light bulbs
Many IT leaders have not been affected by soaring energy prices - yet

How will IT manage the rising energy bills?

Leading CIOs and supplier experts give their opinions on what surging oil prices mean for their firms

Written by Angelica Mari

The corporate IT agenda could be transformed if sustained oil price increases continue, but the issue does not seem to have affected IT leaders yet.

With 89 per cent of UK businesses ignorant of the IT energy bill, 76 per cent have no set targets to reduce power consumption in that area, and only 12 per cent charge the IT department for their power bills, according to research.

Energy demands from information processing systems are rising, with suppliers such as IBM expecting a six-fold increase in server use and the volume of stored data to grow 70-fold in 10 years.

For some businesses, energy consumption has become an issue, and IT decision-makers are under pressure to drive availability and efficiency while also saving electricity costs.

Strategies such as that of transport group Go-Ahead show evidence of growing concerns with increasing electricity costs.

A single team jointly runs the IT and procurement functions of the business, and is using technology to save energy costs via projects such as diverting the energy used in train breaking to save on consumption elsewhere.

“Only 24 per cent of organisations are working towards a set energy reduction target,” said Tim Turquand, consultant at integrator Morse.

“Without a way to measure how much power the IT department is consuming, businesses trying to reduce energy usage can’t set a definite reduction target. And without a target, there is no way to tell if the steps you are taking actually work," he said.

“Setting targets, measuring against them and billing each department for their energy consumption is crucial because it increases accountability. This gives departments the incentive to become more energy-efficient.

"These must be the first steps of any organisation wanting to reduce its carbon footprint. Misunderstanding the costs of making IT more energy-efficient has held back progress.”

Chief information officers (CIOs) must question how much processing is done in the IT environment, how much data is held, and for how long, said Ovum principal analyst Graham Titterington.

“The present tendency to hold everything that it is technologically possible to hold will have to be challenged. We need systems that can store a single copy of a document and not replicate it multiple times across the organisation, without this placing complexity on users,” he said.

“If a practice is worth doing we will need to justify it by identifying balancing savings outside the realm of the datacentre.”

Read here about how the surge in oil prices is threatening IT departments. And the industry gives its warnings on the issue here.

Below, read what some IT leaders have told Computing about how skyrocketing energy prices are affecting their plans:

  • The cost of utilities is only going up and anything you do to reduce costs,
    particularly in the current economic environment, has to be a good thing. Pressures from senior management to run financially viable IT are huge, mainly because of increasing utility costs and the focus on reaping the corporate social responsibility benefit. From a general facilities infrastructure perspective, there are other concerns which may come up when capacity will be an issue.

    John Bovill, chief information officer, Mosaic Fashions

  • The energy spend element is included in our datacentre administrationcontracts with third parties. We do not see the power bills in particular, but we see it in the sense that their rates seem to be going up.

    The way we are looking at our power consumption is via a fairly traditional server consolidation exercise. Most organisations will not be running their servers at really high utilisation levels.

    We are moving into a virtualised world, where we will transfer more demanding applications onto VMware servers, with processors running at 100 per cent capacity. If the net effect of consolidating servers is less power consumption, then it is a great side benefit, but not the main reason for doing it.

Simon Post, chief technology officer, Carphone Warehouse

  • It is not something I am particularly worried about, because we are heavily outsourced and so somewhat insulated. Is it going to drive up the margins of my outsourcing? Yes, probably, but it’s not that big a problem.

    Chris Coupland, director, BAE Systems

  • We are looking at the way we are hosting our data and our datacentres’ structure anyway, so increased focus on energy efficiency will be part of that. Have we done that before? Yes, to some extent. Is there more focus on that now? Clearly, because there are more headlines about it and we understand the costs are greater.

    Richard Mintern, chief information officer, Monarch Airlines

  • It is part of the overall rainbow of costs that we have to manage, but I doubt that it will drive us to do anything different. Obviously the cost to the environment, the cost of physical space and of the people who support your datacentre ­ all these things go into informing your decisions.

    Maggie Miller, chief information officer, Warner Music Group

  • Making better use of energy is part of a wider business agenda and technology is a component of it.

    Consolidating data storage and stepping up virtualisation is part of the plan and we will use it for some of our larger, power-hungry servers. But if you have lots of power sources going in, you improve things from a technology perspective but that does not necessarily make a difference in power usage.

    Making a better use of energy is part of a wider business agenda and technology is part of it. It is not about what IT does on its own, but what it can actually deliver.

    As a result of our actions so far, usage of electricity has already been reduced, as well as the carbon footprint of the group. We carefully review every step that has an energy element involved – if we don’t need to do it, we will not do it.

Dave Lynch, group technology director, Go-Ahead

  • I am concerned about this, but not so much in terms of keeping the IT lights on.

    Victoria Ferauge, IT director, Dassault Systemes

  • Power consumption is an additional aspect to the business cases we look at when investing in new hardware. It has to use less power.

    Federico Longo, chief information officer, Deutsche Bank

  • Have your say
  • Send to a friend
  • Print this
  • Share

reader comments

related articles

Businessman looking out over the CitySkills

IT professionals are happy despite the downturn

Economic uncertainty is doing little to damage the confidence of IT staff, says research 27 May 2008

 

The future does not look bright for IT

Big changes are afoot if the IT industry is to survive and develop in the next few years, but how best to go about it, asks Mark Samuels 13 Mar 2008

Panic must give way to planning

Your business can prosper in a downturn, provided you keep a cool head, says Alastair Dryburgh 19 Jun 2008

European Commission powers up green IT strategy

New action plan will aim to establish common energy-efficiency metrics and industry-wide emission targets 16 Mar 2009

Datacentre managers still show poor energy awareness

Gartner research shows managers are still not making energy efficiency a priority 24 Sep 2009

UK launches new low-carbon aviation R&D project

Technology Strategy Board and Rolls Royce team up to work on new efficient engine designs 30 Jul 2009

related whitepapers

today's top stories

Police hunt for moles with security software

Lancashire Constabulary to monitor data input of 7,000 staff in bid to prevent intelligence leaks 09 Feb 2010

PaperlinX outsources IT and comms to Bull and BT

Paper company spends €22m on five-year deal for desktop management, helpdesk and datacentre services 05 Feb 2010

Social tools take KM to a new level

Technology expert David Tebbutt explains how – and why – organisations should integrate social networking tools into their knowledge management strategy 02 Feb 2010

EDS court defeat puts vendors on their guard

BSkyB’s victory in a long-running court case against EDS has serious implications for the IT industry 02 Feb 2010

Law firm monitors web traffic violations

Bucks declining global security appliance sales with unified threat management (UTM) platform deployment 01 Feb 2010

Advertisement

Security: The New Face of Intrusion Prevention
An outline of traditional IPS functionality, modern developments and how IPS can be deployed easily.

UK businesses’ attitudes to Cloud Computing revealed

Features results from a survey of over 200 Computing readers.

Advertisement

Keep up to date with the latest products, services and technologies from the world's leading IT companies; ITHound.com brings you over 6,000 white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

Latest poll

Internet Explorer 6

Internet Explorer 6

Following recent concerns about the security of Internet Explorer 6 are you planning to phase it out?

View poll results

Latest audio and video articles

Tony McAlisterVideo

Video Q&A: Tony McAlister, CTO, Betfair - Part one

On changing the skills development strategy at the online gambling firm - part one of a two-part video interview 05 Nov 2009

Video

Nokia shows upcoming handset technologies

Mobile phone features of tomorrow take the stage 21 Oct 2009

Latest in-depth articles

Analysis

Police hunt for moles with security software

Lancashire Constabulary to monitor data input of 7,000 staff in bid to prevent intelligence leaks 09 Feb 2010

Businessman with eye patch, dagger and tie round head, sitting at laptopFeatures

Are you sure you're not a pirate?

It is alarmingly easy for an IT leader to unwittingly exceed the scope of a software licence, and the chances of being caught out have never been greater, as technology lawyers Mark Weston and Paul Gershlick explain 09 Feb 2010

Primary Navigation