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Is cloud computing really greener or are we just passing the buck?

By | November 8, 2010, 5:40am PST

For the most part, the industry folks that I interview — not necessarily for posts in this blog — hold the view that technology has some positive role to play in reducing humankind’s impact on the environment. Yay for videoconferencing, they declare, because it cuts down on business travel! Or, at the very least, they trumpet the fact that it can help companies run more efficiently so that their impact is smaller. But below the surface, I’ve begun wondering whether or not technology sometimes simply displaces the impact. In other words, I think in some cases we might just be passing the buck.

I’m not the only one wondering this. That same sentiment was voiced during a panel about Green ICT (information and communications technology) I attended last Friday at the BSR Conference 2010, a gathering of corporate and non-profit executives with an interest in sustainability issues and strategy. Peter Madden, chief executive of Forum for the Future, a British York think tank says when a company encourages telecommuting to save energy and transportation costs, for example, often the costs associated with heating or cooling the person’s home office and (of course) keeping the lights and the electricity burning are conveniently overlooked.

So, one of the things that has really got me going right now is the whole cloud computing movement and what the transition over the next few years could mean for corporate energy costs and greenhouse gas emissions.

Microsoft just released research last week suggesting a dramatic reduction, if you use several of its applications in a cloud configuration. That makes all sorts of sense to me, because Microsoft can focus on running a smaller number of mega data centers more efficiently than lots of different companies running lots of smaller data centers.

But what happens to all the servers and equipment from the data center you are shutting down? Are those servers reused elsewhere? Do they enter the electronic waste stream? And, who is scrutinizing the energy sourcing decisions of the cloud service providers? Are they really focusing on those choices, like Microsoft is doing in Chicago, or are they making tradeoffs, as is the case with Facebook?

I recently spoke with a company that is hoping to play a role in answering those questions, at least among the telecommunications sector, which is a notorious user of electricity.

That company, Trade Wings of Portsmouth, N.H., is a supply chain management service provider for the telecommunications and networking industry. Todd Adelman, founder and CEO of Trade Wings, says this company’s customers typically aren’t able to find a reuse for their older routers, switches, base stations, antennas and such. “This stuff just sits there incurring transportation and storage costs,” he says. “We call this a stranded asset.”

Trade Wings works with the largest networking OEMs in the world to help ameliorate this, with a specific focus on aiding 900 or so carriers around the world. These are probably the ones that will become the cloud service providers, so you can bet that many are exploring upgrades, especially as the 4G movement evolves. In any case, Trade Wings takes that older equipment and focuses first on finding reuses, either in emerging markets such as Africa, or gives this technology a second life as spare or repair equipment. It has a software platform that helps it do this more efficiently than most of the OEMs can do it themselves.

Just last week, Trade Wings scored a deal with Telenor, which is a mobile network operator in Norway. Telenor is migrating entirely to an IP-base dplatform, which means that it will be decommissioning “thousands” of multi-vendor assets. Here’s why Telenor decided to work with Trade Wings:

“Corporate responsibility is a central component of our operational philosophy. As our industry confronts rising concerns over electronic waste and carbon emissions, our relationship with Trade Wings will enable us to further extend our commitment to reduce material consumption and transportation events by promoting reuse, and when necessary, disposing of equipment in a safe, environmentally responsible manner.”

If you want to read more about this topic and how it might apply to your own company’s data center assets, Trade Wings has created a white paper (although you will have to register to receive it).

As your business explores its own data center strategy, how much have you though about where those assets will go? If you can’t answer that question, your strategy might not be as green as you think.

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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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Cloud
cloud_zone 12th Nov 2010
Cloud computing is evolving fast. Today, organisations understand that they can use the model to cut costs, increase efficiency and be more responsive to changing market demands. They also know that the Cloud, with a range of ?public? and ?private? solutions available, can offer the security and information assurance to meet a range of needs.
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Don't know what the facts are, but
Economister Updated - 8th Nov 2010
I do know one thing for sure: companies will "wrap themselves" in Green, God, the Flag, Fat Free or whatever they think will help them sell products, at times no matter how outlandish their claims may be.

It reminds me of all the Republicans who denounce public/socialist health care ("Obama care") and claim to want "market based solutions", while at the same time they are all looked after quite nicely thank you on a government health care plan.

Isn't human duplicity a wonderful thing?
While there will be those gaming the system, as it were, to claim green credit they don't deserve, others do understand the environmental imperatives of out time and need the information and the means to reduce their carbon footprint. It's important to not let our cynicism over the cheaters lead us to tar everyone with the same broad brush. Indeed, cynicism is a cop-out every bit as dangerous as fake green.

One distinction Ms Clancy does gloss over a bit is that the businesses that retire old equipment will need to dispose of that equipment whether or not they choose a greener technology solution - like working in the cloud - to replace their old systems. In fact, these are separate issues, to which there are varying degrees of environmentally friendly solutions. One can toss the old equipment in the landfill and replace it with the same kind of energy hungry hardware. One can toss the equipment in the landfill and choose a more economical and energy efficient solution - assuming there is one. One can recycle the old equipment and replace it with updated versions of the same stuff. Or, one can recycle old equipment and replace it with a more environmentally friendly solution, again, assuming there is one available. The last option will undoubtedly be the most difficult to execute; it's reasonable to assume that most companies won't make the effort unless it ultimately leads to cost savings as well as environmental benefits.

Thus the real challenge is not only to find the best ways to dispose of old equipment, but to find green solutions going forward that are economically advantageous. Using the cloud might be greener as regards energy consumption, but will it be at least as efficient and reliable as existing hardware installations? That, unfortunately, has yet to be established.
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Reuse of electronics --- good or bad?
SeniorMoment 9th Nov 2010
This is a well considered article, but recycling is rarely as clear cut as everyone would like. An everyday example illustrates the point.

Are paper or plastic bags worse for the environment? It turns out the answer is they both have comparable negative impacts. Paper can easily be recycled at least once and is included in any serious recycling collection program, so paper bags are better than plastic bags--right? Or, plastic bags can be made from renewable non-petroleum based sources of plant oil, and so plastic bags are better than paper bags--right? The real world answer is both tax the environment and our natural resources about the same because of the impact of transporting them. Paper bags are much heavier to transport so a great deal more fuel is used to transport the paper bags both to stores that use them and back to paper pulp plants for recycling than plastic bags, which carry a lot for their weight. What is best is actually a third choice, bring your own more durable bags to stores.

The same is true with electronics. With enough energy usage almost anything can be recycled, but ultimately recycling is just a different manufacturing process that needs to be judged by each product's entire life cycle. Every effort needs to be made to recycle toxic components like the lead used as radiation shielding to avoid harm to ourselves or our descendants in both the near and distant future. All metals, such as metal cases and screws, can be recovered and reused easily, and I have heard that 95% of steel used in construction comes from recycling. Cooper and aluminum are very easy to recycle. by melting to separate the different metals or simply remolding the melted metal and reforming it into new products. I understand 95% of the steel used in construction comes from recycling.

The real question is whether or not we are doing the environment a favor by doing things like shipping energy hungry equipment to developing nations, for continued use, so they too can go through the same inefficient industrialization process and build all of the same carbon emitting power plants, hazardous waste dumps, etc. International law no longer allows sending products overseas to be recycled or disposed of. When can what appears to be "feel good" donations of outdated hardware for use in developing nations become a back door way to circumvent international laws on waste disposal?

I hope Trade Winds and similar companies always keep in mind what is good for the recipient of old equipment and not just the donor.

Few can object to making more spare parts available. When labor is cheap more frequent repair calls from taking advantage of used equipment is a natural, but affordable result.

The developing world has mostly been bypassing individual land telephone line installations in favor of cell phone towers, often powered by solar or wind energy. Too much "free" equipment can retard this positive change, especially if the donor doesn't support the means to ultimately safely recycle or dispose of the equipment when the developed world's use for it has expired. A recent article pointed out India has more cell phones now than toilets. Maybe someone can figure out a way to recycle obsolete electronics into very cheap self contained toilets for India.

Eventually, if mankind doesn't bring about its own end, future generations may be mining today's landfills, just as gold refining operations this century reprocess century old mill tailings to recover more gold when the price is high enough.

The best thing that new equipment manufacturers can do for the world is design all of their products for quick and easy recycling, and to build products that can quickly and cheaply be upgraded without replacing everything. I would still be using my earliest computer case if it were still compatible with later generation motherboards and today's components. With PC's removable back plates in cases, so the motherboard manufacturer furnishes a matching back plate were a huge step in reusing cases, while strictly proprietary PC case and interior designs are always a back step that often results in PCs that cannot meaningfully be upgraded. I am not familiar enough with telecommunications hardware to relate an example for that industry.
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Cloud
cloud_zone 12th Nov 2010
Cloud computing is evolving fast. Today, organisations understand that they can use the model to cut costs, increase efficiency and be more responsive to changing market demands. They also know that the Cloud, with a range of ?public? and ?private? solutions available, can offer the security and information assurance to meet a range of needs.

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