Indian SMBs Lead Investment In Energy-Efficient IT

According to a global study jointly released by IBM and InfoTech Research Group, even in a very difficult economic environment, Indian small and medium enterprises (SMEs) are eager to actively invest in initiatives that reduce the environmental impact of their information technology.

The study is based on a survey of more than 1,000 information technology executives at companies with between 100 and 1,000 employees across industries and in a dozen countries including India, United States, Canada, France, Germany and the United Kingdom.

The findings show that more than 55 percent of Indian companies are going to, or have already commissioned third-party environmental audits, purchased emission credits, or have made improvements in their supply chain efficiency to reduce energy consumption. 63 percent of Indian IT enterprises have completed a retrofit of existing server rooms to increase energy efficiency, or have a pilot project underway.

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Almost two-thirds of all companies globally are currently, or are planning within the next 12 months, to add virtualisation technology to their servers, consolidate storage systems, or retrofit their server rooms.

“Businesses around the world have discovered that going green isn’t just good for the planet; it’s good for their bottom line,” said Ramesh Narasimhan, director, General Business, IBM India/South Asia. “Green IT strategies are leading to savings in operational expenditure; lower space and power and higher RoI. The findings in this report highlight how mid-size companies are realising significant cost savings when they adopt green IT initiatives.”

The study found companies typically fall into one of four IT personalities; green advocates, smart spenders, green observers and green seekers. Green advocates, or companies that integrate environmental considerations into all areas of their business, make up about 25 percent of the companies surveyed. Smart spenders make up 38 percent of the survey group and are defined as SMBs willing to make upfront investments to achieve a long-term cost reduction. Green observers, who make up 30 percent of the survey group, do not have specific environmental goals and need management support for initiatives to improve energy efficiency. Green seekers, at 7 percent, are interested in adopting energy efficient technology but are unsure of where to start and how to quantify results.

Saving electricity requires the measurement of IT electrical consumption, something many companies cannot do. However, the survey finds that more than 50 percent of companies have implemented some form of energy measurement for their information technology infrastructure, and about one quarter plan to do so in the year ahead.

About 60 percent of the total respondents weigh the importance placed on business benefits against environmental benefits, suggesting that IT initiatives to help improve energy efficiency must yield financial returns in order to get the green light.

Countries with some of the highest fuel prices in the world have not, up to this point, turned to remote conferencing and telecommuting initiatives to reduce both cost and energy consumption. The survey found while 50 to 60 percent of Indian, Brazilian, North American and British businesses are up and running with telecommuting and virtual conferencing capabilities, Germany, France, and, to a lesser extent, the Nordic countries have been slower to adopt these technologies. Initiatives intended to reduce travel are clearly receiving the most attention from geographically ‘big’ countries over the next 12 months. From Brazil to Canada, more than 30 percent of businesses will aggressively pursue remote conferencing and telecommuting strategies.

Virtualisation is also being perceived as a major step to achieve an energy-efficient business operation. The rate of server virtualisation across most regions (with an average implementation rate of 48 percent) is evidence that initiatives with a business case will win first. For new initiatives to gain acceptance from stakeholders, who may be skeptical, a clear case for cost containment, savings or other business benefits must be made first.

Data indicates that IT equipment recycling has shown good progress. Overall, 56 percent of the companies surveyed have either completed or are implementing outdated hardware recycling programs. Approximately 23 percent of IT departments report plans to adopt IT equipment recycling and energy measurement practices within the next 12 months. In about 65 percent of the implementations, the study found organisations’ initial goals for these projects are met or exceeded.