Are more companies refusing to pay more for green IT?

Are more companies refusing to pay more for green IT?

Summary: There used to be a perception, not so many months ago, that your company would have to spend more to green-ify its IT infrastructure. But the flagging economy is apparently dashing any hopes that high-tech vendors might secretly have harbored that they could get customers to spend more dollars for the privilege of being green.

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TOPICS: Emerging Tech
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There used to be a perception, not so many months ago, that your company would have to spend more to green-ify its IT infrastructure. But the flagging economy is apparently dashing any hopes that high-tech vendors might secretly have harbored that they could get customers to spend more dollars for the privilege of being green.

Rackspace, the hosting provider in San Antonio, Texas, recently surveyed its roughly 3,000 customers (about 180 responded), to get a sense of the financial sacrifices that may or may not be willing to make green tech cause. This is the second time the company has done such a survey, and while it is by no means scientific, the results are markedly different than last year.

Some quick highlights:

- 41 percent of the respondents said they would pay 5 percent to 10 percent more to work with a green vendor, off 11 percent from the 2007 survey. - At the same, 46 percent of the respondents said they WOULD NOT pay more to work with a green IT vendor, if their prices were higher. This is up from 29 percent last year. - 30 percent of the respondents said there were NOT WILLING to pay a premium for products or services just because they were concentrated on one of the following: renewable energy, recycling, conservation or carbon offsets. This was up from 8 percent last year.

"This year, people were less willing to trade of performance or spend more on their green technology. My gut tells me this is due to the economy," says John Engates, CTO of Rackspace.

Here's latest survey.

So, should your company get all cynical about the green tech movement. I really don't think so. But the arc of the economic downturn is going to accelerate the downward price pressure that someone might be able to charge as a green tech specialist. Better, instead, to focus on how to differentiate your value proposition with the green tech message WITHOUT looking like a luxury item. Here's how Rackspace is addressing green issues with its customers, without necessarily charging them more.

[poll id=9]

Topic: Emerging Tech

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6 comments
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  • Lets be real..

    Business is business, the environment doesn't come into play. Switching your company to green is like choosing brown or black carpet - it doesn't matter. The government did this - let them fix it on their bill.
    ZachE84
    • And how did the government do what?

      Oh, I see. You don't care to explain your nonsensical
      prattling beyond the stupidity you've already displayed.
      Good. Nobody really wishes to hear more idiocy than what
      you've already spewed. You probably drive a Hummer H2
      to work alone five days a week and think that's the
      government's problem to fix, too. Everything you've written
      is evidence that you have no ability to think, analyze, or
      debate, and your pea-sized cerebrum is doubtless riddled
      with amyloid plaques. I suggest you get a brain MRI, not
      that there's anything medical professionals can do to cure
      you, but at least they can document why you "think" the
      way you do.
      thetwonkey
      • DEBATE?

        "Everything you've written is evidence that you have no ability to think, analyze, or debate"

        And what you've written shows that you are a better debater, thinker or analyzer? NOT

        If you want to debate the previous poster's statement, then do so, instead of just writing a bunch of verbose insults.
        gsteck
  • RE: Are more companies refusing to pay more for green IT?

    Its just another hurdle in the IT Governance Road. The last one was SOX compliance and by the way it is back in spades only its not about SOX anymore but rather about being Digital Evidence Ready and having a tested eDiscovery Plan.

    As to why its necessary, most US Insurance Underwriter's have a new criteria to meet, and that is that any content coming from an Insured Party must meet the Court's new Digital Evidence Admission rules and deal with antispoliation as well.

    Failure to do this may render their D&O Policies useless. Something that would be a real issue for corporate executives here in the US.

    //TSG
    TSGlassey
  • Spend more ... highly doubtful in this economy

    I highly doubt any company would spend more for "Green IT" Business from my experience tend to purchase using a cost to benefit analysis and "typically" if cost goes up, then they don't do it.

    I only see businesses doing it if it costs LESS or THE SAME and performs BETTER or THE SAME.

    Very few businesses want to take away money that they earned for infastructure unless they need to as the CEO's always need their bonus and the little person/pawn needs their quarter an hour raise. Taking money away from the big bonuses is a big no no ... at least from the big bosses stand point who tends to make the final decisions.
    KBall1
  • RE: Are more companies refusing to pay more for green IT?

    The "green" idea is great on paper. But you have to think a little more about what benefits anyone is really getting by making "green" changes. As a business, my first priority in the budget arena is can I do it cheaper than I'm doing now. Because if it's cheaper, odds are it's "greener".

    That's not always the case though. Look at this stupid idea congress has came up with outlawing incandescent light bulbs. I'll probably be dead and buried long before the cost differences of using these overpriced screw-in flourescent light bulbs comes to fruition.

    Personally, this global greener religion is getting way out of hand and a few companies are getting super rich on selling so-called "green" devices. I don't have a problem with conserving energy. If you want to ride a bike to work....more power to you. I don't have time personally. Just stay out of the way so I don't run over you. I'd hate to get a smudge on my hummer.
    rickroberts_mcse@...