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IBM Charts Green, Energy Efficient Course with Dynamic Infrastructure Initiatives

These days just about every high technology vendor is “keen to be green.” However, few vendors can match IBM for its pioneering efforts and long term commitment to energy efficient solutions that are both good for the planet and good for recession racked enterprises.

This week, IBM took another giant step in its green data efforts. It officially launched its Dynamic Infrastructure for Energy Efficiency initiative, which is a comprehensive, compelling set of new hardware, software and services offerings designed to help customers build, manage and maintain more energy efficient infrastructures.

IBM’s Managing Dynamic Infrastructure for Energy Efficiency initiative serves as a blueprint for vendors and corporate customers to follow and emulate in their respective efforts to reduce power consumption, utility costs and their carbon footprints in the pursuit of greater system, application and network equipment economies of scale.

Declaring that “Environmental sustainability is an imperative for 21st Century business,” Rich Lechner, IBM’s VP of Energy & Environment, outlined IBM’s ambitious plan. Lechner and Chris O’Connor, VP of Tivoli Strategy, Product Management and SWG Green said that Big Blue worked with some 3,200 customers over the past two years to construct and validate metrics on energy usage and costs. Among the key findings from these efforts:

  • IT energy expenses are expected to increase 35% between 2009 and 2013
  • An overwhelming 80% of CEOs expect climate change regulations in five years
  • Buildings account for 40% of worldwide energy consumption

The company’s new products and services are the product of years of primary research and extensive research and development (R&D) in which the company has. spared no effort or expense in its quest to “go green” and assist its customers. It addresses the full spectrum of Green IT issues including: conservation, pollution prevention, consolidation and regulatory compliance initiatives for the physical devices and facilities and using renewable energy sources.

Managing Dynamic Infrastructure for Energy Efficiency

IBM’s Managing Dynamic Infrastructure for Energy Efficiency calls for corporations to build Green Infrastructures, Sustainable Solutions and Intelligent Systems. IBM’s plan is backed by a wide array of product offerings such as the Tivoli Monitoring for Energy Management and enhancements to the existing Tivoli Business Service Manager. IBM is offering customer a free trial of the Tivoli Monitoring for Energy Management.

The Tivoli Energy Management solution is supported by IBM hardware and IBM Global Services. The latter includes chargeback and accounting services and the ability to demonstrate to customers how to optimize assets (plant and facilities) and improve energy usage.

On the hardware front, IBM is embedding new capabilities in its x86 servers through consolidation which can result in an astounding 95% reduction of power compared to servers built three or four years ago.

IBM also has a Green Infrastructure ROI analysis tool. This is an interactive Web-based assessment toll that provides business with benchmarks on green/energy efficiency performance. It also provides the customers with specific recommendations to reduce energy consumption.

IBM also has a full set of services offerings to assist corporations in reviewing their current consumption and infrastructure and constructing customized plans for Green IT. IBM also has agreements in place with a number of technology partners – including Novell and Thunderhead – to deliver solutions that are certified to reduce environmental impact.

Going Green is Good Business

According to Lechner and O’Connor, Green IT initiatives will yield tangible benefits. Actual dollar value cost savings will vary according to the business and its specific cost cutting efforts. IBM customer Care2 for instance, cut energy consumption by 70% and reduced energy usage by 340 megawatt hours with proactive management. Another enterprise customer, Nationwide Insurance anticipates it will save $15 million (US dollars) over the next three years, including an 85% to 90% reduction in server utilization rates via virtualization and an 80% decrease in its environmental costs.

Not surprisingly, Lechner and O’Connor said that IBM practices what it preaches: IBM’s Austin facility achieved a 150% capacity increase while simultaneously cutting energy consumption by 25%. Those figures were good enough for the EPA to rank IBM’s Austin facility number 31 on its list of Greenest hardware vendors.

“Four years ago when we worked with clients [regarding energy efficiency] the discussion was academic,” Lechner said. “Now they want IBM to help them with Proof of Concept (POC) initiatives. The ROI for Green IT is two years or less,” he added.

Analysis

IBM’s Managing Dynamic Infrastructure for Energy Efficiency is the real deal. It is the result of years of dedication and commitment. And it shows. As one of the founding developers of the Electronic Industry Code of Conduct (EICC) in 2004 IBM has always backed up its words with action. The EICC is a code of best practices adopted and implemented by some of the world’s major electronics brands and their suppliers. Its goal is to improve conditions in the electronics supply chain.

It is well known and well documented that demand for Green desktop and server hardware and services will increase significantly over the next one-to-five years. Governments, states, municipalities and utility firms are now offering consumers and businesses a mixture of incentives, backed by mandates to reduce costs, power consumption and produce hardware, whose material components won’t poison the planet when it comes time to discard and/or recycle them.

Green IT initiatives are rising sharply and it’s easy to see why. The energy used to process and route server requests and transactions will exceed 100 Billion kilowatts (kWh) at an annual cost of $7.4 Billion by the year 2011, according to the Environmental Protection Agency (EPA). PCs and servers are currently the biggest hogs consuming 60% of peak power even when idle!!! This is double the energy servers used in 2006!

Corporations have a choice: go green voluntarily or be compelled to do so by a slew of new regulations which are now being written into law. For example, one of the mandates of the Green Building Act of 2006 requires that commercial buildings in Washington, D.C. larger than 50,000 sq. ft. must meet or exceed New Construction standards by 2012. Others are voluntary like the Energy Policy Act of 2005. It allows building owners to realize a tax savings of $1.80 per sq. ft. for new commercial buildings that reduce regulated energy use by 50%.

ITIC’s own survey data indicates that 74% of corporate data centers face limitations and constraints on space, power consumption and the rising costs associated with energy and physical plant leasing/rentals. The obvious solution is to cut energy consumption and utility costs, which in turn, reduce carbon emissions and cut the greenhouse gases.

IBM’s Managing Dynamic Infrastructure for Energy Efficiency initiative is a well-conceived and powerful set of products and services. It solidifies IBM’s reputation and position as an energy efficiency pioneer. Few vendors can match IBM in this area. IBM is well positioned to help corporations achieve their goals of cutting costs, consolidating server hardware and physical plant space and ultimately becoming carbon neutral. Corporations are urged to examine IBM’s products and services and test them for themselves.

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Apple Gets More Entrenched in the Enterprise

Apple Macintosh Enterprise Usage Continues to Grow

Apple Mac and OS X 10.x continue to make inroads in the enterprise.

ITIC’s 2009 Global IT and Technology Trends Survey shows that corporate enterprises continue to embrace the Apple Mac and OS X 10.x server operating system in numbers not seen since the late 1980s. ITIC polled IT managers and C-level executives at 700 corporations worldwide. Among the survey highlights:

  • Over two-thirds of the 700 survey respondents – 68% — indicated they are likely to allow their end users to deploy Macs as their corporate enterprise desktops in the next 12 months.
  • Almost one-quarter or 23% have a significant number of Macintoshes (> 50) present in their organizations. Apple Macs have long been a favorite of company executives, but the survey responses clearly indicate that Mac usage has filtered down to rank and file knowledge workers across the enterprise.
  • Half of all the survey respondents – 50% — said they plan to increase integration with existing Apple consumer products such as the iPhone to allow users to access corporate Email and other applications. This augurs well for the iPhone to establish itself as a viable alternative to Research In Motion’s (RIM) as a mobile device that allows users to access Email and other collaboration applications.

In summary, the ITIC/Sunbelt survey responses show that businesses will find themselves challenged to do more with fewer resources. The respondents also exhibited their practicality and resourcefulness in extending the lifespan of still-useful technologies like Windows XP. However those who have the need and the budget, will get an able assist from emerging technologies like virtualization – and for those that correctly configure and deploy them – Vista and the Mac and OS X 10.x

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Apple Shines

Apple rang in 2009 by celebrating a trio of milestones that were impressive by any standards including those of a company whose 32-year span has been filled with a cornucopia of noteworthy events. In quick succession, Apple posted the best financial results in its history: during the just ended 2009 first fiscal quarter it achieved record revenues of nearly $10.2 billion on record net quarterly profits of $1.61 billion and it sold an astounding 22.7 million iPods, another record. The icing on the cake: Apple’s flagship Mac computer celebrated its 25th birthday amidst the news that the Cupertino, California firm’s latest Mac Book and Mac Book Pro notebooks contributed to the overall financial bonanza with sales of 2.5 million units; a 34% gain in year-over-year unit shipments.

These feats would be extraordinary at any time but they offered even more cause for celebration due to their arrival during a week in which the news from almost all of Apple’s high-tech vendor counterparts ranged from disappointing to dismal to downright dire. Intel said it would shed up to 6,000 workers and close five manufacturing plants; Microsoft announced it will lay off 5,000 workers (the first such major action in its history) amidst declining demand for Windows PC solutions, and even the goliath Google saw a sharp decline in its 2009 first fiscal quarter profits.

With such a bountiful harvest, it was more than a little perplexing to read the headline in the January 22 issue of Silicon Valley.com column proclaiming: “Mac’s influence could wane.” Granted, the headline was a bit misleading. The article itself stated that things look good for Apple and its Macs in the near term, but what about the next 25 years? Good question.

Long term forecasts of even five years are more art or guesswork than science. But decades long prognostications are rarities unless you’re talking about Nostradamus or the Oracle of Delphi. So we’re left to forecast with the tools at our disposal – in this case, the facts. So here for your consideration is our Top 10 List concerning Apple’s health and well-being. It includes some little known facts of both a positive and even potentially negative nature.

10. Big Mac sales shrink. Apple Mac desktop sales dipped slightly even as sales of its notebooks and the lightweight Apple Mac Book Air soared. This is hardly surprising. Both the American and global consumers and workforces are becoming increasingly mobile, transitioning into an era of ever-more powerful notebooks, Netbooks (or minis) and PDAs. Critics argue that the commoditization of PC hardware will make it difficult for Apple or any hardware vendor to distinguish itself. As a result, Apple desktop sales may continue to contract along with those of PCs although they won’t become obsolete for many years. Meanwhile, Apple has a wide array of Mac Book, Mac Book Pro and the Mac Book Air products to take up the slack. The company also wisely cut hardware and OS X 10.x operating system prices to be more competitive with PCs.

9. iPod and iPhone. Apple sold a record 22.7 million iPods during the quarter, and the device has approximately 70% market share in the U.S. Worldwide market share percentages vary by country from 70% in Western Europe and Australia to well over 60% in Japan and over 50% in Canada. At the same time, iPhone sales in Q1 were 4.36 units million, representing 88% unit growth over the year-ago quarter. At some point, iPod and iPhone sales may reach saturation but that won’t happen anytime soon and when it does, Apple will most likely have another device in the offing.

8. Up, up and away. Data is no longer tied to the PC or desktop, it is moving to the cloud. Apple is right there in the cloud. Cloud computing is the new buzz word for delivering applications as services via the Internet. The first fruits of Apple’s cloud computing initiative involves the integration of Google’s cloud computing offering, the Google App Engine with Apple’s iPhone mobile computing platform. ITIC anticipates Apple will expand its reach into the cloud, again based on customer demand. Nearly half – 49% of the ITIC/Sunbelt Software survey respondents said they plan to increase integration between existing Apple consumer products like the iPhone to allow corporate users to access corporate Email and other applications over the next 12 months.

7. Marketing. No one does it better. From the moment that Steve Jobs stepped onstage 25 years ago and unveiled his 20lb. baby, to the creative licensing of the Rolling Stones tune “Like a Rainbow”, to partnering with the Irish rock group U2 to help promote iPod usage, Apple’s marketing has always been stellar. Apple uses every available channel – from the airwaves to the street – to promote its brand. There are now 251 Apple retail stores open in 10 countries, with total quarterly traffic of 46.7 million visitors.

6. New gadgets. Users and industry watchers have grown accustomed to Apple debuting revolutionary new products at MacWorld and they disappointed when it doesn’t happen. It is unrealistic to expect that any company, even one as inventive as Apple, can deliver a iPod or iPhone every year. Meanwhile, users will have to “settle” for evolutionary innovations like new laptop batteries that will run for eight hours without re-charging and Time Capsule, an all-in-one 802.11n wireless backup router that includes up to 1 terabyte of disk storage.

5. Leadership. It’s impossible to overstate or understate what company founder Steve Jobs has meant to Apple. His 1996 return to Apple sparked one of the greatest corporate revivals since Lazarus. An iconic figure in Silicon Valley for over 30 years, Jobs’ future is now clouded by health concerns, and investors and industry watchers are rightly nervous. Only time will tell when or if Jobs will return. If he does not, it will be a devastating loss on many levels but it will not cripple the company’s ability to thrive and survive. Still, Apple must allay customer, investor and government concerns by being truthful and forthcoming regarding Jobs and the company’s future.

4. What’s in Apple’s Wallet? Cash — $28.1 billion to be exact and $0 debt. That’s more than Google ($15.85B); Microsoft ($20.3B); IBM ($12.9B); Intel ($11.84B) or Sony ($6.05B). Apple also has double digit profit margins of 14.70% and operating margins of nearly 19%; return on assets is 10.77% while return on shareholders’ equity is a robust 24.47%. Few if any corporations can boast such a healthy balance sheet, which leaves Apple free to invest heavily in R&D, marketing initiatives and other efforts to keep ahead of competitors.

3. Apple is hot – and cool. Consumers have always loved Apple and there’s nothing to indicate that will change. Consumer enthusiasm for iPods and iPhones has fueled the resurgence of Macs and OS X 10.x in enterprises. Everyone it seems has or wishes they had an iPod or an iPhone. Beyond that the latest joint ITIC/Sunbelt Software data indicates that Apple is increasing its presence in many markets thanks to the performance and reliability of the core products. Eight out of 10 businesses – 82% of the survey respondents – rated the reliability of the Mac and OS X 10.x as “excellent” or “very good,” while almost 70% of those polled gave the same high marks to the security of the Apple platform. Tellingly, 68% of the survey respondents said their firms are likely to allow more users to deploy Macs as their enterprise desktops in the next six-to-12 months.

2. Enterprising. Over the past three years Apple has made a comeback in the enterprise. The latest joint ITIC/Sunbelt Software survey of 700 companies worldwide indicates that nearly 80% of businesses have Macs in their environment and 25% have significant (>30) numbers of Macs. But while enterprise users love Apple, IT managers remain divided. The biggest drawback for the Mac is the dearth of enterprise-class third party management and performance enhancement tools but technical service and support is also an issue. Apple will have to address these points if the company expects or plans to challenge Microsoft’s dominance on business desktops. So far, Apple has been silent about its enterprise strategy but a new consortium of five third party vendors calling itself the Enterprise Desktop Alliance (EDA) is determined to promote the management, integration and interoperability capabilities of the Mac in corporate environments.

1. Mobile and agile, not fragile. The combination and plethora of Apple consumer and corporate devices makes for a powerful product portfolio with widespread appeal. Unlike many of its competitors Apple is not dependent on a single product or market segment. Hence, when sales decline in one sector, the slippage is offset by another product as we’ve seen with Mac notebooks picking up the slack for Mac desktops. This enables Apple to adjust both its technology plans and market focus accordingly, strengthening and insulating the company from cyclical downturns.

One of the hallmarks of Apple’s existence has been the ability to re-invent itself – not only changing with the times – but keeping its fingers on the pulse of an often fickle public and anticipating what its users and the industry wants. Apple is well positioned for both the near and intermediate term. It will have to stay focused, keep its edge and clearly communicate its strategy in order to maintain the same level of success it has achieved in the last 32 years.

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