IBM and the Environment
From Lauraibm
Contents |
Coverage in the Press
Text of IBM Articles on IBM and its close partners
- Hursley leads the way in efforts to go green (4-Jul-07)
- Welcome to Green Driving
- Turning your Servers green
- Lenovo tops eco-friendly league
Green champion Ecotricity moves ahead with IBM
About Ecotricity
Ecotricity has been building wind turbines and selling electricity across the UK since 1996. It supplies large organisations such as The Body Shop and the Co-op Bank and is recommended by both the Soil Association and the World Wildlife Fund.
It is the only green electricity company that builds its own renewable energy sources and is dedicated to changing the way electricity is made and sold.
It builds and operates wind turbines on partner sites through its Merchant Wind Power programme. Partners buy their electricity from the turbine and receive a dedicated supply of green power at reduced rates.
Ecotricity and IBM
IBM’s green credentials and drive to focus on mid-market have opened the door to a $3.72 million deal with Ecotricity - the utility company that sells green electricity across the UK - and will enable the company to take the brakes off its business.
Ecotricity, which is investing £25 million in wind energy this year, can now move forward with its ambitious plans to change the way homes and businesses buy and consume power.
Customer growth
Ecotricity has seen its customer numbers double each year for the past three, but the increasing pressure on its back-office systems meant it had to put its marketing activities on hold.
The company’s founder, Dale Vince, had been searching for a customer relationship management (CRM) and billing solution to support his plans for customer growth, when an email from Client Manager David Benton popped into his inbasket.
Impressed with IBM’s environmentally-friendly policies and surprised that such a large company would be interested in his 70-employee organisation, he invited David and his Global Business Services (GBS) mid-market colleague James Ritchie for informal talks.
There was instant rapport between the two organisations, and a few months later, Ecotricity agreed with IBM’s proposal to become the first IBM UK implementation of SAP Industry Solution for Utility (ISU).
The direct approach
David, who is part of the SMB team covering Southern England, decided to introduce himself to Ecotricity with an email to Dale Vince headed ‘Big but Green’.
In the note, he said he had selected Ecotricity as a potential client because it was clearly a dynamic, expanding organisation committed to combating climate change. He outlined IBM’s long tradition of minimising its impact on the environment, and covered IBM’s policies on recycling, waste management and using renewable energy sources for its power needs.
He dismissed the preconception that IBM was only interested in large companies and suggested the two organisations could work well together. Importantly, Ecotricity could fulfil its plans for growth with help from IBM.
Dale responded positively and the next day David and James were on their way to the company’s HQ at Stroud for their first meeting.
“The company already had 25,000 customers and planned to move that figure to one million or more, but expansion was being held back by inadequate IT,” says David. “They were using an old legacy billing system that was out of support and needed a great deal of manual work-arounds, and although they had been having lengthy discussions with a couple of suppliers, including one that was proposing a solution with some SAP components, nothing had yet been signed. So, we were in with a remote chance.”
At the initial meeting, James confirmed IBM’s support for medium-sized companies as well as its understanding of the issues facing utility companies. He then suggested a process mapping exercise that would document the company’s current activities; shortly afterwards a contract was signed and a small GBS team lead by Lori Sangastiano began working with Ecotricity.
James says: “Like many relatively new companies of this size, there was no real documentation of the way things were done, so there was no base line to work from in order to define and improve things. The mapping exercise was therefore very important and identified some quick wins. There were three or four IT systems people, but no IT management, so Lori worked with the key stakeholders to really understand the needs of the business, while David and I worked on the relationship with Dale.”
Sharing values
The trust built up by the IBM team during the first engagement, together with a compelling commercial deal, led Ecotricity to choose the IBM proposal for a replacement CRM and Billing solution over the competition (Intallec) whose proposed solution cost 70% less than IBM’s.
“Things became very competitive at this stage, but it was clear that Ecotricity and IBM share the same values, and this gave us more credibility,” adds David. “Dale was also genuinely pleased that a company the size of IBM wanted to work with him. He had been unaware of our green credentials and history, and it was undoubtedly these that opened the door for our first meeting. Dale wants his company to be a market leader, and Ecotricity becoming IBM’s first implementation of SAP ISU in the UK shows his commitment to the goal. It will create shock waves around the utility industry - Green energy is now big business.”
The contract is a multi-brand solution that includes GBS implementation services over the next 10 months, $100,000 for IBM System x, and financing by IBM Global Financing (IGF), on top of the SAP licences which IBM wrapped into the deal.
Hitesh Amin, GBS Mid Market sector lead, who led and closed the deal directly with Dale, says: “This win is very much aligned to the mid-market business model of selling not only services but also hardware, licences, and IGF services. In addition, we were able to close the deal in one week with support from GBS risk & bid and C&N.”
He adds: “The Mid Market GBS sector approach to focus on white space clients and secure deals which GBS has not won before, is proving to be a win/win business model for Mid Market and GBS industries verticals.”
- Source: w3 News
Analyst Views and IBM
Big Blue Focuses Attention on "Big Green" (May-07)
Comment by Matthew Eastwood
On May 10th, IBM announced a new integrated set of product and service offerings collectively called "Project Big Green." IBM recognizes that solving the energy challenges for the Data Center of the Future requires a holistic approach, including a focus on both the physical data center environment and the IT infrastructure itself. IBM claims to have designed more than 40 million square feet of raised floor data center around the world and is currently operating 8 million square feet across the corporation. While this places the company in a unique position in the market, IBM is quick to recognize that the power and cooling density challenges facing data center managers today are so extreme that it will take strong partnerships to adequately address the full range of problems. In fact IBM was joined on stage by executives from Liebert, Emerson, APC, Eaton, Anixter, and GE at the launch event in New York City.
IDC's customer research shows that power and cooling concerns are the top issue in the data center today. Compounding the problem is the fact that most IT managers have no idea how significant the problem is. In fact, a recent survey by IDC’s Enterprise IT Advisory Council found that 47% of the IT managers surveyed had no idea how many watts per square foot their data centers are capable of supporting today. Furthermore, it isn't always clear exactly who is responsible for paying the power bill inside most enterprises today. Again, in the same recent Enterprise IT Advisory Council survey, the IT organization was reported to be responsible for paying the power bill only 28% of the time. As a result, it is common for most people in IT to take the position that it isn't their problem at all.
For IBM, "Project Big Green" is a five- part strategy designed to help customers achieve a significantly more energy-efficient data center. The strategy, which runs across the organization touching Big Blue's systems and technology, global services, software, and financing organizations, includes the following:
DIAGNOSE: Evaluate existing facilities — energy assessment, virtual 3-D power management, and thermal analytics. BUILD: Plan, build, or update to an energy-efficient data center. VIRTUALIZE: Virtualize IT infrastructures and special purpose processors. MANAGE: Seize control with power management software. COOL: Exploit liquid cooling solutions — inside and out of the data center. One of the more innovative element of IBM's "big green" strategy is a patented “stored cooling” solution that allows customers to store cooling capacity in a chemical solution that can be altered to change state from solid to liquid at a wide range of temperatures. This allows the "system" to be optimized for specific temperature requirements in data centers around the globe. Customers can recharge' the IBM Data Center Stored Cooling Solution service product by running chillers at full efficiency during off peak hours when energy costs are lowest. IBM claims that this solution makes existing chilled water cooling infrastructures run 40–50% more efficiently.
IBM and its partners recognize that it will take a significant amount of education before this problem can really be solved. In addition, IBM's partners identified a number of other areas where the industry needs to focus attention in order to solve the problem in the data center. On the supply side, all OEMs must do their best to develop energy-efficient products and educate enterprise customers of all sizes regarding the ROI associated with energy-efficient products. The EPA's Energy Star program has been very successful in consumer markets by giving customers a common set of energy metrics necessary to make informed purchasing decisions. It is clear the enterprise needs a similar set of metrics to support for their planning needs. Another critical part of the solution is the development of enterprise-wide energy policies. This will be critical in order to get a consistent set of goals so that IT, facilities, and the business can all work from the same page.
IDC believes that it does take a holistic and partnered approach to solving these data center and IT infrastructure problems. It is clear that customera face a large and difficult challenge, and the problem is going to get worse before it gets better. According to IDC research, one-third of data center managers expect their current data center to operate for more than 30 years. At the same time, the typical IT infrastructure is replaced or significantly upgraded every five to seven years, and the compute and power densities grow significantly. As a result, the typical data center with a 20-year life cycle will support three generations of computing infrastructure over the course of its life. Additionally, The typical enterprise class data center averages 50,000 square feet and supports more than one third of all servers within the organization. In the United States, the average operational age of the typical data center is 12 years old, and more than 40% will be replaced within the next 10 years — 17% within the next five years. It is clear that the data center of the future will be quite different that the average legacy data center it will replace.
- Source: IDC
