Emerging Technology Services Green Offerings: An IBM Overview Dr Peter Waggett © Copyright IBM Corporation 2007 Why should clients care? Is climate change happening and is human activity the cause? 2 | 9th August 2007 © Copyright IBM Corporation 2007 Why should clients care? Climate change is happening and human activity is (at minimum) one of the ‘causes’… Intergovernmental Panel on Climate Change (IPCC) 4th Assessment Report 2007 www.ipcc.ch 3 | 9th August 2007 © Copyright IBM Corporation 2007 IBM: A Longstanding Commitment Publicly committed to environmental leadership for decades First corporate environmental policy established by its CEO 36 years ago (in 1971), followed by corporate energy conservation policy in 1974 Global Environmental Management System covers all intersections between IBM and the environment 1st company to earn a single global registration to ISO 14001 (10 years ago in 1997) Publicly disclosed environmental performance each year for 17 years in a row (since 1990) via a voluntary corporate environmental report 4 Made possible by global environmental management system (can't report unless you're already measuring and managing) | 9th August 2007 © Copyright IBM Corporation 2007 Who is affected how? Legislation Aim of UK Policy on Climate Change is: Putting a price on Carbon through: Emissions trading Taxation Regulation Technology transformation Mobilising behaviour change Main Business measures are: Energy White Paper – incentives, market confidence, accelerate transition to low carbon economy. Climate Change Bill – targets and budgets, enabling powers – e.g. to introduce emissions trading quickly, reporting. EU ETS (European Union Emissions Trading Scheme), Climate Change Levy and Climate Change Agreements – largest emitters (generating companies and heavy industry) Carbon Reduction Commitment – all companies with electricity bill over £250K by 2010. Affects different organisations in different ways, but ALL of our clients will be affected by 2010 at the very latest… 5 | 9th August 2007 © Copyright IBM Corporation 2007 Show me the money… We plan to spend $8bn over the next 10 years - to build a range of low carbon assets and within 10 years deliver carbon dioxide emissions reductions equivalent to those currently emitted by a city the size of Chicago. CITI Targets $50Bn over 10years to address global climate change; includes significant increase in investment and financing of alternative energy, clean technology and other Carbon Emissions Reduction activities Ford in UK to Invest at least £1Bn on reducing emissions and fuel consumption technologies, it marks the largest environmental investment by a carmaker in UK 6 | 9th August 2007 Plan A - £200M investment; We'll aim to make our UK and Irish operations carbon neutral within 5 years. We'll maximise our use of renewable energy and only use offsetting as a last resort. Virgin Group founder Richard Branson will spend $3Bn in the next 10 years on a variety of projects to combat global warming and reduce dependence on fossil fuels. Under a program to cut costs and reduce carbon emissions from its light-duty fleet by 15 percent, the British Government will spend $1.33Bn to replace 78,000 vehicles. Fifteen manufacturers will supply cars over the next four years. The cost will be shared by 38 government departments. © Copyright IBM Corporation 2007 Energy & Climate: Early Action and Results CO2 Emissions Reduction Documented baseline for energy conservation and CO2 emissions reduction goes back to 1990. From 1990 through 2006, IBM’s energy conservation actions: Conserved 4.5 billion kWhrs of electricity Avoided approximately 3 million metric tons of CO2 emissions (equivalent to 44% of the company’s 1990 emissions) Saved $290 million PFC Emissions Reduction Led voluntary efforts to reduce PFC emissions from semiconductor manufacturing 7 Reduced PFC emissions 55% from 2000-2006 1st semiconductor manufacturer to announce numeric goal for reducing PFC emissions (1998) | 9th August 2007 © Copyright IBM Corporation 2007 Energy & Climate: Early Action and Results (cont.) Renewable Energy Significantly increased procurement of renewable energy 11 million kWhrs in 2001 368 million kWhrs in 2006 (7.4% of IBM’s global electricity purchases) 272 million kWhrs of renewable energy 96 million kWhrs of RECs Employee Mobility Pioneer of employee telecommuting and work-at-home programs Helps employees balance demands of work and life Nearly 1/3 of global workforce participates (>100,000 employees) Conserved approximately 8 million gallons of fuel and avoided over 68,000 tons of CO2 emissions in the U.S. alone in 2006 8 | 9th August 2007 © Copyright IBM Corporation 2007 Energy & Climate: Looking Ahead Next Generation Goal Notwithstanding early action and results, IBM has established a "next generation" CO2 emissions reduction goal: 9 Extend existing achievements in CO2 emissions reduction by reducing CO2 emissions associated with IBM's energy use by 12% between 2005 and 2012 based on conservation, use of renewable energy, and/or funding RECs. | 9th August 2007 © Copyright IBM Corporation 2007 Highlights of IBM’s Operational Leadership in Climate Protection The Climate Group Awards & Recognition Early Results 2005 Between 1990 and 2006, IBM’s global energy conservation actions reduced or avoided CO2 emissions by an amount equal to 44% of its 1990 emissions. 44% semiconductor company to set a numerical target for PFC emissions reduction 500 400 200 2005 ‘98, ‘99, ‘01 Become the first 1998 Became 600 300 2005 USEPA Climate Protection Award 1998 and 2006 58% 55% Green Power Purchaser Award 2 0 0 6 Present Goal 100 0 2000 2001 2002 2003 2004 2005 2006 Charter member 2000 Further Further extend extend IBM’s IBM’s early early accomplishments accomplishments by by reducing reducing CO CO22 emissions associated associated with with IBM’s IBM’s energy use 12% from 2005 to emissions 2012 via energy conservation, use of of renewable renewable energy, energy, 2012 via energy conservation, use and/or funding funding CO CO22 emissions and/or emissions reductions reductions with with Renewable Renewable Energy Energy Certificates Certificates or or comparable comparable instruments. instruments. Early Support for Disclosure Business Environmental Leadership Council Computer Program Charter member 1992 CHARTER MEMBER 2002 S i n c e WRI GREEN POWER MARKET DEVELOPMENT GROUP Charter member 2000 10 FORTUNE 500 Top 20 2004, 2005, 2006 | 9th August 2007 i n c e p t i o n Charter member 2003 1605(b) voluntary emissions reporting SSi in nc ce e 1 19 99 95 © Copyright IBM Corporation 2007 The ‘Big Green Initiative’ will begin with four core areas Advanced Energy & Analytics** Green Operations and Supply Chain Advanced Water Management “Maximizing the efficiency & effective-ness of water provision for human, agricultural & industrial consumption”. Scenario modeling: Weather Demand Availability New technologies Water network management Sensors Systems integration Filtration technologies Consulting services “Minimizing the carbon footprint of companies’ operations and supply chains”. Diagnosis Modeling/analysis Process and product redesign Consulting services (Green buildings Data centers++ Fabs++ Offices++) “Minimizing the carbon footprint of energy creation, storage and transmission”. Scenario modeling: Environmental C02 Demand/availability New technologies Power grid management Sensors Systems integration Analytics PV technologies Consulting services Computational Modeling Support for computational and business/process modeling and analytics associated with improving global environmental health “Center for Earth System Intelligence” Support for the above and areas such as weather, climate, hydrology, pollution, pandemics…. 11 | 9th August 2007 Carbon Trading “Enabling buyers and sellers of carbon credits to trade these, within industries, countries and internationally” Tentative at this stage until we ascertain the basic business model(s) that would be needed. However we are pursuing various consulting leads. ++Separate but related developments **Joint development with Energy and Utilities leading © Copyright IBM Corporation 2007 “Innovation That Matters” for Energy & Climate Protection Green Data Centers Intelligent Utility Networks Intelligent Transport Systems Big Green Innovations 12 | 9th August 2007 © Copyright IBM Corporation 2007 Innovation for Energy Efficient Data Centers Reallocating $1B per year to accelerate green technologies & services and dramatically improve data center energy efficiency IBM expects to double the computing capacity of its data centers by 2010 without increasing power consumption Five key steps: Diagnose, Manage & Measure, Cool, Virtualize, Build Nov 2007: Launched industry’s 1st corporateled Energy Efficiency Certificate program. Provides clients with third party documentation of energy savings and tradable energy efficiency certificates. 13 | 9th August 2007 © Copyright IBM Corporation 2007 The Green equation for the next 2-3 Years Businesses are actively looking at Greener IT Datacentres waste 875,000,000kWH of energy a year, or 436,000,000 tonnes of CO2 By 2008 50% of all Datacentres are power constrained Energy Second Highest cost in 70% of Datacentres by 2009 Global Power usage growing by between 2.7% and 4.4% per annum 60% more power needed by 2030 Green Computing is more than Operational Issues Manufacture, Managing Suppliers*, Logistics, and Disposal Political Pressure for ‘Green Position’ Optimisation of Assets Increasing asset utilisation More efficient software and application design and coding 14 | 9th August 2007 © Copyright IBM Corporation 2007 STG - Power and Cooling Advantage 140 120 How many processors fit into a given power/cooling envelope. Processors 100 4KW 80 1U HP BL20 Dell 1855 BladeCenter 60 40 7KW 17 18 19 23 15KW 30 31 34 41 21KW 66 68 73 88 93 96 102 123 20 0 4KW 1U 7KW HP BL20 15KW Dell 1855 21KW BladeCenter Power/Rack Less power per server means more processing capacity per KW Customers constrained by either power or cooling can pack more processors into the same power/cooling envelope Better utilization of data center floor space 15 | 9th August 2007 © Copyright IBM Corporation 2007 Energy in data centres Power and cooling exceeds server Spending – IDC 2006 Spending Installed base (US$B) (M units) Power and cooling 18 $80 16 New server spending $70 14 $60 12 $50 10 $40 8 $30 6 $20 4 $10 2 $ 1996 16 1997 1998 1999 | 9th August 2007 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 © Copyright IBM Corporation 2007 Where are the Watts consumed ? Servers Hardware Data Center 100 Server Loads 50 0 Typical Utilization Mainframe 80 – 90% Unix 10 – 20% Wintel 5 – 12% AC/DC losses; 25% Fans; 9% Used Resource Idle; 20% = 3,6% of total 80% HVAC, UPS 40% IT power 60% Processor DC/DC losses; 10% 30% Standby; 2% Drives; 6% PCI; 3% Planar; 4% Memory; 11% Need one more W of compute energy ? 27 W data center X1,7 16 W equiv IT power SPL Sites & Facilities GTS 17 | 9th August 2007 x3 5 W equiv processor x5 +1 W equiv. used ressource STG Systems Design © Copyright IBM Corporation 2007 Mainframe vs Intel servers – Power and Space Power and Space Consumption SPACE: System z9 vs. Linux on Intel POWER: System z9 vs. Linux on Intel 120 250 IBM z9 Intel 200 IBM z9 In a consolidation, the 100 IBM System z9 may provide: up to 4 times the same 100 work in the same space 80 Square Feet Kilowatts Enterprise Class (EC) 150 Intel 60 40 upto 12 times the work 50 for the same power consumption 0 1 vs. 22 8 vs. 157 18 vs. 319 28 vs. 38 vs. 465 602 Processors 54 vs. 789 20 0 1 vs. 22 8 vs. 157 18 vs. 319 28 vs. 465 38 vs. 602 54 vs. 789 Processors The Linux on Intel servers selected in this example are functionally eligible servers considered for consolidation to a System z running at low utilization such that the composite utilization is approximately 5%. The utilization rate assumed for System z EC is 90%. This is for illustration only actual power and space reductions, if any, will vary according to the actual servers selected for consolidation. 18 | 9th August 2007 © Copyright IBM Corporation 2007 The IBM Watson Labs are developing a modeling tool that will capture the carbon and cost impact of key levers • • • • Suppliers Component Supply $ CO2 Process Options • • • • • Order fulfillment process Manufacturing process Shipment process Quality control process Organizational management process • Demand/supply planning • Vehicle Routing • Transportation options • Energy options Levers Transportation options • • • • Modes Shipment frequency Load consolidation Vehicle routing 19 Energy options • • • • • • Oil Diesel Hybrid Ethanol Natural gas Other | 9th August 2007 Supply options Inventory policy options Packaging options Energy options Process options Inventory policy options • Component options • Inventory policy options • Packaging options • Energy options • Process options Assembly Manufacturing $ CO2 • Vehicle Routing • Transportation options • Energy options • Safety stocks • Lot sizes • Planning frequency • Replenishment programs (e.g. JIT, VMI) • Substitutable component choices • Sourcing choices • Location choices • Supplier consolidation Levers • Inventory policy options • Packaging options • Energy options • Process options Packaging options • Package size options • Package recycling options • Corrugated box • Styrofoam • Plastic • Paper work / manuals Distribution $ CO2 • Vehicle Routing • Transportation options • Energy options Customers © Copyright IBM Corporation 2007 Innovation for Intelligent Utility Networks Provide processes, technology and partners to deliver informed decision-making through an IP-enabled continuous sensing network that connects all parts of a utility (equipment, control systems, applications, employees) A new level of enterprise information and integration Enables continuous monitoring & feedback about a utility's assets and operations to improve situational awareness, reliability, efficiency, flexibility, and environmental stewardship 20 | 9th August 2007 © Copyright IBM Corporation 2007 Emerging Technologies here now… Power Meter http://realtime.ngi.ibm.com/powermeter | 0-20p/hour – green 20-40p/hour – amber 40-60p/hour – red! © Copyright IBM Corporation 2007 Water Meter Mote http://realtime.ngi.ibm.com/watermeter | © Copyright IBM Corporation 2007 “UIF” - Universal Information Framework •Live dashboard display •SMS/IM-style messaging •Alerts and notifications •Action buttons to activate/respond •Image and sound delivery | © Copyright IBM Corporation 2007 Live data in Second Life Live Meter reading in Virtual World Could be used in a variety of ways from education to simulation | © Copyright IBM Corporation 2007 Innovation for Intelligent Transport Systems Real time monitoring & forecasting of congestion in cities enables real time action to reduce traffic and emissions Can charge drivers at point of use for access to city centers Stockholm Congestion Tax Project Involves 18 barrier-free control points Allows differentiated pricing by time of day, congestion level, and potentially emissions level 1st month pilot results: Traffic reduced by 100,000 vehicle passages per day (25%) Public transportation passengers increased by 40,000 / day Congestion during peak hours dramatically reduced Corresponding reductions in CO2 emissions 25 | 9th August 2007 © Copyright IBM Corporation 2007 IBM Cool Bluetm Portfolio Services Components: SERVICES LAYER Data Center Modeling & Planning Support for Technology Components Facilities Integration – Power/Cooling Vendors System Components: SOLUTIONS SYSTEMS LAYER VIRTUALIZATIO N LAYER Thermal Map Enterprise Management Integration Power Capacity Planning tools Power Executive : Measure, Monitor, & Control Policy based Mgmt: Deployment-Power-Performance-High Availability Technology Components: TECHNOLOGY LAYER 26 Power Supplies : DC/AC Measure, Efficiency, iPDU CEC: Intel, AMD, Power P6/P7 I/O: Networking, Storage Virtualization Packaging : BladeCenter, Rear/Side Heat Exchangers | 9th August 2007 © Copyright IBM Corporation 2007 IBM portfolio of system design and management tools that demonstrate IBM’s leadership and sets the industry agenda for optimal thermal efficiency. IBM has designed and built 30 million sq ft of client raised floor, 100 IBM data centers and 5 of top 14 green / intelligent buildings in Japan. IBM processes an estimated 40,000 used systems per week through their centers worldwide. In 2006 IBM processed over 100 million pounds of used IT gear sending less than 1% to landfills. 27 | 9th August 2007 © Copyright IBM Corporation 2007 Emerging Technology Services Thank you. peter_waggett@uk.ibm.com +44 (0)1962 817717 © Copyright IBM Corporation 2007