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Green IT: Great intentions, no budget

By | July 28, 2010, 11:58am PDT

Summary: Why doesn’t this surprise me? Forrester Research is reporting that barely one-quarter of all businesses have any kind of budget for what would be considered green IT activities, even though 45 percent are embracing a strategy related to green IT and another third are considering it. As I reported about two weeks ago, Forrester’s regular surveys [...]

Why doesn’t this surprise me? Forrester Research is reporting that barely one-quarter of all businesses have any kind of budget for what would be considered green IT activities, even though 45 percent are embracing a strategy related to green IT and another third are considering it.

As I reported about two weeks ago, Forrester’s regular surveys on green IT issues find that there are certain pockets of support for things that you would classify under the green IT umbrella. For example, businesses are really interested in extending their enterprise software applications so that they can keep better track of their carbon footprint or so that they manage their energy usage. Purchases or intended purchases of these applications have risen as a result. They also are including green features and technology considerations as part of their corporate procurement strategy.

The new report, “Green IT Plans and Activities Persist in 2010 Despite Lack of Formal Budgets and Priorities,” suggests that CIOs and IT managers keep in mind the role that green IT strategies are irrevocably linked to other key priorities, such as server virtualization and consolidation. So, even though there typically isn’t a separate line item for green IT in your budget, green IT considerations could play a role in your ability to get the buy-in or sign-off for other projects. The latest report is based on Forrester’s survey of 2,803 enterprises and small businesses in the second quarter.

Here’s an example of what Forrester is talking about in the report: only 21 percent of IT budgets include electricity costs, but 60 percent of IT organizations are focused on improving data center energy efficiency. So, even though the strategy makes sense in the larger scheme of things, the IT side of the house might find it hard to become empowered to take action. (Pun intended.)

According to Forrester’s separate green IT survey, IT professionals say that the biggest opportunities to bring green IT into the conversation surround server virtualization in the data center and printer consolidation in the distributed IT environment. Power management of client devices is also a big deal (not as much, so far, on the server hardware side).

The lead analyst on this report, Doug Washburn, has several recommendations for helping IT professionals create awareness for green IT within their IT budget. They include:

  1. Linking green IT projects — such as videoconferencing or building automation — to corporate financial returns.
  2. Showing how green IT, especially the ability to measure and manage energy or water usage, can help reduce overall operations costs.
  3. Demonstrating how green IT initiatives, even recycling or hardware refurbishment, can improve overall efficiency of technology infrastructure.

It’s the middle of 2010, so it’s highly likely you’re in the process of playing the budgeting game for 2011. Doubtless your staff is on the line for some kind of green initiative. So have you figured out how to make green IT part of the line items?

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Heather Clancy is an award-winning business journalist with a passion for green technology and corporate sustainability issues.

Disclosure

Heather Clancy

Writing publicly about what the high-tech industry is actually doing to help itself and the world get greener or more sustainable is one way I figure I can contribute more meaningfully to said effort. I am also a big OMG-kind-of-fan of smart leadership, which is why the goodly folks who publish this blog let me go on about this topic and why I am always on the hunt for forward-looking business management ideas.

My daily writing is focused on looking for topics for my blogs, GreenTech Pastures and Business Brains. I also write often about emerging technology trends such as mobile computing, unified communications and cloud computing. Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where a speaking engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and the topics that I am covering in my blog.

Biography

Heather Clancy

Heather Clancy is an award-winning business journalist with a passion for green technology and corporate sustainability issues. Her articles have appeared in Entrepreneur, Fortune Small Business, The International Herald Tribune and The New York Times. In a past corporate life, Heather was editor of Computer Reseller News, where she was a featured speaker about everything from software as a service to IT security to mobile computing.

Heather started her journalism life as a business writer with United Press International in New York. She holds a B.A. in English literature from McGill University in Montreal, Quebec, and has a thing for Lewis Carroll.

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RE: Green IT: Great intentions, no budget
greenocity 4th Aug 2010
I agree with the general comments, Green IT is not enough to make for a compelling business case, so unless we can measure and attribute costs, making a business case will remain a challenge for most IT departments.

Even hosted solutions, while helpful in removing the capital element will not solve the problem until companies can demonstrate the monthly savings to offset the monthly bills, especially as the savings will be lost in the larger facilities overhead costs, while the costs will invariably be in the IT operating budget.

At Greenocity http://www.greenocity.co.uk we are finding that even with the things discussed above you still need either enlightened IT leadership or a link between facilities and IT to drive this forward despite it being a "no-brainer" as Nemesis rightly called it.
0 Votes
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RE: Green IT: Great intentions, no budget
hayneiii@... 28th Jul 2010
You do not need to budget for green IT. Just budget for lower energy costs. That we do already. Sorry, but green is out, efficient is in.
We launched data center energy management software earlier this year and have seen that the budgets for ?Green IT? are often tied to virtualization.

What we?ve also seen is that the relationship between energy reduction initiatives and virtualization is much more complex. Eliminating scores of physical servers has an obvious impact on energy reduction. But these servers are often replaced with either high-density blades or fully configured, newer systems creating a new set of energy challenges. All in all, the ?before and after? from a green IT or energy reduction point of view is anything but obvious.

We maintain the position that you cannot improve what you do not measure. There are several ways to measure energy consumption in the data center; including our software which is quick to deploy and noninvasive. It?s worth adding such applications or tools to your overall Green IT and virtualization efforts.
http://www.viridity.com/blog
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RE: Green IT: Great intentions, no budget
Nemesis"T"Warlock 2nd Aug 2010
It's all well and good saying that you should budget for efficiency but the way many businesses work don't support this. That's part of the reason why Verismic created a hosted version of the PC Power Management solution to get rid of the up-front cost barriers for this no-brainer Green IT and efficiency project. http://www.verismic.com/
0 Votes
+ -
I agree with the general comments, Green IT is not enough to make for a compelling business case, so unless we can measure and attribute costs, making a business case will remain a challenge for most IT departments.

Even hosted solutions, while helpful in removing the capital element will not solve the problem until companies can demonstrate the monthly savings to offset the monthly bills, especially as the savings will be lost in the larger facilities overhead costs, while the costs will invariably be in the IT operating budget.

At Greenocity http://www.greenocity.co.uk we are finding that even with the things discussed above you still need either enlightened IT leadership or a link between facilities and IT to drive this forward despite it being a "no-brainer" as Nemesis rightly called it.

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