gap within the organisation can limit overall effectiveness Most suitable strategy may involve major change

Today’s IT supply chainComplexity, Capacity and Cost

Every product is now a shade of green

The Environmental Life Cycle looks at the ‘total environmental impact’

Product Energy Efficiency

Operational Best Practice

Business process benefits

Disposal

A storage system 1% more efficient than a competitor, but storing rubbish, is not efficient!

Responsibility2 TM Environmental Life Cycle

ReportMonitorOptimiseAuditEducate

Responsibility2 TM Environmental Life Cycle

Responsibility2 TM from Logicalis outlines a 5-stage best-practice sustainability programme for environmental efficiency

ReportMonitor

Collect qualitative data on green

initiatives

Assess actual savings from major

consolidation projects

Consolidate into a single environmental

dashboard

Optimise

Consolidate everything. Data Centre, Servers,

Storage, Branches etc.

Focus on environmental

operation from data centre to the desktop

Assess business processes against

potential technology innovation (home

working etc.)

Audit

Identify key IT energy consumers, audit IT systems utilisation

Use proven methodologies to

assess options e.g. IBM Zodiac/COBRA

Publish environmental

efficiency targets for IT

Educate

Provide education to IT as to the impact of energy use in terms

of CO2 and cost

Identify IT Environment Leader

Connect IT with organisation wide

Environmental Programs (14001)

On-going environmental plan

Efficiencies – CO2 saved, energy saved, technology resources

saved, floor space saved, money saved

Communicate

Responsibility2: 10 Areas for Efficient IT

1. Processor (Server) Virtualisation

2. Storage Virtualisation & Consolidation

3. Information Life Cycle Management (ILM)

4. Application Consolidation

5. Desktop Power Management & Thin Client Technology

6. Data Centre Supporting Appliance Consolidation

7. Branch/Remote Office Consolidation

8. Unified Communications and Video Collaboration

9. Shared Service Buildings

10. Digital Forms

Responsibility2 sets out ten key measures that users of IT systems can take to ensure maximum efficiency.

System z – The Invisible Hulk?

"We're up against the wall on floor space, and, therefore, power management. We have a strict one-in, one-out policy. No new server comes in without an old server coming out - except on our z/Series [plus] z/VM [plus] Linux environment. If people want services I can deliver on Linux, it's about an hour and they have a server.“

Jim Meine, Minnesota County Government

Industry’s first real-time environmental dashboard

Enabling unequivocal demonstration of tangible CO2, and energy savings realised from energy efficient IT solutions and programmes.

Value of going ‘Efficient’

The CIO and IT department must adopt a responsible position

Cutting emissions and energy use

Improving the efficiency of IT deployment

The CIO should promote this strategy to the business

IT as a positive carbon use change agent

An organisation that promotes responsible IT use

The CIO and IT department should demonstrate savings to the business in terms of energy saving and cost saving

Market and PR their vision to the business, customers and markets

The CIO and IT department must demonstrate leadership and vision

Thank you