Outsourcing Addresses "Green" IT Issues (8-Oct-07)
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Current revision as of 13:58, 25 October 2007
Contents |
MI Summary
Full story: Outsourcing Addresses "Green" IT Issues (8-Oct-07)
Technology outsourcing is currently employed by approximately 50% of businesses; IDC suggests that outsourcing provides companies facing rising energy bills with a number of benefits. It cuts costs because suppliers have access to more efficient data centre technology and can leverage economies of sale across a large number of clients, this can deliver energy savings of up to 40% in the data centre. It also reduces risk by speeding up compliance with incoming regulations and it eliminates the problem of confusion over what constitutes as being green.
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Study paper finds too few companies look to managed hosting to mitigate growing costs of maintaining energy efficient IT infrastructures.
A new study has found too few organisations are looking to managed data centre services as a way of reducing rising costs associated with growing environmental pressures.
"Creating Cost and Efficiency through Outsourcing Hosted Solutions," by analyst firm IDC said the fact only around half of companies host their websites and e-business infrastructure in-house suggests many are missing out on potential benefits.
James Eibisch, research director at IDC's European telecoms and networking group told IT PRO that the remainder have a perception that managed hosting is either more expensive and less secure or offers less control and security, so introducing more risk into the IT infrastructure.
"In my opinion, some of these benefits are illusory," he said. "The costs or designing, building and maintaining data centres in-house are rising and perceived barriers to outsourcing these problems can be overcome by choosing a decent provider."
The increasing pressures felt by IT departments in the areas of rising energy costs and consumption should encourage companies of all sizes to overcome the perceived barriers to managed service adoption, he added.
"By outsourcing they can offload much of the uncertainty of future environmental legislation and regulation to a third party, resulting in a reduction in long-term risk to the company," he said.
"Although today the European Union would like the IT industry to regulate itself, this won't be the case forever. Today, legislation is concentrated on areas such as materials (covered by the "restriction of the use of certain hazardous substances in electrical and electronic equipment" directive or RoHS) and recycling (the "waste electrical and electronic equipment directive or WEEE), but discussions are going on to extend environmental regulation to IT and communications, and companies must consider the future implications of this for their business."
The paper urges organisations to look to hosting providers to exploit economies of scale by sharing data centre infrastructure across customers and reducing overall power consumption and environmental impact.
Fabio Torlini, marketing manager for Rackspace Managed Hosting, which commissioned the white paper, said too much of the 'green IT' debate has been focused on the cost effectiveness of data centre operations.
"It's more to do with looking at the infrastructure management costs, where managing complex data centres can be as expensive as running them in-house," said Torlini.
In April 2007 Rackspace announced its move to a new data centre that will run on environmentally friendly energy to help reduce the company's dependency on fossil fuel, as well as provide a more efficient way to manage its customers' needs. Torlini said Rackspace now also utilises HP ProLiant DL385 servers featuring dual-core AMD Opteron 200 Series processors, which consume less electricity than prior server models.
- Source: ITPro
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Will Outsourcing Help Companies Go Green? (11-Oct-07)
In a post-”Inconvenient Truth” world, companies appear to be putting more thought into conserving energy in their data centers, as this Analyst Perspectives report makes clear. The report cites a recent Sun Microsystems survey in which 75 percent of executives tasked with purchasing data center gear say energy efficiency is a top priority and research from the Digital Reality Trust that 60 percent of companies expect green data center strategies to be part of future capital spending.
Yet despite this interest, confusion over what constitutes “green” is complicating conservation efforts. Seventy-three percent of the Digital Reality Trust respondents are creating their own standards, due to the lack of a clear industry standard for “green” data centers.
This kind of confusion is one reason why companies should consider outsourcing data center infrastructure, according to an IDG white paper. Other reasons include cost savings and reduced exposure to compliance risks — though such risks are a future threat rather than a current reality.
Because third-party infrastructure providers can leverage economies of scale across large numbers of clients, says IDG, they can deliver data center energy savings of up to 40 percent. And while there are currently no environmental requirements for data centers, an IDC research director hints strongly that this will change.
Today, legislation is concentrated on areas such as materials and recycling, but discussions are going on within the EU (European Union) and NGOs (Non-Governmental Organizations) to extend environmental regulation to IT and communications, and companies must consider the future implications of this for their business.
OK, fair enough, but skeptics among us will note that the IDG report was commissioned by one such provider, Rackspace.
Skepticism apparently was running quite high at this week’s Gartner Symposium and ITxpo in Florida. ZDNet blogger Larry Dignan says that at least some attendees are bothered by the not-so-altruistic motives of vendors and consultants, who are pushing “green” agendas to pad their own pockets.
Dignan also doesn’t understand why there isn’t more focus on virtualization and automated servers than on hardware-driven approaches to reduce cooling costs.
- Source: IT Business Edge
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Green Aims Drive Outsourcing (11-Oct-07)
Technology outsourcing is set to rise if business is landed with the financial burden of compliance with environmental regulations.
Shifting the responsibility for energy costs to the IT department can already consume the entire annual IT budget, according to a report from analyst IDC published this week.
And although efficiency regulations are not currently scheduled, it is only a matter of time, said report author James Eibisch.
“Discussions are going on within the European Union and non-governmental organisations to extend environmental regulation to IT,” said Eibisch.
“Business technology consumes so much energy it is highly probable there will be regulation that targets it in the next few years.”
Currently around 13 per cent of companies’ datacentre spending goes on electricity. But that is expected to increase to 20 per cent over the next 12 months.
Technology outsourcing – a model currently employed by some 50 per cent of businesses – had two potential benefits for firms facing rising bills and changing rules, said IDC.
It cuts costs because suppliers have access to more efficient datacentre technology and can make the most of economies of scale not available to individual organisations. And it reduces risk, by speeding up compliance with incoming regulations.
Major suppliers are already lining up to display their green credentials. IBM, Dell and HP have all recently launched initiatives for energy efficient systems.
And although customers do not yet see environmental issues as a competitive differentiator, they will, said Eibisch.
“Surveys show green concerns are not yet top in customers’ minds, but cost and compliance will make these issues more important in the near future,” he said.
Suppliers who get in early will benefit most when regulation forces the issue up the agenda, said National Outsourcing Association director Mark Kobayashi-Hillary.
“Outsourcing is the purchase of expertise,” said Kobayashi-Hillary.
“Some suppliers have been spending millions on making their IT systems more green, and when legislation is on the horizon user organisations will start demanding that expertise.”
- Source: vunet.com
For an overview on the topic(s), see also
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