Sustainability and the Role ofInformation TechnologyRich LechnerVice President, IBM Energy & Environment

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The world is hot, flat, and crowded. Thomas Friedman

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The world is hot, flat, and crowded. Thomas Friedman

Fortunately, it is also getting smarter.

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Our world is becoming INSTRUMENTEDWe now have the ability to measure, sense and see the exact condition of everything.

Our world is becoming INTERCONNECTEDPeople, systems, and objects can communicate and interact with each other in entirely new ways.

Virtually all things, processes and ways of working are becoming INTELLIGENT

We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events.

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Instrumented …every location, state, temperature, condition will become a source of valuable insight

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In 2001, there were 60 million transistors for every human on

the planet… by 2010 there will be 1 billion transistors per human

Instrumented …every location, state, temperature, condition will become a source of valuable insight

In 2005 there were 1.3 billion RFID tags in circulation…… by

2010 there will be 30 billion

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Interconnected …systems working together in new ways

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Worldwide mobile telephone subscriptions reached 3.3 billion

in 2007An estimated 2 billion people will

be on the Web by 2011

Interconnected …systems working together in new ways

Daily financial market messages growing from 5 billion in 2006, to 130 billion+ per day in 2010

Our personal information footprints will grow 16 times

between now and 2020

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Intelligent …every insight results in action that creates new value

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We’ve thought about IT as the world of data centers, software,

PCs, routers, bandwidth.We’ve thought about

infrastructure as the world of buildings, factories, hospitals,

roads, pipelines.Those worlds are converging.

The world can become smarter. We’re building it with our clients.

Intelligent …every insight results in action that creates new value

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Of all the potential electricity available in an energy source, only 30 percent

reaches consumers

…an estimated 170 billion kilowatts are wasted by consumers each year

due to insufficient power usage information

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Intelligent Utility NetworkEfficient energy transmission & distribution networks

reduce outages and improve grid management, reducing peakload energy requirements on the

power grid by 15% to 50%

IBM and utilities worldwide are proving that advanced meters (more than 45 million deployed

worldwide) can enable homeowners to reduce energy costs up to 10%…

…turning ordinary thermostats into day traders for energy, ensuring the best cost for the customer and

better load balancing for the grid

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Forty-five percent of traffic on the busiest New York City streets is circling the block

looking for parking

…congested roadways cost $78 billion annually in the form of 4.2 billion wasted

hours and 2.9 billion gallons of wasted gas

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Intelligent Transportation Systems

Source: www.stockholmsforsoket.se

In Stockholm, Sweden, a 7 month pilot on congestion charging saw traffic

entering the city decrease by 25% and CO2 emissions decrease by 15%...

…and public transportation usage increased by 40%

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In North America, up to 22 percent of total port volume is empty containers. The Port of

Jersey has 100,000 empty containers sitting in storage –

worth nearly $200 million.

….U.S. CPG companies and retailers lose $40 billion

annually due to inefficient supply chains

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Chinese shipping and logistics giant COSCO utilized IBM’s Supply Chain Network Optimization Workbench

(SNOW) to reduce the number of its distribution centers from 100 to 40...

…thereby lowering logistics costs by 23% and reducing CO2 emissions by 15% while maintaining service levels for

clients and incurring no additional costs.

Intelligent Distribution Networks

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In the U.S., a typical carrot has traveled 1,600 miles, a potato 1,200 miles, a beef roast 600

miles

…grocers and consumers throw away $48 billion worth of food

every year

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IBM and Matiq developed a first of a kind tracking solutions for food

safety and traceability

…Tagged over 3 million crates for tracking. Allows parent company, Nortura–a cooperative of 31,200 farmers in Norway to improve

delivery locally produced sustainable meats and eggs

Intelligent Shipping & Tracking Systems

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By 2020 1.3 billion people won’t have

access to safe drinking water… Industry accounts for about 22% of

freshwater usage today

…the combined direct consumption of five food and beverage giants in 2007 was enough to serve the daily basic water needs of everyone on

the planet

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Intelligent and Advanced Water Management

IBM has analyzed the chip making process in Burlington Vermont using IBM Green SigmaTM and by modifying

one critical step in the process is saving 20 million gallons of water, 15,000 gallons of chemicals, and 1,550,000 kilowatts of electricity

annually…

… achieving $3M in annual savings and increasing manufacturing production

over 30%

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Buildings use 40% of primary energy consumed globally

…30% of energy consumed by commercial buildings is wasted

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Intelligent Buildings

IBM Example

Enhancing existing buildings to be more energy efficient typically reduces total

energy consumption by 20-50%...

…while new “green” buildings have the potential to reduce energy consumption

by 80% or more.

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Information Technology energy use is growing 12 times the overall demand. Data Centers alone consumed 180B kilowatts in 2007 and will double in

the next 2 to 4 yrs

…while every 100 units of energy production drives only 3 units of

productive computing on average

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Intelligent IT

IBM Example

IBM clients have seen dramatic results: average achievable energy savings greater than 40%; average payback of <2 years in

Data Center Energy Efficiency assessments; asset utilization rates increasing 2x-4x; deferral of massive capital investments in new datacenter

builds…

…and $1 energy savings drives another $6-8 operational savings on average

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Intelligent IT vs. Other Abatement Options

…or you could remove 3,505,401 cars and light trucks from company fleets.

…or you could plant 502,440,757 tree seedlings and grow them for 10 years.

…or you could manage and preserve 16,329,325 acres of pine forest per year.

..or you could recycle 6,597,707 tons of company waste instead of sending to

landfills.

20% efficiency

improvement could save 36 billion kwh or 22m tons of

CO2

What if all data centers were

were more efficient?

Data source: http://www.usctcgateway.net/tool/

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Laws, Regulation, Standards

Business Opportunities

and Challenges

Stakeholder Pressures

Costs and Availability

Factors and Influencers That Will Demand Our Attention

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Strategy People Information Product

IT Property Businessoperations

Intelligent IT Requires a Holistic Approach

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Strategy People Information Product

IT Property Businessoperations

Intelligent IT Requires a Holistic Approach

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Strategy People Information Product

IT Property Businessoperations

Intelligent IT Requires a Holistic Approach

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Designing Energy Efficient Data Center Facilities

IBM Site and Facilities Services– Significant services deployment capability: over

3,300 resources for server, storage and data center services

– Designed and built over 30 million square feet of raised floor for clients in 40 countries

Global experience to provide end-to-end for: Data center strategy Data center energy efficiency assessments Data center design and build Data center consolidation and relocation

IBM data center familyTM of solutions align your capital and operating costs to your business and IT needs to allow you to “pay as you grow” with: Scalable modular data center Enterprise modular data center High density zone Portable modular data center

100’s, 1,000’s, 10,000’s of sq. ft.

and beyond

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Taking Advantage of Compute Resource Innovations

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Taking Advantage of Compute Resource Innovations

IBM System z10 EC

Up to 93% savings in energy costs and 46% less space than Sun X2100 Single Core

servers

IBM POWER Systems

IBM Power™ 595 uses 91% less energy and 98% less space than a 64-core HP 9000 Superdome

IBM BladeCenter

Uses up to 24% less energy than the

HP BladeSystem c-class

Cuts energy costs 40% compared to

equivalent compute power in an

enterprise rack

IBM iDataPlexIBM System x3950

64-core scalability, now for x86 large scale virtualisation

IBM System Storage

TS7530 Tape and SAN Volume

Controller and virtual disk. Can

cut cost 10X

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SAN Volume ControllerVirtual File Manager

Tape Virtualization Engine

Virtual I/O ServerBladeCenter Open

Fabric ManagerSystem z

Hypersockets

WebSphere Virtual Enterprise

Service Management

IBM Tivoli Service Management Family

IBM Systems Director IBM TotalStorage Productivity Center

Virtual Client Solution

IBM VIA Service

Application Virtualization

ClientVirtualization

StorageVirtualization

NetworkVirtualization

Server Virtualization

Use Extreme Virtualization to Gain Significant Efficiencies

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Data Center Infrastructure Assets

• Servers, Storage, Networks• CRAC, UPS, PDUs• Wireless Sensors

Facility Infrastructure AssetsBuilding Automation Systems

Facilities Systems

• HVAC• Power BU• Lighting

• Fire • Security• Desktop (future)

IT Physical and Virtualized

Assets

3rd Party Servers and Storage

IBM Tivoli Monitoring and IBM® Systems

DirectorActive Energy Manager

Implement Energy Management – Enterprise wide

Tivoli Energy and Asset Management

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Data Center Infrastructure Assets

• Servers, Storage, Networks• CRAC, UPS, PDUs• Wireless Sensors

Facility Infrastructure AssetsBuilding Automation Systems

Facilities Systems

• HVAC• Power BU• Lighting

• Fire • Security• Desktop (future)

IT Physical and Virtualized

Assets

3rd Party Servers and Storage

IBM Tivoli Monitoring and IBM® Systems

DirectorActive Energy Manager

Implement Energy Management – Enterprise wide

Tivoli Energy and Asset Management

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Address the Demand Side

By 2020 Personal information will grow 16xBetween 2000 and 2010 Storage will grow 69x

Source: IDC, 2007

Stem the growth of data Data de-duplication Thin provisioning Compression Policy-driven data retention/

migration Integrated compliance &

archiving

Source: The nature conservancy

Driving and Flying44.3%

Recycling and Waste4.4%

Food and Diet15.1%

Home Energy36.2%

Improve Productivity Online collaboration (IM, Web

Conference etc) and learning Paper & waste reduction Multi-site SW development

coordination Human task automation

Efficient Applications/Processes Application virtualization &

consolidation Dynamic workload distribution “Green” SOA efficiencies Energy cost allocation & billing Business process optimization

Growth in Application and Business workloads doubles every 2 years.

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Remember to use Responsible Disposal

IBM is leading recycler of IT equipment

“1 billion computers will potentially be scrapped between now and 2010”“55% of US-based companies do not have an IT disposal strategy”

IDC, Gartner and the National Safety Council

Approximately 40,000 units per week Less than 1% to the landfill Documented the collection and recovery of over 1.5B

pounds end-of –life waste since 1995 85% of machines returned to IBM remanufacturing

centers are reused or resold

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IBM & Neuwing Energy deliver Industry’s first EEC Program– Transparent method to quantify, measure, verify, certify

energy efficiency projects– Available in 34 Countries – Broad range of qualifying projects:

• Data center design/retrofits• Server & Storage upgrades• Virtualization (server, storage, network)• General office space projects

– Collaborating with Utilities to establish as vehicle for demand reduction incentives

Stress the Importance of Monitoring & Verification

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Source: Data from subset of IBM engagements with over 3000 clients where savings have been quantified.

“Average achievable energy savings greater than 40%”“Data Center Energy Efficiency assessment shows average pay back < 2 years”

“Average utilization rates increased 2X to 4X”“$1 energy savings drives another $6-8 operational savings on average”

Customer Results

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IBM Project Big Green 42% of IBM’s employees do not regularly come

into an office saving $100M annually in real estate costs

Last year IBM saved $97M in travel costs by using online collaboration instead

IBM is doubling the computing capacity of its IT centers from 2007 to 2010 w/o increasing

energy use 1990-2007, avoided energy-use-CO2

emissions equivalent to 45% of IBM’s 1990 energy use, average saving of $18.2 million

per year in utility cost Process improvements in the chip making

process in Burlington, VT are saving 20M gallons of water, 15 thousand gallons of

chemicals and over 1.5M kilowatts of electricity annually….achieving $3M in annual savings

and increasing manufacturing production over 30%

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See Where You Are and What is Possible

IBM Energy & Environment Benchmark Tool See where you are in each area of the Energy & Environment Compare your green score to others in your industry Get started: http://green.bathwick.com/ibm_egreen/UK

IBM Virtual Green Data Center in Second Life See what is possible by touring an energy efficient

data center on line Get started: http://w.on24.com/clients/IBMGreen

Software Energy & Environment Self-Assessment Assess current state of your energy and environment efforts Recommends next set of steps to take Get started: http://www.ibm.com/software/green

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IBM Energy & Efficiency Track

IT OptimizationTracks:

Energy & Efficiency

Virtualization

Business Resiliency

Storage & Information Infrastructure

Managing System Z

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E&E track kick-off: Creating an Energy Efficient Dynamic IT Infrastructure

Economy meets Ecology, IBM Software for a Greener World

Service Management – A Natural Fit in Your Green Strategy

Energy Management and the Green Data Center

Reducing Energy Costs with Power Systems

IBM System x Cool Blue Technologies

High Availability, High Efficiency Data Centers with Real-time Infrastructure

Energy-Efficient and Cost-Effective Data Center Solutions from APC and IBM

Energy Efficiency Solutions in IBM & Commercial Environments

Supporting Your Green IT Initiatives with IBM Information On Demand

360-Degree Visibility for Your Building Automation Systems and Data Center Breakout Session Approved Energy & Efficiency

Planning for an Energy Efficient Datacenter

Data Centers: From Brown to Green -- Drivers, Approaches, and Financial Mechanisms

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Green at Pulse Breakout Sessions Dedicated Energy and Efficiency Track

Finding the Value in Green – Addressing Energy and Environmental Challenges and Opportunities

Demonstration Green Data Center/

Monitoring demo – Tuesday general session

Meet the Experts Jim Fletcher Wayne Riley Vik Chandra Chris O'Connor Chris Dittmer

Expo IBM Tivoli Business Service Manager &

Monitoring for Energy Management

IBM Software for a Greener World

Expo Theater

– A Measured Approach to Going Green: IBM Green Sigma Consulting Offering to Help Clients Reduce Energy and Water Usage

Labs Using IBM Tivoli

Monitoring for Energy Management 6.2

Birds of a Feather Sessions Energy Management: Monitoring for

Effective Management

IT-led Greening: Applying IT to Make the Entire Organization Greener

Rick Skanron John Miller Sheri Phillips Chris Malloy Ian Salvage

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Ready for Energy & Environment

Recognizes Business Partner solutions that have demonstrated measurable energy and environmental benefits

The recently-announced worldwide program goes live February 15th

– Business Partners can learn more about the program at the February 18th webcast – register at:https://events.webdialogs.com/portal/wipevents/register.php?id=71d258c23e&l=en-US

Clients can look for Partner solutions that have a proven environmental results – those with the IBM Ready For Energy & Environment mark

New!!

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visit ibm.com/green

IBM can help you find the value in green