Green IT - A Global Problem and an Imperative Business Opportunity

Table of Contents

Chapter I: INTRODUCTION
1.1 Background of the Study
1.2 Literature Review on the Problem Statement
1.3 Objectives of the Study, Research Questions and Hypotheses
1.4 Significance of the Study
1.5 Limitations of the Study
1.6 Definition of Terms
1.7 Organization of the Project Paper

Chapter II: LITERATURE REVIEW
2.1 Synopsis
2.2 Meeting the Challenges – are we on track?
2.3 Detailed Research
2.4 Conclusions from Literature Review
2.5 Way forward

Chapter III: RESEARCH DESIGN AND METHODOLOGY
3.1 An Overview
3.2 Type of Research
3.3 Focal point of analysis
3.4 Sampling
3.5 Data Analysis
3.6 Conclusion

Chapter IV: Data Analysis and Findings
4.1 Overview of Data Analysis and Findings
4.2 Primary Research Objectives
4.3 Initial Interviews Outcomes
4.4 Quantitative Analysis
4.5 Qualitative Analysis
4.6 Summary of Analysis and Findings
4.7 Unanswered Points

Chapter V: CONCLUSIONS AND RECOMMENDATIONS
5.1 Overview of Main Findings
5.2 Meeting the Aim and the Objectives of the study
5.3 Recommendations
5.4 Shortcomings and Grey areas in the Research
5.5 Summary and Conclusions

List of Tables

Table 1: Problem Variables

Table 2: Green IT Conceptual definition from different literatures

Table 3: Framework for environmental sustainability (Watson, 2008)

Table 4: Power Consumption Measurements

Table 5: Potential Overall Cost Savings (Microsoft, 2009)

Table 6: Research Schedule

Table 7: Schedule Gantt chart

Table 8: Participant's Demographics

Table 9 Interview Participant details

Table 10 Survey Question on Green Data Centers

Table 11 Survey Questions on Cost Saving

Table 12: Q1 Response Distribution

Table 13: Q2 Response Distribution

Table 14: Q3 Response Distribution

Table 15: Q4 Response Distribution

Table 16: Q5 Response Distribution

Table 17: Q6 Response Distribution

Table 18: Q7 Response Distribution

Table 19: Q8 Response Distribution

Table 20: Q9 Response Distribution

Table 21: Q10 Response Distribution

Table 22: Q11 Response Distribution

Table 23: Q12 Response Distribution

Table 24: Q13 Response Distribution

Table 25: Q14 Response Distribution

Table 26: Q15 Response Distribution

Table 27: Q16 Response Distribution

Table 28: Server Growth Savings

Table 29: Server Power Savings

Table 30: CO2 Emission Saving

Table 31: Total Cost Savings

Table 32: Environmental Savings

List of Figures/Illustrations

Figure 1: Green Grid (2009)

Figure 2: Green Forests

Figure 3: Global Annual Economy

Figure 4: The GITAM, (Molla, 2008)

Figure 5: Gartner (2007) Statistics of CO2 Footprint for 1000 servers

Figure 6: Image for Virtualization Concepts

Figure 7: Statistics for Cost Saving Comparison (Microsoft, 2009)

Figure 8: Percentage of savings from Virtualization (Microsoft 2009)

Figure 9: Sample Distribution

Figure 10: Response on Climate Change Impacts

Figure 11: Primary Concerns of Enterprises

Figure 12: Cost Saving as a Major Concern

Figure 13: Important Business Drivers

Figure 14: Q2 as Negative statement / Figure 15: Q1 as Positive Statement

Figure 16: Q3 as Positive Statement / Figure 17: Q4 as Negative Statement

Figure 18 : Q5 as Positive Statement / Figure 19: Q6 as Negative Statement

Figure 20: Q7 as Positive Statement / Figure 21: Q8 as Negative Statement

Figure 22: Q9 as Negative Statement / Figure 23: Q10 as Positive Statement

Figure 25: Q12 as Negative Statement

Figure 24: Q11 as Positive Statement

Figure 26: Q13 as Positive Statement / Figure 27: Q14 as Negative Statement

Figure 28: Q15 as Positive Statement / Figure 29: Q16 as Negative Statement

Figure 30: Correlation Scatter Plot

Figure 31: Benefits from Server Virtualization

Figure 32: Virtualization targets urgent IT issues

Figure 33: Measurement of Green IT benefits

Figure 34: Green IT Value Realization

Figure 35: Power Savings

Figure 36: Environmental Savings

Figure 37: Data Center Assessment (Mingay, 2007)

Figure 38: Rapid Business Justification Process

Figure 39: Implementation Plan

Figure 40: Implementation Gantt chart

Figure 41: Sample Size Calculator (Creative Research Systems, 2009)

Figure 42: Sample Size Formula for the Calculator (Creative Research Systems, 2009)

Figure 43: Sample Error Calculation (DSS Research, 2009)

List of Abbreviations, Symbols/Specialised Nomenclature

illustration not visible in this excerpt

Chapter I: INTRODUCTION

1.1 Background of the Study

Environmental concerns are obtaining incremental attention from business entities and governments across the globe. Davos (2007) quoted in the world economic forum published by Mingay (2007) in Gartner’s report, “Climate change voted the most important shift that affect business, technology, society and the global economy”. Enterprises are realizing the significance of the problem and are taking a drift from corporate social responsibility towards long term sustainability with increased emphasis on environmental issues (Scoot, 2007).

It is evident that businesses are concerned about the climate change problem and are investing a huge amount of capital towards the initiative of mitigating these crises (ACA Research, 2007). IBM recently has commenced a Big Green project worth billions of dollars to escalate development of green services and products (Kerwan, 2007).

Even the prominent International Standard Organization has been attempting to harmonize the environmental requirements for all the industries throughout the world (Wingard, 2001). The recently emerged contemporary standard of ISO 14000 is developed keeping in mind the pressure of environment responsibility to improve sustainable standards for businesses (Pratt, 1997). Similarly every industry is coming up with green initiatives to embark upon this global issue and in the stream of MIS, ‘Green IT’ has been very prominent as part of the solution in recent times.

1.1.1. The Problem

A survey done by InfoTech (2009) research group reveals astonishing conclusions that companies can take Green IT initiatives for 40% sustainment towards environmental benefits and 60% to gain advantage towards business. But to a surprise there is lack of awareness among many senior managers how Green IT initiatives can be a cost saver for organization planning to implement them.

An article from Harvard Business publishing by Lurie (2009) reveals that not all organizations have the right resources to comply with environmental issues efficiently and turn them into business advantages. In the article the author has listed top five common traits related to sustainability issues by organizations as follows,

There is a lack of understanding in the potentials toward business advantage: Organization leaders relate to Green issues as some technical fulfilment of purchasing costly hardware and delegate it to the lower staff.

Commitment to sustainability issues are scattered: Many organization fragment the responsibility so thoroughly that it either just stays at the CEO level or distributed at all level without having any focus on it.

Business plan does not have any section for sustainability issues: There are no formal processes defined by organization with proper planning included in the annual agenda towards pursuing such strategies.

There is inadequate green metrics to measure the impact on environmental issues: There are no measures to validate the progress towards building a sustainable business environment.

Self referential relationships with key NGOs are at best: Companies are not making stronger relationship with n on-profit groups such as WWF International and the Sierra Club . Mos t commonly the relationship is just episodic interactions or lots of personal employee relationship that does not seem enough.

Gia Brazil Environmental Scientist Science Applications International Corporation (SAIC) appropriately quoted in the survey done by BPM forum (2008), “I think it’s a common myth that businesses believe that in order to become greener they have to spend more money. So I think that it’s more often a challenge to help businesses realize that by being green they will not only achieve more efficiency and better results environmentally but also can lower their bottom line.”

UAE is one place which has started showing concerns towards environmental issues and has contributed with multiple approaches. As published online by Bowman (2008) in ITP news, Dubai Road and Transport Authority announced an environmental friendly green technology initiative aimed in reducing overall electricity reduction in all its buildings. There are many construction projects also on the way with the same initiative. With the technology advancement and modernization aggressiveness, Dubai is known as an IT hub for the entire Middle East region. The ruler of Dubai, Sheikh Mohammed is keen in finding appropriate Green initiatives in all industries (ITP Digital, 2008).

As per Arabian Business publications (ITP Digital 2008), citations by Al Gergawi, “Sheikh Mohammed has keen interest in dealing with the current environmental challenges. The move is also part of The Dubai Strategic Plan 2015 announced earlier by him”.

With the base established from the above research, the purpose of the current study is to assist organizations streamline their understanding that Green IT enablement is not only for a significant reason of environmental sustainment, but is also a great business advantage. Organizations need to have both perspectives in place to have aggressive plans towards Green IT initiatives.

1.1.2. Problem Statement

Companies typically relate Green IT enablement to environmental benefits and do not distinguish its business advantages. Green IT is often considered as a cost element of getting technically compliance by just buying energy efficient servers in the data centres. Therefore the problem identified is that there is no measurement model to quantify cost savings in relationship with Green IT Data center enablement for UAE based listed companies.

1.2 Literature Review on the Problem Statement

High amount of energy is consumed in data centers that have been increasing from the past few years. As per National Data Center Energy Efficiency Information Program (NDCEEIP) a central body in US, 61 billion KW was consumed in the year 2006 per hour that was double of what was being consumed in the year 2000. The same is projected to increase further by 80 billion KW by end of 2009.

Modern technology innovations can reduce energy drastically and provide huge amount of cost benefits to enterprises running data centers. As per a report done in Aug 2007 by Andrew Winston on Harvard business review, 10.7 billion KW of energy can be saved till 2011 if the data centers were efficient only by 10% in the US.

illustration not visible in this excerpt

Figure 1: Green Grid (2009)

In the same article Winston (2009) also highlights “Going green drives innovation and creates value in four fundamental ways: cost reduction, risk mitigation, revenue growth, and brand value enhancement. But for 2009, the top priority will be the first one, lowering costs (primarily through so-called eco-efficiency)”

Even if the cost is reduced currently there is no standard measurement model to quantify in actual the total amount saved. As Strassman (1985) says, "you cannot tell whether you have improved something if you have not measured its performance". The lack of measurement of business benefits is a common problem in IT. As surveyed by Gartner (1992) only 12% of the professionals thought measuring benefit is important. The reason derived was that data center managers who had an IT background focused only on technology benefits rather than business gains. As Merlyn (1992), says: "In general, the state of measurement and quantification in MIS is woefully inadequate. Most justification today requires plenty of faith."

The IS measurement practices for business benefits are inadequate and further developments are greatly required.

1.3 Objectives of the Study, Research Questions and Hypotheses

1.3.1 Aim

To define a process that would assist in quantifying business benefits of Green data center implementation approaches.

1.3.2 Objectives

- To articulate the most effective and widely accepted Green IT initiative by exploring its concepts along with the implementation approaches.
- To research different initiatives taken by organizations in UAE in terms of Green IT data center enablement.
- To analyze Green IT data center relationship with cost savings business advantages.
- To discover cost advantages of implementing server consolidation in Data Centers for Green IT.
- To investigate existing methodologies for measuring business advantages of Green Data center Enablement.
- To recommend a measurement model to quantify cost savings with server consolidation.

1.3.3 Research Questions

- What are the different aspects of Green IT and how does it relate to business advantages for organization?
- Is there any existing model that supports enablement of Green IT for organizations?
- What is the main area of focus where Green IT implementations can benefit the most in environmental sustainability and cost savings?
- What is the relationship between Green IT Data centers enablement and business advantages in term of cost saving?
- What are the different initiatives taken by organizations in the UAE region for Green data center enablement?
- What are the environmental impacts caused due to not implementing these approaches?
- How can companies implement standard measurement model to gauge business advantages of Green IT enablement?

1.3.4 Research Scope

To have a detailed analysis on the problem identified, the scope of the study covers 15 organizations holding data centers in UAE. Data center managers and key members of these companies were questioned in structured interviews as well as informal discussions to analyze the problem. The scope relates in investigating server consolidation approach to enable Green data centers. The business advantage identified part of the scope as a variable is cost saving relating to Green Data center enablement in UAE.

1.3.5 Focus of the study

The research focus is to analyse contemporary technology like server virtualization in order to define a measurement model to quantify Green IT advantages in data centers. The study focus is to address a global issue that has been a concern around the world and also relates to tapping the opportunity arising out of it.

The outcome is riveted to provide a safer planet and have cost efficient operations using IT advancement.

Currently there are numerous researches done on segmented elements that assist to enable Green IT. On the whole there are inadequate resources that define standards for solutions that enable IT vendors to promote a suite of offering in the Middle East region.

1.3.6 Hypothesis

Primary hypothesis (HA) states that there is a strong positive relationship in Green IT enablement and Business Advantage for companies located in UAE, i.e. higher the enablement of Green IT Data-centres better cost saving in terms of business advantages are achieved. Secondary null Hypothesis (HO) states that there is no relation between Green IT enablement and Business Advantages.

1.4 Significance of the Study

Due to continuous technology development there has been a tremendous increase in the capacity to extract additional natural resources from the past decade. As citied by Dr. Daly (2008) Senior Economist in the Environment Department “the larger system is the biosphere and a subsystem is the economy. Our economy is geared towards growth whereas the parent system does not grow, it remains the same size. So as the economy keeps growing it encroaches upon the environment and this is the fundamental opportunity cost of continuous economic growth. That’s what you give up when you expand and lead towards scarcity of what used to be there.” Current basic flaw of economics is that nothing is accounted for the things nature does for us. Even with the latest technology advancement still there are some things which technology cannot do for us and only nature does.

For example, pollinating of all the flowering plants and also taking all the carbon dioxide out of air and putting oxygen back into the ecosystem done for no cost at all by nature.

As rightly quoted by Suzuki (2008), Scientist, Environmentalist and Broadcaster, “it's possible to do a crude estimate of what it would cost us to replace nature. Well, it turns out, Constanza et al. (1997) –estimated it would cost us $35 trillion a year to do what nature is doing for us for nothing. Now, to put that in perspective, if you add up all of the annual economies in the world at that time it came to $18 trillion. So nature was doing twice as much service for us as the economies of the world. And in the madness of conventional economics, this isn't in the equation.”

illustration not visible in this excerpt

Figure 2: Green Forests

illustration not visible in this excerpt

Figure 3: Global Annual Economy

We as professionals have been trained that the objective of the business is towards growth without understanding the means to endless growth. This mindset of business growth has further contributed in destroying natural resources and effecting quality of human life on the planet earth as highlighted by Stephen (2008) as a message for year 2100 in the documentary the 11th hour.

Businesses are now apprehending that environmental initiatives especially Green IT does not just reduce the environmental impacts but also provides operation advantages by reduction of energy use for the organizations as per a survey done by InfoTech research (2009).

Companies taking stronger initiatives in environmental and efficient processing practices understand a significant fact – “that they can save green and be green at the same time. In other words, it’s not cost prohibitive to be environmentally sound, but rather helps save substantial sums of money – to the tune of hundreds of thousands to millions of dollars annually-- in the long term.” (BPM Forum, 2008)

Approximately 89% of US companies and 62% of European will use information technology to manage CSR (Corporate Social Responsibility) that includes Green IT as a top priority. Also about 70% will have a dedicated budget for these initiatives in the coming years. Strategic sourcing to enable green supply chain, logistics control and optimization, continuous process improvement and virtualization would be some notable areas where corporations will be having emphasis toward CSR initiatives (AMR Research, 2007).

Green IT is no more an optional issue but a necessity (Murugesan, 2008). Green IT will evolve a dramatic change in priorities of IT industry business. President Obama had announced a $15 Billion package dedicated per year towards catalyzing greener initiatives in the private sectors (Stewart, 2009).

All the above signifies the requirement to study and adopt Green IT initiatives not just for environment benefits but to also adhere to immense business advantages. The purpose of the study is to encourage managers and top IT executives to take Green initiatives towards sustainment along with realizing business advantages with a clear quantified measurement model.

Businesses just can’t take initiatives towards the sentiments of saving the planet but rather need an opportunity. The study reveals that implementing Green IT initiatives has a positive impact on the environment, saves cost and at the same time uses technology more efficiently.

1.5 Limitations of the Study

The study is limited to understanding of the business advantages in terms of cost saving for Green data center server consolidation implementations. Other business advantages and Green IT approaches are not considered as part of the scope of the study. Analysis of respondents is limited from 15 data centers based in UAE.

The outcomes of the study are limited to cost saving measurement model for server consolidation in data centers, generalization of other business advantages outside the variables identified may not be appropriate.

Survey conducted is relying on the experience and subject knowledge of project participants. Different implementation advantages referring to different organization may have a bias effect on the responses in the questionnaire.

1.6 Definition of Terms

1.6.1 Green IT Enablement

Green IT is defined as enabling infrastructure solutions to assist lowering power consumption to reserve overall energy resources for environment sustainment. In the study Green IT enablement focus is specifically to derive higher power efficiency from IT data centers.

The solution considered for enabling Green IT data centers is server consolidation with virtualization technology. With the effective use of computing resources, Green IT also strives in providing economical benefits.

1.6.2 Data center

Backend computing facility to cater consistently to several users, and substantially equipped with networking devices, hardware servers, software appliances, power conditioning, backup and security components, etc. Data center implemented with initiatives that reduces the CO2 emission by controlling the overall energy consumption with different approaches are termed as Green Data Centers.

1.6.3 Server Consolidation and Virtualization

Server Consolidation is one of the approaches studied for Green IT enablement to derive efficient usage of server computing in data centers. With virtualization technologies it has means to reduce the overall number of servers implemented for the organization operation needs.

1.6.4 Business Advantages

Business advantages are operationally defined for the study in terms of overall cost saving by implementing different Green data centers approaches identified for the study. Cost saving with quantifiable measurement model is analyzed for implementing server consolidation and IT recycling initiatives to reduce environmental impact.

1.7 Organization of the Project Paper

The study is organized in to five chapters; the initial first chapter includes the above introduction to form a base of the study. Following rest of the four chapters includes the below details,

Chapter 2 includes elaborated literature review; it covers prior research and background study of multiple journals, white papers and previously done thesis on similar subject. The purpose of this chapter is to review previously done literature done on the problem defined and investigate unanswered questions for further research.

Chapter 3 covers primary research plan for the study. The purpose of this chapter is to rationalize the structure, sampling plan and methodology of data collection and analysis. The plan made in this chapter intends to hold all the elements of the research project undertaken together to analyze the problem defined for the study.

Detailed analysis of the data collected from research surveys and interviews will be addressed in Chapter 4. Findings established from the analysis will be covered in this chapter. The finding will be based on quantitative as well as qualitative analysis to make complete sense of the data collected transforming it in to useful information.

Chapter 5 is the most crucial chapter as it concludes the study with recommendations using all the above chapters’ findings and analysis. The recommendations aim to provide resolution to the problem defined and to have answers for all the research questions outlined as part of the study. In a way this chapter links to the initial introduction by responding with conclusion to all objectives specified initially.

Chapter II: LITERATURE REVIEW

2.1 Synopsis

This chapter attempts to review past academic and non commercial literatures to form a theoretical base towards a methodological literature review. The aim of this chapter is to investigate previously research done on the problem defined and discover unanswered questions for further research.

Therefore to unfold the known factors, initially concepts of Green IT with its different definitions and implications are explored. Any existing models and frameworks to enable Green IT solutions are studied.

To analyze further, Green Data center for its advantages and implication of environment sustainability are reviewed. The approaches identified as variables of Green Data center enablement are analyzed to understand their relationship with cost saving. Finally a critical review is done on any existing methodology that quantifies cost advantages against the Green IT enablement approaches.

2.2 Meeting the Challenges – are we on track?

Initially different reliable sources are explored for Green IT definitions including IT Governance Publishing, ACS (Australian Computer Society), Forrester and Gartner research group. The purpose is to aid the study in forming a firm conceptual foundation that would comprehend Green IT appropriate application and relation towards business advantages.

Literature done on ‘Green IT Adoption Model’ created by Molla (2008) for the School of Business Information Technology for the Conference on IS, is studied to provide a theoretical foundation of how Green IT adoption is initiated in organizations. Its assists in understanding the dependent variables that influence as drivers for Green IT enablement. Analyzing this model will assist in the study to correlate appropriate driver as variable to encourage Green IT adoption. Also different frameworks for Green IT opportunity identification by Watson (2008) in his book “Green IS: Building Sustainable Business Practices” are studied to analyse that the variables identified for the study are crucial drivers of Green IS implementations.

Green data center business and environmental benefits with their initiatives in UAE are reviewed from the research done by Gartner, IDC research and APC (American Power Conversion) white papers published on MIS Quarterly.

To substantially justify the correlation of the variables and criticality of the problem, literature on server consolidation with cost saving benefits are reviewed from sources including MIS Quarterly publications, IEEE digital library and Microsoft Corporation articles.

Further significance is derived by reviewing literature done Ertl, Microsoft white papers and other measurement models that assist in quantifying the variable relationship to have adequate criticism of the design and methodology. It will also assist in confirming the uniqueness of the problem and to investigate the unanswered questions by previous literatures for further research.

2.2.1 Literature Review Evaluation

Literatures reviewed are initially evaluated based on its topic and the publishing year as 2005 to 2009. In certain cases, papers before 2005 are studied if they enlighten any foundation to the subject of Green IT.

Generally the articles chosen were preferred based on the topic, detail of analysis and the published date. Three basic criteria are established to ensure the quality and credibility of the source for the literatures selected to be reviewed as below:

1) Source location – if the article is part of a scholarly journal published for a university, industry trade journal or referenced in a determined IS academic/ non commercial database, it is considered to be credible;
2) Audience - if the literature is published for advanced IT professionals understanding rather than general user’s overview, then it is deemed to be quality paper of literature.
3) Non Commercial: If the article is published by a non academic institute from a business entity but does not focus on advertisement of a specific product or services, it is assumed as credible article for review.

2.3 Detailed Research

2.3.1 Green IT Conceptualization

There is immense pressure on organizations to take initiatives towards green movements to reduce the environmental footprint. As citied by Mines (2008), Information technology is a major consumer of energy in many organizations and has been in forefront recently in the debate of environmental impact on businesses. As per a research done by ACS, Australian IT industry contributes 1.5% of CO2 emission that is more than the contribution from civil and aviations industries in the same region (ACS, 2007).

Green IT also reveals a rising evidence for business sustainability in terms of green strategy, green supply chain and environmental technology implementations for driving positive product image, influencing outlook of customers and investors (Holt, 2005).

As an outcome, enablement of Green IT solutions is considered as crucial factor not only for environmental sustainment but also for sustainability of businesses. Due to the same reason numerous organizations are showing keen interest and are expected to board on the Green IT bandwagon during 2009-2011. This is estimated to increase the expected consulting service revenue to US $ 4.5 billion by 2013 (Mines, 2008). But still extent of Green IT enablement against actual realization of benefits is ambiguous (Molla, 2008). Other than white papers and internet blog articles, there is still inadequate systematic research on what drives Green IT enablement. As appropriately highlighted by Molla (2008) in the proceeding of Australasian Conference on Information System, Green IT is an emerging field and in general there is a lack of academic research on the subject. With the recent surfacing, Green IT has been viewed in different perspectives by organizations, in order to form certain conceptualizations. Below table illustrates different insights from previous literatures on the enablement of Green IT.

illustration not visible in this excerpt

Table 2: Green IT Conceptual definition from different literatures

2.3.2 The Green IT Adoption Model (GITAM)

Discovering the lack of awareness of Green IT advantages among senior managers, Molla (2008) came up with an adoption model in his study “GITAM: A Model for the Adoption of Green IT”. Since Green IT relates to different approaches the base of the model attempted to from the main IT domains of adoption. The model formed was influenced by technology environment organization (TOE) framework and the perceived e-readiness model (PERM) to unify features of four core areas of adoptions i.e. technological, managerial, organisational and institutional.

With the framework the objective of the model is to derive Green IT intentions from static Green IT contextual variables along with dynamic Green IT readiness dimensions to form firm Green IT driver towards Green IT adoption.

The static contextual variables relate to implementing contemporary IT assets and solutions either for technological context or for organizational growth context or just for environmental context.

Green IT readiness ultimately “captures a dynamic assessment of an organisation’s own and environment preparation to accept Green IT. It purposes is to capture the perceptual characteristics of the adoption context” (Kuan and Chau, 2001).

Finally the strong order drivers formed out of Green IT context and readiness emerge economical benefit, regulatory pressures and ethical responsibility of an organization. That in turn converts the organization’s intention to action that adopts Green IT solutions.

illustration not visible in this excerpt

Figure 4: The GITAM, (Molla, 2008)

Review Comments: The proposed model is a substantial theoretical model for studying adoption of Green IT in organizations. The author has attempted to cover all different context and perspective that can drive organization to enable Green IT. It defines clearly the dependent variables that can influence the adoption of Green IT. But there is a lack of complex interactions from adoption that associates from Green IT. There is no derivation of the after effects in terms of business advantages of implementing such a model to encourage Green IT adoption.

2.3.3 Green IS Opportunity Identification Framework

Watson (2008) in his book “Green IS: Building Sustainable Business Practices” has uncovered several frameworks that assist in identification for Green IS opportunities in an organization. Each framework highlights different goals that lead to Green IS contributing towards sustainable business processes.

One of the frameworks design in terms of environmental sustainability objective has three highlighted goals, pollution prevention, product stewardship and clean technology.

These goals are applied at three different levels of individual, organizational and societal to identify Green IS opportunities and deploy them. Below table illustrates the combination of these goals and its three levels,

Table 3: Framework for environmental sustainability (Watson, 2008)

illustration not visible in this excerpt

To achieve pollution prevention goal in an organizational context with Green IS, the author has pointed out the method of server consolidation. It is stated as the most popular energy saver aspect in data centers to achieve reduced energy consumption. Also it is identified as the primary driver at the organization level to improve overall environmental sustainability.

Other framework designed in the study is about aligning corporate strategy with environmental sustainability. Strategic issues of aggregation, adaptation, and arbitrage are addressed in this framework in the perspective of creating sustainable business practices to gain competitive advantages.

The initial strategy of aggregation seeks economics of scale by aggregating development and production processes. The core purpose of this strategy is to reduce cost by accumulating activities towards the most optimum efficiency.

The study proposes information systems to measure and monitor cost savings in each phase for implementing any Green IS initiatives. Such a tool will assist in coordinating and aggregating several instances that will minimize overall emissions. An example is highlighted by the author is virtualization technology that aggregates several servers into one server to increase utilization and in turn helps in lowering costs.

Review Comments: With both frameworks it is evident that the variables identified for the current study are crucial and important drivers towards business as well as environmental sustainment. The book has pointed out multiple frameworks and has attempted to cover all aspects that can be identified for Green IS opportunities. Though server consolidation and cost saving relation has been justified but there is no strength evidenced between the variables. Significance of a measurement model is also proposed to monitor cost saving activates for Green IS implementations.

2.3.4 Green Data Centers Significance

Data centers are the main areas where the significant proportion of energy consumption contributes towards total cost of the entire problem. Accenture (2008) estimated that 1.5% of total power consumption in US is made by data centers that cover total cost of USD 4.5 billion dollars towards energy cost. Due to these reasons most of the definitions derived for Green IT also have a narrow focus to save overall cost of data centers to maintain environmental sustainability. As stated by Molla (2008), enabling Green IT in data centers covers environmental consideration in both the areas of operations and design by implementing greener solution in IT infrastructure for servers, storage and network and by obtaining efficient lighting, power deliver and cooling systems.

From the previous reviewed GITAM model, if economical driver is taken in to consideration for enabling Green Data Center solutions there pursues a tangible amount of cost in operations. As per the analysis done by IDC (2007), the volume of stored organizational electronic data had surpassed one million terabytes which is anticipated to reach zatabyte by 2010 (IDC in Brocade, 2007). More amount data means larger server farms and need of additional power to sustain them. Typical data center management will lead to huge amount of increment in servers with the required real estate to accommodate them (Rasmussen, 2006). The cost of power and other interdependencies with typical management is expected to substantially raise overall IT cost and electrical equipments.

Moreover a research done by Gartner (Mingay 2007), reported the below statistics likely to occur if data centers are managed in a typical model of one server for one application. The need of finding appropriate approaches to save cost as well as environment footprint is essential for long term sustainment of organization. As shown below, 16,568,000 kg of emission can arise from 1000 servers consuming 350W of power in the next 3 years. The more servers are reduced in data centers the better will be rate of power emission towards energy efficiency.

illustration not visible in this excerpt

Figure 5: Gartner (2007) Statistics of CO2 Footprint for 1000 servers

The need of decreasing power consumption, real estate costs and cooling of equipments will drive organizations to turn to Green IT (Rasmussen, 2006). Some contemporary Green IT initiatives such as Server consolidation with virtualization can substantially save cost and provide environmental sustainment to organization (Accenture, 2008).

2.3.5 UAE initiatives for Green Data Centers

Recent publication made by Fujitsu Siemens on AME info (2009) reveals that in the UAE region ‘Green’ data centers are immensely increasing priority on the ‘to do’ lists of IT mangers and CIOs in different organizations. UAE region has registered almost the highest real estate price rating in 2008 and even the cost of energy is on the higher side in the region. As quoted appropriately by Rajesse (2009) Managing Director for the Middle East, Fujitsu Siemens Computers, “daily and weekly power and air conditioning consumption of a regional bank or telecoms operator's data center can be greater than that of the monthly power demands for thousands of homes. By using strategies such as virtualization or resource pooling plus automating more processes, organizations can make 'green' choices that help their businesses by reducing costs as well”

Upcoming organizations have started showing keen interest towards Greener data centers, As per Ibrahim (2007) IT Strategy Manager, Dubai Airports have launched two new totally green compliance data centers. These are made in consideration of all the green elements including, implementation of energy efficient systems, green building construction, waste management, asset recycling, energy efficient operations and supported services like high use of server consolidation to minimize the servers to be installed.

Towards the same initiative of green data centers, Etisalat (UAE) the biggest telecom service provider has launched two 10,000 sq ft of floor space data centers. The central theme of these centers is to aggressively support contemporary technologies of on-demand computing and virtualization services to different organizations intending towards such services.

Mr.Hashim (2009) VP, Business Solutions, Etisalat quoted that, “Given the challenging economic environment, we are seeing rapid adoption of our e-hosting & cloud computing services in the region as companies move towards entrusting their systems”. By hosting with such data centers and server consolidation, organizations save total space and energy cost against managing the servers in their premises.

Review Comments: From the above review, it is evident that the waves towards greener data centers have begin in the region. But it is still in early stages as there is no evidence of existing data centers planning to convert or getting compliment in green approaches. Cost benefit model for Greener IT data center would assist such existing organizations to take stronger initiatives in the direction towards environmental sustainment.

2.3.6 Server Consolidation Significance

“Server consolidation is an isolation of one computing resource from the others: Virtualization technology for server consolidation results in more efficient resource utilization, and enables greater flexibility and simplified change management” quoted in the Microsoft Virtualization Presentation event by Tamer, S., (2008). Literature article by Mathew (2007) for University of Marryland published on MISQ, defines server consolation as a means of running logical multiple isolated servers within a single server.

With the technology it allows to concurrently execute multiple operating systems each on its own virtual machine with an allotted distributed hardware not affected by any other virtual system machine on the same single server. With server consolidation on the same single server Windows XP, Linux and Windows Vista can execute in its own isolated virtual machine without impacting the others. The physical server is determined as the host and the virtual servers installed are the guest of the single base system. If the host system goes down but naturally all the guest virtual machines will be down identified as a disadvantage of the technology.

With proper planning and implementation of virtualized servers, different organizations have achieved large scale server consolidations that assist in shutting down of physical servers to achieve maximum energy optimization. As stated by Tamer (2008), virtualization technology pools common server resources to break the legacy one application to one server model. Virtualization technology effectively manages and takes autonomic control over the server computing in the data centers running heterogeneous mix of workloads as citied by Steinder et al (2007) on IEEE.

The author also emphasizes the significance of virtualization technology along with numerous challenges to have a wider range of applications implemented in virtual servers instead of physical boxes (Steinder et al, 2007). In the past few years due to environment reasons, pressure to save data centre’s high power consumption has been mounting tremendously resulting towards fast paced adoption of server consolidation with virtualization technology. As per a report published by IDC (2008), Server Virtualization is outperforming all major hardware server products to save $20 billion revenue towards physical server implementation services in the next 5 years.

It is been recently discovered that server computing technology is in the direction of transformation to newer virtualized approach for heterogeneous legacy applications.

illustration not visible in this excerpt

Figure 6: Image for Virtualization Concepts

As shown in the above illustration using server consolidation, the entire 11 servers are virtualized into two core physical servers to obtain optimum utilization. The servers computing power in actual physical boxes prior to virtualization was underutilized on an average to 9%, increasing cost overheads.

[...]