1. © 2007 IBM Corporation IBM Energy&Enviroment IBM: Global Experience to Lithuania, Vilnius 23 April 2008 Tim Mondorf, IBM Green IT – why and how?

2. 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?

3. 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

4. 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

5. 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

6. 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 100 200 KWH in data centre 10060 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.

7. 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

8. 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 2.800 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

9. 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.

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

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

18. 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

19. 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?

20. 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

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

22. IBM Energy&Environment © 2007 IBM Corporation 22 Contact Information  Tim Mondorf  Nordic Business Development Executive, Energy&Environment  IBM  Nymøllevej 91  DK-2800 Lyngby  +45 25 60 38 49  tmn@dk.ibm.com tmn@dk.ibm.com