Bullet Points: How IBM Went from Blue to Green & Stayed Out of the Red

HOW IBM WENT FROM BLUE TO GREEN AND STAYED OUT OF THE RED
Todd Ramsey (IBM Managing Director)

• Rising concern over energy and climate change is one of the significant forces reshaping governments and societies around the world
  • Changing demographics: Longer life spans, lower birth rates, aging population, dynamic work force
  • Accelerating globalization: Developed countries erosion of industrial jobs, growing migratory work force
  • Rising environmental concerns: Climate change, flood, droughts, pollution, long cycle times for correction
  • Evolving societal relationships: Integrated delivery of secure services anywhere at any time, blending cultures, immigration, regional conflicts
  • Expanding impact of technology: Infrastructure, collaboration, interoperability, pace of technology
• Global energy demand is fast outstripping global supply in an era of rapid worldwide development (particularly China, India)
• Global oil production is peaking/declining, while prices have dramatically risen/fluctuated between two and seven times in the last 10 years. Oil and petroleum products fuel the global economy
• Global warming and climate change, largely due to energy waste (greenhouse gases), threaten the planet’s ability to sustain life
• Soaring food and energy costs pushed consumer prices up at the second fastest rate in a quarter-century in the US
• The Intergovernmental Panel on Climate Change (IPCC) calls for a 50-85% reduction in CO2 emissions by 2050 to mitigate the risks of climate change
• The G-8 countries (US, UK, France, Germany, Italy, Japan, Canada, Russia) agreed to a 50% reduction in greenhouse gas emissions by 2050
• By 2025, freshwater resources for over half the world’s countries across the globe will either undergo stress or realize outright shortages
• Green data centers are energy efficient and environmentally responsible
• Proven results have been achieved in IBM data centers
  • 45% reduction in power and cooling
  • 20% increase in server/storage utilization
• Both private and public sectors report significant results using energy efficient technologies and services
  • Average achievable energy savings greater than 40%
  • Data center energy efficiency assessment shows average payback less than two years
  • Average utilization rates increased two to four times
  • $1 energy savings drives another $6 to $8 in operational savings on average
  • Efficiency projects ranged from 2,000 sq ft to 180,000+ sq ft
• Today’s major drivers include:
  • Rising cost of fuel
  • Increasing traffic congestion
  • Mandated reductions in greenhouse gas emissions
  • Heightened corporate environmental responsibility
  • Tightening talent pools/employee preferences and expectations
• Factors favoring transitioning government employees to work at home are:
  • Employees are spending in excess of $9,789/year commuting five days/week, dispersing eight tons of pollutants into the environment and using 233 hours for travel to and from work
  • Telecommuting three days/week could save $5,878 and disperse 4.5 tons less pollutants
• Mobility solutions are enabled today by substantial improvements in technologies and infrastructure
  • Improving and cheaper bandwidth to home
  • More reliable and secure virtual private networks
  • Increased availability of private or shared mobile work centers
  • Improved collaboration and communications software
• Workforce mobility provides the following opportunities for our clients:
  • Attracts best talent and aids in the retention of current employees
  • Grows the organization without increasing real estate investment
  • Encourages individuals to provide, update, and capture knowledge, information, and data
  • Ensures continuity of operations during disasters and emergencies
  • Increases productivity and enhances employee engagement and work-life balance
  • Leverages innovative technologies and enables cognitive diversity
  • Promotes environmental consciousness and encourages employees to develop sustainable practices
• Smarter supply chain:
  • Increased visibility and control
  • Integration and synchronization with supplier and partner network
  • Carbon trade-off modeling
  • Advanced business activity monitoring
  • Advanced business process simulation
  • Built on a robust Service-Oriented Architecture (SOA) foundation
• Smarter water management is an imperative in a world faced with scarce water resources
• Peoples’ actions impact the environment — leadership will enable necessary changes in behavior
• US average behavior breakdown
  • Home energy 36.2%
  • Driving and flying 44.3%
  • Food and diet 15.1%
  • Recycling and waste 4.4%
• Workforce globalization allows us to compose worldwide teams