© 2007 IBM Corporation IBM Energy&Enviroment IBM: Global Experience to Lithuania, Vilnius 23 April 2008 Tim Mondorf, IBM Green IT – why and how?

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 2 Green IT  Why is it important – and is it really something new?  What does it mean in the datacentre?  What does it mean to society and to the company?

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 3 Why is Green IT important?  From the Energy Strategy of the Lithuanian Government:  The amount of energy needed to produce one Litas of national income has been cut in half by Lithuanian society since 1990  Still needs to improve by 50 per cent to meet EU levels  Needs to keep improving in the future – in Lithuania and in any other country in the world  We need to ’get more out of less’  Only innovation and IT can do this

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 4 What does Green IT mean in the datacentre?  Data centres in the US account for 1,5 per cent of total energy consumption  Doubled from 2000 to 2006 and still growing  If we are to solve the ’Data Centre Energy Crisis’ we need to take future growth into the equation  Static measures will have a limited effect

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 5 The Big Green-project  Objectives :  Average reduction of data centre energy consumption by 40%  Double transaction capacity over the following 3 years while keeping energy consumption constant

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 6 An example... Year 0Year 1Year 3 Number of clients in the bank KWH in data centre A bank has 100 clients and consumes 100 kwh in its data centre. IBM carries out A Big Green project for the Bank in year 1.

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 7 IBM has achieved the following results CaseReduction in energy consumption Storage platform, large client80% 150 servers consolidated on 8 8 servers 88% 300 servers consolidated on 15 servere 82% 30 Intel-servers on IBM Bladecentre (Medium-sized client, certified by DONG Energy) 48% The above results are part of a Nordic Data Centre Strategy for IBM and IBM’s clients

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 8 Is Green IT really something new?  IBM constructs new datacentre for a client in Switzerland  Even after energy savings, the datacentre still sends out mwh of wasted heat  Enough to heat 80 family homes or.....a swimming pool  And by the way: we can cut back datacentre energy consumption to the year 2000-levels if we make the right strategic choices – that’s new as well

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 9 IDG/Computerworld’s Top-12 for Green IT-suppliers (February 2008) 1. IBM 2. British Telecom 3. Qualcomm Inc. 4. Aplicor Inc. 5. Fujitsu America Inc. 6. Microsoft Corp. 7. Hewlett-Packard Co. 8. Network Appliance Inc. 9. Other World Computing 10. Verizon Wireless 11. Computer Sciences Corp. 12. Sun Microsystems Inc.

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 10 What does green IT mean to society as a whole?  Society has to spend energy more efficiently  Consumers  Energy companies  Private business  IT can help in many respects

IBM Danmark © 2008 IBM Corporation 11 IT at the heart of a greener City Source: IBM solution for smart toll in Stockholm 25 per cent reduction in inbound traffic 12 per cent reduction in CO2- emissions

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 12 Intelligent energy for consumers and business  Optimize consumption and production of energy  Provide consumers with real time information on price and environmental profile  Enhance integration of renewable energy  IBM innovation project with DONG Energy You forgot to turn off the heat – press 1 and I will turn off myself

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 13 Demand is expected to exceed capacity – we need to ensure security of supply Source: Fortum Annual Report 2006

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 14 The Intelligent Utility Network is a way of using IT to getting more economic activity out of the amount of energy consumed  Operate production and consumption of energy as one system using IT  Reduce loss of energy  Make it easier to connect markets e.g. Poland and Lithuania  Give consumers more choice and allow them to react to pricing signals ConsumptionDistributionGeneration

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 15 Giving consumers the choice  IBM experiment allowed consumers to define consumption profile and respond to changes in the spot price of electricity  Average saving for the consumer 10%  Benefit for energy companies was reduction of peak loads = reduction of dependence of imported energy I want 20 degrees in my living room when the electricity is cheap and 18 degrees when electricity is expensive

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 16 What does Green IT mean to the company? Strategy Customer and product Supply chain People ITPropertyInformation  The climate challenge is also a business challenge – we need to keep improving energy efficiency  ’Green IT-solutions’ must support the business strategy – otherwise they will have little effect  Identify the right ’green solutions’ and achieve large business gains

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 17 ’The workplace of tomorrow’ Fax Conference planning Unified Communications and Collaboration Unified Messaging Video telephony Mobil Instant Messaging Attachments Voic Calendar Audio, Web and Video Conferencing

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 18 A car manufacturer had the following strategic dilemma:  ’We want extensive retail coverage = a large number of sales outlets’  ’We want a large variety of models and a wide choice of extra equipment’  A large number of sales outles * many different models = large investment in demo models = extensive logistical challenge = increase time-to-market  IBM and Cisco developed an IP-TV showroom  for the sales outlets –Real-life AND virtual test-run –Choice of extra equipment, color etc –Reduced investment in demo models –Cut back logistic and transports –Shortened time-to-market

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 19 Intelligent Supply chain-solutions can create better decision making for the business and the environment  ’Is it possible to reduce the CO2-foot print from transport without increasing cost and transport time?’  Manage trucks, containers and workforce in real time through intelligent devices  Reduce the total mileage through greater efficiency What is the least CO2- emitting path from factory to client?

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 20 What does Green IT mean to you? Strategy Customer and product Supply chain People ITPropertyInformation

IBM IBM: Global Experience to Lithuania, Vilnius 23 April 2008 © 2008 IBM Corporation 21 ?

IBM Energy&Environment © 2007 IBM Corporation 22 Contact Information  Tim Mondorf  Nordic Business Development Executive, Energy&Environment  IBM  Nymøllevej 91  DK-2800 Lyngby  