by Angela Miller
I had a very interesting conversation with David Merrill today about one of the significant challenges that CIOs face: the economics of energy efficiency in the data center. Mr. Merrill (in my humble opinion) is a thought leader in Storage Economics, and for the last 18 months he’s been blogging about this discipline for Hitachi Data Systems*. He had some interesting tidbits regarding energy usage in data centers, the most compelling of which for me was that the typical enterprise data center now consumes 50% of the company’s electric bill and nearly 50% of that is due to storage. He backed these numbers up with studies from Gartner (March 2007) and ESG (July 2007).

Pondering these statistics lead to a conversation about the economics of energy efficiency and the business case for green computing. From Mr. Merrill’s perspective, the business case for the typical CIO would be built on cost savings from energy efficiency, cooling optimization, and from the floor space savings that could be realized from implementing a sustainable infrastructure strategy.

“CIOs typically choose energy efficiency not for moral consciousness or being chic or trendy, but because it makes economic sense”. — David Merrill

My thoughts went to challenging information technology departments to take green computing further than the straight energy costs and how instead to sell the business case for environmental benefits. His response was realistic: environmental benefits tend to be in addition to the bottom line economics, either through compliance with laws, or certification, or deferring spending on future solutions. In other words, for a CIO, environmental choices would rarely justify a business case on their own.

We talked about hybrid vehicle sales in the United States as a case study: while some individuals invested in hybrid vehicles purely as an environmental statement; the sales of hybrids, especially in states like California, really escalated when the gas prices rose substantially and drove consumers to make practical, economic choices.

In some parts of the world, especially in Europe or in densely-populated small regions like New England, Singapore, and Hong Kong for example, CIOs will start to face the reality that energy prices will drive up their IT budgets substantially. The local energy utility may either charge escalating utility rates or be unable to deliver energy to meet the company’s growing demands.

For these CIOs, the challenges of space, power, and cooling constraints drive them to consider green computing strategies to squeeze the maximum benefit from their infrastructure. So like the substantial growth in purchases of hybrid vehicles accompanied substantial increases in gasoline prices, so too will green computing initiatives likely increase as IT teams strategize to overcome their energy, space, and cooling challenges and their unsustainable consumption model.

Dig deeper on the issues:

Storage.ITworld.com article on David Merrill
*I am a former employee of HDS. This post is in no way affiliated with HDS.