Search Results for: demand response

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Google and GE joining forces on clean energy

In the above video Eric Schmidt, Chairman and CEO, Google interviews Jeffrey Immelt, Chairman and CEO, GE.

The reason Google and GE were talking? Google and GE jointly announced the other day that they are coming together “to help develop tomorrow’s power generation, transmission and distribution — known as the “smart grid” — and its interface with next generation electric transportation”.

From the release:

The existing U.S. infrastructure has not kept pace with the digital economy and the hundreds of technology opportunities that are ready for market. In fact, the way we generate and distribute electricity today is essentially the same as when Thomas Edison built the first power plant well over one hundred years ago. Americans should have the choice to drive more fuel efficient cars – or even electric cars – and manage their home energy use to reduce costs, and buy power from cleaner sources, or even generate their own power for sale to the grid.

We all receive an electricity bill once a month that encourages little except prompt payment. What if, instead, we had access to real-time information about home energy use? What if our flat screen TVs, electronic equipment, lights and appliances were programmed to automatically adjust to save money and cut energy use? What if we could push a button and switch the source of our homes’ electricity from fossil fuels to renewable energy? What if the car sitting in our garage ran on electricity – the equivalent of $1 per gallon gasoline – and was programmed to charge at night when electricity is cheapest?

This is spectacular news! GE are the largest player in the power industry in the US. Their product line covers every aspect of power generation, transmission, distribution and consumption. And GE have an enviable record in renewables. They are the largest manufacturer of wind turbines globally having purchased Enron’s wind business out of bankruptcy for $300m and turned that into an asset generating between $7-$8bn in 2008!

Google get Demand Response. Coming from an Internet background as they do, they know all about the read/write web, p2p and publish and subscribe mechanisms – these are going to be the cornerstone of Electricity 2.0 as espoused by Eric Schmidt and Google in their release, and by me as I write about them regularly on this blog!

In fact, I am giving a talk at the Web 2.0 Expo in Berlin on Oct 23rd entitled “Electricity 2.0 – Using The Lessons Of the Web To Improve Our Energy Networks” – this builds on the Keynote I gave there last year on using demand response to reduce our carbon footprint.

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Why don’t we already have a real time market for electricity?

Supply and Demand
Photo Credit whatnot

If Demand Response is such a good idea and will help get more renewables onto the grid, why isn’t it being embraced by the grid management companies?

Most grid management companies have been in business for decades managing a grid in which the supply is manageable and the demand is variable but reasonably predictable – typically daily demand is “this day last year +2.5%”!

Now grid management companies are faced with a situation where an increasing percentage of their supply is coming from variable sources (i.e. wind) – if the wind blows more than anticipated, too much electricity is generated and if it blows less than anticipated, the converse is true. This totally messes up their planning and consequently grid management companies hate wind, and think of it as unpredictable, negative demand!

Instead of having such a negative attitude to renewables and shutting them down in favour of fossil fuels they should be asking how can we facilitate the greater penetration of clean renewable energy sources onto the grid.

In the coming years, the demand for electricity will increase significantly as transportation goes more electric (electric and plug-in electric cars, bikes, trucks, etc.) and as heating moves more to electricity. This will add demand to the grid system but this increased demand is eminently movable – for the most part you don’t care if your car re-charges at 7pm or 4am as long as it is re-charged when you want to leave for work at 8am. Similarly with heating, if you use storage heaters (and they will become more common) you don’t care when they suck in the heat as long as they heat the house the following day.

If you can move the demand to a time when traditionally the requirement for electricity was low, you can deliver it over the same infrastructure, thereby selling significantly more electricity without having to massively upgrade the network.

The upshot of this is that an increasing movable demand (the ability to time shift consumption) should be a strong business case for a real-time electricity market. Let demand be guided by supply (as indicated by price). With a real time market for electricity you need never shut down wind farms in favour of fossil fuels, you sell more electricity and you enable a greater penetration of renewables onto the grid. Win, win, win.

Why hasn’t this happened already? Ask your local grid management company.

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Any questions for Trilliant CEO Bill Vogel?

Question
Photo Credit e-magic

Trilliant, are a Smart Network infrastructure provider who

provides intelligent network solutions and software to utilities for advanced metering, demand response, and smart grid management

Last week they announced that they had

closed a $40 million equity investment from an affiliate of MissionPoint Capital Partners and zouk ventures

Next Tuesday, Sept 2nd, I will be interviewing Bill Vogel, Trilliant’s President, Chief Executive Officer and Founder, for a podcast to be published here later in the week.

In the interview, amongst other things, we will be discussing what smart networks and smart grids are, and why they are such a good thing for the consumer as well as the utilities. We will be discussing the $40 million investment and where that money will be deployed and we will also talk about the Hydro One Smart Grid project (28kb pdf), a project to deploy 1.4m smart meters throughout Ontario.

If you have any questions you’d like me to ask Bill during the interview, please feel free to leave them here in the comments of this post (or email them to [email protected]) and I’ll ask them for you during the podcast.

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IBM’s Vik Chandra on how software can help reduce your carbon footprint

IBM Green Data Center in Second Life
The IBM Green Data Center in Second Life

[audio:http://media.libsyn.com/media/redmonk/IBM-VikChandraPodcast.mp3]

Episode 2 of the GreenMonk Podcasts – 27 mins 27 secs

My guest on this podcast is IBM’s Vik Chandra. According to IBM Vik

is currently responsible for Market Management and Strategy for IBM software offerings that enable organizations to reduce their energy consumption and environmental impact. IBM’s software group offers middleware from its Tivoli, Rational, WebSphere, Lotus and Information Management brands.

I was interested to know how Vik felt software could help companies reduce their carbon footprint so I invited him to come on the show to discuss this and also to answer questions I solicited from readers of this site.

Here are the questions I asked Vik and the approx. times I asked them:

It is easy to see how more efficient hardware can help drop a company’s energy use but how is software helping companies reduce their carbon footprint? – 00:20

Demand response – the ability to have devices adjust their settings dynamically in response to pricing signals from utilities etc is recently gaining a lot of attention. Is this something IBM are looking into? 03:23

Questions from readers:

Chris Dalby
Are there any plans to expand the current cost craze that has hit Hursley? With rising energy and utility costs in general, are there plans to help companies intelligently manage and automate their energy infrastructure using mqtt? – 05:57


Alan in Belfast

As CPU/core speeds increase, software has become more and more processor hungry, driving up heat, fan, power etc. Energy efficient machines – even Eee PC 1000s! – start to alter the processor speed to keep power demands down. Are IBM serious about de-bloating their software to make it more light-weight? And do they have any feel for whether that could make a 1% difference or a 20% difference to desktop/laptop/server power usage? – 08:14

Is it more efficient to build features into hardware or software? A lot of the enterprise monitoring software that gets installed to instrument PCs/servers runs continuously. Better to make lighter hardware modules to do the same? Is there a day when a Linux-on-a-chip (etc) will be embedded in PCs/servers as a more energy-efficient method of performing these tasks? (Bring back the PIC chip!) – 10:28

Jim Spath
We’re moving toward more virtualization, currently running IBM AIX on Power5 LPARs, starting to run virtual CPUs, memory, storage and I/O. What are the limiting factors for software licensing in such a landscape? It seems we save money on hardware but pay more for software that could run in different frames.
I think Linux is a partial answer, but there are corporate concerns with having multiple OS images, not to mention uneasiness about GNU and BSD license models. – 14:23

Jim Hughes
I see plenty of power management software going into desktop and laptop PCs (clock slowing, fans that run only when necessary etc.), but precious little into servers.

As many enterprises appear to be shuffling ever more equipment into noisy, over heating server rooms, surely power (and noise) management should be a big issue here.

Are IBM ignoring servers because they’re hidden away from all but the long suffering sys admins? – 17:01

Ed Gemmell
Of the $1 billion IBM said they would invest in Green IT. How much has already been invested (can we see it in the financials?) and how much has been in Software. What do you have to show for the $1billion so far? – 21:31

Uldis Boj?rs
It would be interesting to learn more about what is IBM’s experience and lessons learned in enterprise use of new social media and collaboration tools such as microblogging and virtual 3D worlds. – 25:58

Download the entire interview here
(25.1mb mp3)

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ICT could deliver approximately 7.8 GtCO2e of emissions savings in 2020

Measuring time
Photo Credit aussiegall

James has, in previous posts referred to the fact that IT is responsible for 2% of the world’s CO2 emissions but that it can have a disproportionate influence on the other 98%. This is something we believe fundamentally in GreenMonk so it is great to see others vindicating our position.

The Climate Group and the Global e-Sustainability Initiative (GeSI) recently published a report, independently audited by McKinsey and Company called Smart 2020. The report is a fascinating read and comes to the conclusion that ICT could:

deliver approximately 7.8 GtCO2e of emissions savings in 2020. This represents 15% of emissions in 2020 based on a BAU [Business As Usual] estimation. It represents a significant proportion of the reductions below 1990 levels that scientists and economists recommend by 2020 to avoid dangerous climate change. In economic terms, the ICT-enabled energy efficiency translates into approximately €600 billion ($946.5 billion) of cost savings. It is an opportunity that cannot be overlooked.

Apart from emissions associated with deforestation, the largest contributors to climate change are transportation and power generation, so how could IT help these functions?

According to the report the use of

  1. Smart motor systems – optimised motors and industrial automation would reduce 0.97 GtCO2e [0.97 giga tons CO2 emissions] in 2020, worth €68 billion ($107.2 billion)
  2. Smart logistics – global savings from smart logistics in 2020 would reach 1.52 GtCO2e, with energy savings worth €280 billion ($441.7 billion)
  3. Smart buildings – smart buildings technologies would enable 1.68 GtCO2e of emissions savings, worth €216 billion ($340.8 billion) and
  4. Smart grids – smart grid technologies were the largest opportunity found in the study and could globally reduce 2.03 GtCO2e , worth €79 billion ($124.6 billion)

Even though we have been heavily promoting the use of smart grids and demand response on this blog I was impressed that they could reduce CO2 emissions by 2 giga tons by 2020. This is one of the reasons why I was super-excited today when SAP’s Mike Prosceno invited me to attend their SAP for Utilities conference which is going to be in San Antonio Texas in October. This is a conference about the future of utilities and there will be a big focus on smart grids, smart meters and AMI (Advanced Metering Infrastructure).

How will IT help reduce emissions? It comes back to that old chestnut – if you can’t measure it, you can’t manage it.

Or as Steve Howard, CEO, The Climate Group said in his opening address in the report:

When we started the analysis, we expected to find that ICT could make our lives ‘greener’ by making them more virtual – online shopping, teleworking and remote communication all altering our behaviour. Although this is one important aspect of the ICT solution, the first and most significant role for ICT is enabling efficiency.

Consumers and businesses can’t manage what they can’t measure. ICT provides the solutions that enable us to ‘see’ our energy and emissions in real time and could provide the means for optimising systems and processes to make them more efficient. Efficiency may not sound as inspirational as a space race but, in the short term, achieving efficiency savings equal to 15% of global emissions is a radical proposition.

Via Doug Neal (aka gblnetwkr)

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Can we hack open source cloud platforms to help reduce emissions – my Cloudstack keynote talk

This is a video of me giving the opening keynote at the Cloudstack Collaboration conference in Las Vegas last December. The title of my talk was Can we hack open source cloud platforms to help reduce emissions and the slides are available on SlideShare here if you want to download them, or follow along.

Be warned that I do drop the occasional f-bomb in the video, so you might want to listen to this with headphones on if there are people nearby with sensitive ears 😉

And I have a transcription of the talk below:

Good morning everyone! I’m absolutely astounded of the turn out at this time on a Saturday morning. I said to Joe yesterday evening, I think it was, that I reckoned it would be just me and the AV guy here this morning but now you’ve turned up. That’s a fantastic, phenomenal. Thank you so much. I hope we make it worth your while. My talk, Joe mentioned I’m from RedMonk. RedMonk is an analyst firm. I work on the green side of a house, so I’m all about energy and sustainability. I’m talking about using open source cloud platforms to measure and report energy and emissions from cloud computing.

A couple of quick words about myself first. As I said, I lead analyst energy and sustainability with RedMonk. You can see there, my blog is on greenmonk.net. My Twitter account is there. My email address is there. My phone number is there. Please don’t call me now. I’m using the phone as my slide forwarder. SlideShare, I’ll have this talk up on SlideShare shortly.

Also, a couple of companies I’ve worked with. I worked to the company called “Zenith Solutions” back in the mid-’90s. It’s a company that I set up in Ireland. As we called it at the time, it was a web applications company. Web applications at that time morphed into SaaS, “Software as a Service.” Back in the mid to late 90s, I was setting up these Software as a Service Company, so I knew a little bit about cloud. Then Chip Electronics was an ERP company, but it was a Software as a Service delivered ERP. That was around 2002. CIX, the other company that’s there.

CIX is a data center company that I founded in 2006 in Ireland. I kind of know a little bit about cloud both from the software and from the hardware side. I’ve setup a data center and I’ve also setup software companies dealing with cloud stuff. Like I say, a little bit of the background in it. I know what I’m talking about, not that much, but I’ll bluff it.

This is a report. It’s a graph from a report that came out just a couple of weeks ago. It’s from WSP Environmental and the NRDC. Basically, what they’re saying in this report, it’s a long report, the link is at the bottom there. As I say, this talk will be on SlideShare, so you can link on the link in SlideShare and get straight to the report. What the report is saying basically is that cloud computing is green. There have been a couple of reports like that which have said that. Most of them have been tainted before now. There was one that Microsoft helped put out, obviously Microsoft have got a foot in the game so you kind of wonder about that one. There was another one that was put out by the Carbon Disclosure Project, but it was paid for by AT&T. That was highly suspect. This one’s actually quite good. They’ve done quite a bit of work on it. You actually have to take it seriously unlike the previous two and it does seem to suggest that cloud computing is green, and that’s good.

Previous ones, as I say were suspect. The issue with this that I have and it’s a small issue, but this issue or this report is a really good report but it’s speculative. It says cloud computing should be green. Probably, is green. Maybe green, but they’re not working on any hard data and that’s where we’ve got a serious problem with cloud computing.

Taking a step sideways for a second, this is a guy called Garret Fitzgerald. Garret Fitzgerald was a politician in Ireland in the ’80s and ’90s. He died last year. A very unusual politician because he was one of the very few politicians who actually have integrity, very well-know for his integrity. He was also not just known for his integrity, but he was an academic. He came from an academic background. He worked in Trinity College Dublin as a statistician, so he was a data guy.

Now, in the mid-’40s, the Aeroflot, Russian Airline Company, it was at ’47 I think or ’49, for the first time, published their flight schedule. They’d never done this before. They published their entire flight schedule, their global flight schedule. Garret Fitzgerald looked at this, analyzed it and figured out he could know by going through this in detail, he could figure out the exact size of the Aeroflot fleet down to the number and types of planes they had in their fleet, and this was a state secret.

This was nothing that had ever been published before, but by analyzing their schedules, he worked it out and he published it, and as a result, the KGB had a file on him because they thought he was a spy.

Two things about this slide, first is you do a creative common search on Flickr for KGB, and this is one of the images you’ll find. It’s got a KGB logo and his got a cat, so you got two memes right there. A, the internet is fucking awesome and B, well the main thing to take away from this is that there is no such thing as security by obscurity. Hiding your data will not work. Somebody will figure the damn thing out. That’s where we’ve got a big issue with cloud computing because there is absolutely no transparency in cloud computing.

This is a blog post that I’ve put up. If you follow greenmonk, which is where I blog at greenmonk.net, you’ll find there’s a ton of blog posts on this very topic, the lack of transparency in cloud computing. I have done blog posts about it. I’ve given webinars about it. I’ve hassled people about in the space. The SalesForces, the Rackspaces, I’ve hassled them all.

Recently, the New York Times picked up the story. I’m not going to say it has anything to do with me, they actually run a really good story. Again, the link is at the bottom there. One of the things that they have mentioned in that story — please do go and click on that link and read that article. It’s a really good article.

One of the things they have mentioned in that article is a McKinsey study. In that McKinsey study, they say that globally for data centers, somewhere between six percent and 12%, depending on the data center, somewhere between six percent and 12% of the power going into the servers in the data centers is used for computing. The other 88% is used for elasticity. It’s used to keep them going in case there’s a burst of activity, so 88%, if we take a conservative look, 88% of the power going into those servers is the E in Elastic Cloud, horrific waste.

Do you think that people’s often mistake in this area, is people often equate or conflate energy with emissions, and that’s a mistake. They are not the same thing, not at all. The reason they are not is because if you take the example of — for example, the Facebook Data Center in Prineville, Oregon, a fabulous data center. They’ve opened sourced it, the whole open compute project. They’ve opened sourced the entire building on this data center.

The data center, if you know anything about data center statistics, there’s a metric for data centers called the PUE. The PUE is the Power Usage Efficiency. The closer you are to one, the more efficient you are. Facebook’s data center comes in around 1.07 or 1.08, depending on time of the year on usage and stuff like that, but it’s in and around 1.08. It’s almost unheard of efficiency, 1.5 is kind of average, 2.0 is older data centers, and 3.0 is dirty. This is 1.07 or 1.08.

Unfortunately, although it’s extremely efficient — this is Facebook’s numbers here, 1.08 plus their computing power has declined by 38%, but the problem with that is, this data center is powered by company called PacifiCorp. PacifiCorp are the local utility in Oregon, in Prineville where this is based.

PacifiCorp mines 9.6 million tons of coal every year. It doesn’t matter how efficient your data center is. If you’re mining 9.6 million tons of coal to run your Facebook data center, it’s not green. I don’t care how efficient it is. It’s not a green.

It’s not just Facebook, it’s not just Prineville, Dublin, in Ireland, I’m Irish — guilty. Dublin has become a center for cloud computing as well. All of the big companies are there. Microsoft is there, they got their big Live servers there, Google are there, Amazon are there, they’ve all got data centers there. Ireland, unfortunately, gets 84% of its electricity from fossil fuels. Again that’s not very green. It’s not just Ireland, the U.K. is another big center for cloud computing in London, and again, over 90% of the electricity in the U.K. comes from fossil fuels. This is really, really bad stuff.

Now, if you look at this chart, this is why I say that the PUE which is in the middle column here, isn’t a whole lot important because as I said, if you look at the bottom row there, it’s got a PUE of three I said that was really dirty. Top row, PUE of 1.5 is at the average, middle row PUE of 1.2 kind of in the middle, but if you look at the power source coming into these putitive data centers, so your typical one, the top line, typical one has a supply carbon intensity of half a kilo per kilowatt hour, that’s pretty standard. If that has a data center PUE of 1.5, then you’re getting simple math, 0.75 a kilo per kilowatt hour. If you have a good PUE of 1.2, but with coal fired power coming at 0.8 of a kilo per kilowatt hour, you’re now looking at IT carbon intensity of 0.96.

Look at the bottom line, a PUE of three, one of the dirtiest data centers you can get, but it’s powered almost all by renewables, it’s not all because it’s got a 0.2 kilograms and a PUE of three, it still comes in at an IT carbon intensity of 0.6, which is far better than the 1.2 PUE or the 1.5 on typical. The take home message from this slide is that it’s the source of the electricity is what determines the carbon footprint of your cloud, not the efficiency of your data center.

Now, if we look at some of the cloud providers that are out there today and if I left anyone out, apologies, I just stuck these logos up based on the availability of the logos. It’s not an any kind of research or anything but that.

If we look at the cloud providers that are out there, these ones are semi-clean. If we look, for instance, at Rackspace, they have a data center in the U.K. which they claim as 100% powered by renewables. Now, they haven’t given us a whole load of data, but let’s just take the word on it. If you go with Rackspace and you go with their U.K. data center it’s supposedly 100% green, we’ll see. Google, Google have done a really good job on investing in renewables. They spent almost a billion dollars on buying into Windfarms, power purchase agreements with big Windfarms the whole thing. They’ve gone out on a serious limb, in terms of renewables. I’m pretty positive about them. They’re still doing a lot of the old buying carbon credits and stuff like that, but they got old data centers that they need to top up with carbon credits.

Green Cloud is an interesting one. Green Cloud are company that bill themselves as an AWS replacements, dropping AWS replacement and why they are cool is because — pun intended.

They’re cool because they’re based in Iceland. The electricity grid on Iceland is 100% renewable, its 30% geothermal, 70% hydro. The entire grid is a 100% renewable energy and it’s baseload energy and what’s even more interesting about it, as a grid is, there are 300,000 people living in Iceland, that’s it — 320,000. They’ve realized that they got this energy infrastructure and way more energy than they can every use, so they decided to invite people who need lots of energy. I’m not talking about data centers. I’m talking about Aluminium Smelting Plants.

So, they got Aluminium Smelting Plants in Iceland. These guys take up 500 megawatts at a time. A big data center is 50 megawatts. They’re 10 times the biggest data center you’ve ever come across, in terms of the power utilization. They are on all day, everyday, 24/7, 365, it’s a flat line. Any electricity grid you look at, if you look at the demand curve, it goes like that everyday. Peaks in the morning, when people get up, peaks in the late afternoon when people come home from work. Iceland, the flat line all the way. It is the only country whose electricity grid is just flat all the time. It’s always on. It’s always flat. There is no movement in it or whatsoever. It is the most reliable electricity grid in the world. It’s also one of the cheapest. It’s also 100% green.

If you are looking to site a data center, I recommend Iceland. Greenqloud are based there, and as I say, their Cloud is obviously 100% green. We’ll come back to them.

Amazon put out this report earlier this year where they said that, “Both their Oregon and their GovCloud were a 100% carbon free”. That sounds nice. Unfortunately, when you actually ask them about it, so this is Bruce Durling, a guy I know in the U.K. He asked Jeff — it’s a story for this 100% green claim that it’s just going out. Jeff says, “You know, we don’t share any details about it, but I’m happy to hear you like it.” Bruce comes back and says, “How can we verify if this is true, there are lots of different ways to claim zero carbon.” And then you’ll just hear cricket chirps, nothing, no data, and no response. Bruce isn’t the only guy, several people took Jeff up on this asked him, “What’s the story with your claim for 100% green in these two clouds? “Nothing, nothing.” And it’s appalling that they are not talking because this is the kind of stuff we need to know. There is no data coming at of a lot of the cloud manufacturer or cloud providers.

Looking again at the cloud providers I’ve mentioned, if we look at some of the ones who are providing some data. If we look, for example, at SAP, SAP has got a really good sustainability report that they release every year. In fact they release quarterly even better. Unfortunately, the only data, they give us about their Cloud, is that eight percent of their carbon emissions are from their data centers. That’s as granular as it gets. We know no more about their carbon emissions, about their Cloud than that.

If we look at Salesforce, Salesforce go a little further. Salesforce have got this carbon calculator under site which is interesting. If you choose as I did in this screen shot, you can see I chose — I was based in Europe which I am. I decided to say I was in a company of 10,000 plus, and I decided to say, “Look, I’m going from on-premise to Salesforce. So, they tell me, “Fantastic! You’re going from on-premise, 10,000 plus based from Europe you’re going to save 86% and 178 tons of carbon by moving to Salesforce, but of course that’s complete horse shit because Europe is not homogenous.

If I’m based in France, 80% of the energy in France is nuclear. If I’m based in Spain, which I am, 40% of the energy in the Spanish grid comes from renewables. There is no way that if I move my on-premise from France or Spain to Salesforce that I’m saving 178 tons of coal per annum. In fact, if I move to Salesforce, my carbon emissions are going to go up not down because Salesforce’s data centers are in the U.S. which is 45% coal or they’re in Singapore. Singapore is — if memory serves 93% fossil fuel so there is no way moving to Salesforce from a lot of the European countries is a step on the right direction in terms of green.

The other thing that they have — you can click on the link at the bottom of this as well on the Salesforce site. This is where they have your daily carbon savings. There are two problems with this, the first is — this screen shot was a couple of days ago and you could see they’re talking about the 13th of September is the most recent date, so it’s two months or more out-of-date. The second is they’re talking about carbon savings, which is bullshit made-up number. What they should be talking about is actual carbon emissions because they can just make up the carbon savings because it’s basing where you’re from. Like I say if I’m in Spain and my carbon savings are at a zero going to Salesforce. They should be talking about emissions not carbon savings of completely the wrong metric.

I talked about Greenqloud. Greenqloud, have this on their site which is nice. You log into Greenqloud — over the righthand side is part of your dashboard, you get your carbon figures. They are as well, and this is a conversation I’m having with them at the moment, they are also talking about the CO2 savings, they’re not talking about actual emissions. There are emissions obviously, if you’re working with Greenqloud, their CO2 footprint is negligible because it’s Icelandic, but there is that carbon expended between your laptop or your desktop and going to them. There is carbon put out there but it’s negligible compared to mostly of the other providers. The difficulty with this, as they say, is they’re talking about CO2 savings not CO2 emissions. I’m hoping to get them to change that.

Why don’t the Cloud providers provide this data? There are number of reasons. I’m speculating here. I don’t know. I’ve asked them, they’ve all said different reasons. One of them I’m going to think is competitive intelligence. They don’t want people to know what their infrastructure is. They don’t want people to do the Garret Fitzgerald and reverse engineer, to find out what it is they’re actually using to power their facilities. Another is maybe they don’t actually want people to know how much CO2 they’re pushing out. It’s not a happy story.

The other is, in fairness, there’s a lack of standards out there about cloud companies reporting emissions because how do you report emissions around cloud computing? Do you do it at CO2 per flop? What’s the metric? We don’t know, no one is doing it yet so we don’t know.

Peter Drucker, the management guru, is famous for saying, “If you can’t measure it, you can’t manage it.” That holds true. That does hold true for everything, and particularly in this space.

I’m going to go through a quick recap of 2012 and this is not going to be pleasant. This is an image taken from the U.S. Drought Monitor in September but it’s even more so now. So far, U.S. agriculture has loss $12 billion just in Q3 because of drought. It’s not just drought, there’s been massive wildfires globally, not just in the U.S. There’s been massive floodings everywhere, not just the floodings, but also a new report came out in the last week, and again the link is at the bottom, which says that, “Sea level rise globally is actually 60% higher than had been previously calculated.” They had thought sea levels were rising two millimeters per annum. It turns out sea levels are actually rising 3.2 millimeters per annum.

We have had more than 2000 heat records in June alone of this year in the U.S. alone, the sea ice — I got a chart here, you can look it up afterwards. I’ve got another chart here you can look it up afterwards, and I got an image here. It’s hard to see, but that’s the polar ice cap in September 13th when it was at its minimum.

The orange line outside that is the 30-year average at that time for the sea ice extent. It’s almost 50% less than what it should have been at that time. It’s scary. It’s scary stuff because when we lose the arctic and we’ve lost 50% of it this year, when we lose the arctic, you got a feedback mechanism because when you don’t have the ice to reflect the heat, you’ll got the water taking in the heat, and it gets hotter and it’s a feedback mechanism so the ice underneath melts as well, so you no longer have multi-year ice.

You got methane emissions, that’s literally methane coming from underneath the ice from organisms that had been frozen, but because everything heated up a little bit. They started producing methane. Now, another report out in the last week in the UNDP says, “The thawing of the permafrost is going to cause us enormous problems and it hasn’t been taken into account previously in any of the climate models.” None of the IPCC reports, up until now, have taken permafrost thawing into account because they think it was going to be significant. Suddenly, they’re realizing that the thawing of the permafrost is decades ahead of where they thought it would be. This is serious stuff because this could be 40% of the global carbon emissions soon, not good. It’s a big feedback mechanism again.

So okay, the Cloud. The hell is that going to do with cloud? I get it. Cloud isn’t responsible for all these emissions. I know that, but it’s responsible for some of them, at least two percent of the global carbon emission is coming from IT and that’s a 2006 Gartner figure(ph). So, it’s likely, significantly higher at this point.

What’s that going to do with open source? Why are we here? Well, I got to think that we’ve got this open source cloud platforms out there. There are a significant number of developers in the room. I think it’s entirely possible that people in this room could start writing patches for the open source cloud platforms that are there, so that the Cloud providers no longer have an excuse to say, “Oh, we can’t do it because it’s not in the software.”

If you guys start writing the software for them, start doing the energy emissions, reporting, and measurement software writing those patches for the open source global platforms. Then suddenly, it gets in to the core. It starts being deployed back out to the companies that are using these platforms.

This is the company called AMEE. Interestingly they’re a U.K. start-up, not really a start-up, they’re around four years now, but they named the company AMEE as the “Avoiding Mass Extinction Engine.” They don’t boast about that, but that’s where they got the name. They are an open source platform for carbon calculation. They’ve got open APIs. If you guys want to do this stuff, work with the AMEE open APIs because they’ve got all the data.

Then, as I say, it gets thrown back out to the client companies of the open source cloud platforms and then we’ve get serious traction. This is what we need to have happen. By the way, there’s a company called Mastodon C. I mentioned AMEE already. There’s another company called Mastodon C out there, who has a dashboard already in place, showing us the carbon emissions of the various cloud providers. It’s not great. They’re guessing it because the cloud providers aren’t reporting it. They’re guessing it based on the location of the cloud companies and utility companies who provide them with their energy but it’s better than nothing.

One other thing I should mention and I don’t want to be totally negative, but this should scare the fuck out of everyone in this room. PricewaterhouseCoopers, not known as being green, agitators, activists, there are the largest of the big four accounting companies. They came out with this report two weeks ago. It’s their carbon report. They come out with it annually. This report tells us that between the years 2000 and 2011 globally, our carbon emissions went down by 0.8% every year. That’s good, 0.8% reduction carbon emissions year on year.

The trouble is we’ve decided we want to keep our global warming figures. We want you to cap the warming at two degrees centigrade. Beyond that, it starts to get very hairy. The temperature has already gone up 0.8 of a degree centigrade, so we’ve got 1.2 degrees left.

According to PwC, the only way to keep this at two degrees is to reduce our carbon emissions not by 0.8%, as we’ve been doing, but to reduce our carbon emissions 5.1% every year between now and 2050. Six times the carbon reductions we’ve been doing for the last 11 years, every year for the next 38 years. So, sorry to be on a bit of a downer, but I have some good news.

This is Jim Hagemann Snabe. Jim is the co-CEO of SAP. I had a conversation with him in Madrid last week about this very topic and about… they are a cloud provider, I was asking him, “Why the hell aren’t you talking? Why aren’t you giving us your numbers? It wasn’t something he was aware of, it wasn’t something he had thought about, and Jim is actually a good guy. He’s actually a sustainability guy. Anytime you hear him talk, in the first three, four minutes of his talk, any talk he gives, he’ll bring up sustainability. Maybe sideways, he’ll talk about resource constraints or something, but he’s always thinking about this. When I brought this up with him, he was blown away because it hadn’t occurred to him at all and he said, “Tom you’re absolutely right, this is a space I want SAP to lead in.” Hopefully, something will come out of that, but it’s not just that.

This is Robert Jenkins. Robert is the CEO of CloudSigma, a Swiss-based company who are a Cloud Company. I’ve had conversations with him about this as well, and he is talking again about doing this also, about opening and being transparent about their emissions, so we’re getting some traction now in the space. Finally, Greenqloud, Greenqloud’s CEO is a guy called Eiki and I’m not going to try to pronounce his surname because it’s Icelandic and it’s just completely unpronounceable. Eiki has given me permission here today, to announce on behalf of Greenqloud that Greenqloud, because they are a CloudStack customer or user, and they have this energy on emissions stuff already built-in.

In Q2 of next year, they’re going to contribute their code back into CloudStack. So, for me, I think that’s a serious win because then it gets distributed back out. For me, that was a highlight of my last couple of week’s work, just getting Eiki to agree to in Q2 next year contributing that back into CloudStack.

So, that’s it. That’s me. Adding emissions, metrics and reporting to cloud computing will help reduce emissions. That’s it.

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Do you want to influence EU policy on green cloud computing?

Cloud

European policymakers are reaching out to ask European citizens for their help in crafting legislation for the better of all its citizens. This is a nice departure from the lobbytocracy which exists in some countries.

Currently, as part of the Digital Agenda for Europe, there is a process in place called the Digital Agenda Assembly which has a call for discussion and feedback on a number of hot IT issues such as Cloud, Data, Security, and Social Media.

Anyone can sign up at the site and contribute.

Via Paul Miller I came across a discussion on Green Cloud, which regular readers here will recognise as an issue I have an interest in.

The Cloud group moderator posted the following question:

The recent report by Greanpeace [sic] (http://www.greenpeace.org/international/Global/international/publications/climate/2012/iCoal/HowCleanisYourCloud.pdf) cast a light on importance of energy efficiency and use of renewable energy sources for cloud environments and data centers.

Should policy address such issues in future EU cloud strategy and how ensure a green and sustainable cloud development?

Your ideas on this subject are more than welcome.

Wow – an opportunity to influence EU policy and possibly make cloud computing more Green – I couldn’t resist. I posted the following response:

Greenpeace are correct – data centers are using dirty power to run their clouds.

Unfortunately this is often outside their control – especially in the US where the utility companies are regional monopolies and there is no choice in energy provider.

In the EU, there is more competition, and data centers should be encouraged to use energy from renewable sources and to site new builds where renewables are available. The greater the demand for renewable energy, the more will be built out.

I think the best way to encourage this is through transparency. Data centres need to be required to report fully and regularly their complete energy and emissions.

Iceland is currently running one of the world’s most reliable energy grids (it doesn’t have any outages). As well as being highly reliable, it has the cheapest energy in the western world and it is 100% renewable.

Iceland is due to become a full member of the EU in the coming year – so that should help the EU in attracting cloud providers looking for a renewable energy source.

But that is quite a local solution.

The real requirement is to move our all energy generation away from fossil fuels as soon as possible – this is important not just for cloud computing, but for every aspect of our life.

As Paul says above, mandating data centres to use Green power is not an answer, moving our generation to renewables (and requiring full transparency and reporting from data centres) is.

So there you have it – my recipe for making Cloud computing Green is to require full (auditable) reporting from all data centres (and every significant energy consumer, why stop at data centres?) of the entirety of their energy and emissions. This will create a significant demand for more renewable energy, leading the generators to re-double their efforts to bring more renewables resources on-line and rewarding those who have already done so.

So if you want to influence EU policy on cloud computing to make it more Green, why not head over to the Green Cloud discussion at the Digital Agenda and let your voice be heard too?

Photo Credit supertin

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Potent Social Media Strategies for Utilities

I gave the closing keynote at the SAP for Utilities conference in San Antonio recently. I requested a video of my presentation, and I had it transcribed so I could post it here.

Good afternoon everyone. I?m painfully aware that I am the last thing standing between you and wine tasting, so I?ll try and keep this brief. I have 66 slides to get through in my presentation, so I?ll rip through them reasonably quickly and I don?t think there will be time for Q&A at the end but I?ll be at the wine tasting, so do please feel free to come up and ask me any questions.

Also my details are here. This is my best Steve Jobs? impression. You can see there my job title, my email address, my blog, my twitter accounts, my mobile phone although it?s over there at the movement, so no point in calling it right now and my SlideShare. SlideShare, if you are not familiar with it, is a site into which you can upload presentations and people can see them online at that site. I have uploaded this presentation to that site an hour ago and it?s already been seen over 200 times. So, you are the last guys to see it, sorry about that.

So, that?s me. Quick show of hands here, to see who you guys are. How many people in the room here work for utility company, okay. Good number of people. How many people here work for an organization that has an active social media account, be it a Twitter, Facebook? Reasonable number again, okay. How many people here work for an organization that actively blocks some of their employees from seeing social media? Quite a number as well, okay, interesting. Good that gives me a good idea of where to pitch the conversation.

So, I am going to run a video for you after this right, power of social media, if anyone doubts the power of social media, you might want to have a conversation with this chap, this is Hosni Mubarak former President of Egypt for 30 years, now behind bars, largely overthrown with a lot of organization done online using Facebook and Twitter. He is now being charged with corruption and murder, so, an interesting case study in the power social media.

So, I am going to run this video and it?s a video which gives you an idea of some of the things that are happening in social media at the moment. Some of the data points in it, and there are a lot of data points in it, so don?t try and take them all and just try and let it flow over you. Some of the data points in it are little dated to this point, the video was made about six months ago and so keep that in mind, things keep moving on at an incredible pace in this industry. So, here we go, I said here we go.

[Video Presentation – 00:02:45 – 00:07:02]

Okay, that?s my presentation thanks very much, kidding. So one thing I should about this slide, because I said it?s available on SlideShare, underneath each of the images, you?ll see a little bit of text there, it?s hard to read from here, it?s not meant to be read from here, it?s actually a clickable link, so if you do download the slide and I think Stephen maybe making it available as well through The Eventful Group site. Those links are clickable, so you?ll be able to go and find those videos and photographs and anything else that?s on the presentation.

So, that?s? all very good social media cures cancer all that good stuff, what does that mean for utility companies? Well, utility companies have a number of challenges facing them at the moment, they have a lot of challenges facing them at the moment, but there is a number of them in particular that I have identified that I think social media will be able to help with.

One of the things utility companies have is an aging workforce. The US department — the US Bureau of Labor Statistics has said that in the next 30 to, sorry in the next ten years, 30 to 40% of the utility workers are going to retire.

Now I was talking to Dave Fortis sorry Dave Legge sorry I am getting confused here, Dave Legge of FortisBC the other night and he told me that in his organization, that?s 50% in the next five years. So somewhere between 30 to 50% of employees are going to retire in the next five to 10 years from utility companies, that?s a massive loss of knowledge right there. It?s also a huge — it?s a huge challenge in the recruitment and retention area. Some of these things social media will be able to help with.

Utility companies have an image issue. They are thought of as at best boring by their customers and in some cases they have a bit of a credibility deficit. Consumers often are a bit wary of trusting utility companies when they say, we?d like you to use less power. They are facing, utility companies are facing increasing demands for energy at a time of dwindling supply and they are also facing increasing demands for things like customer service, for environmental footprint reduction and other things like that.

So, how can social media help? Well in the recruitment sphere, a very obvious one is LinkedIn. LinkedIn is a phenomenal channel for recruitment and one of the key aspects of LinkedIn that a lot of people may overlook is the groups? functionality in LinkedIn. This is the energy and utilities network, it?s a very, it?s a thriving community in there and for utility companies it?s a good place to go to kind of push out your brand, be knowledgeable, exchange information, get people on board and be seen as a company that?s plugged into social media and is willing to give away information that way your company?s brand is out there and it seem to be more social media savvy.

In terms of Retention, we saw a number of people in the room put their hands up and asked how many companies block social media, it?s a big mistake. Again, in a conversation with Dave from Fortis, he gave me a story of an interview situation where a young graduate was in an interview and there came time for the graduate to ask questions to the Interview Board, and he said, ?What?s your company?s policy on social media?? And the company said, ?Well, we block it. We don?t allow employees access to social media,? and his response was, ?Alright, thanks very much for your time,? and he walked out.

Now, that may well be an apocryphal story, but its indicative of a mentality in graduates who are now in university or who have recently left university they?re used to these tools, they use this tools all the time for information dissemination and for information collection. You bring them into your organization and you?ll need to, because you are losing a lot of people at the other end, you bring them into your organization and you have social media sites blocked, it?s like putting a rotary dial phone on their desk with a padlock on the dial.

So, another challenge social media can help with as I said is around image and the fact that utility companies were often perceived as boring. Another company that had this kind of stay and tired image was a company called Old Spice that makes men?s cologne and bath products and things like that. And they decided last year that they were to go on a bit of social media spree and rebrand themselves, will not rebrand but spruce up their image a bit. So they ran a serious of ads on YouTube and this one of them I?ll just run it for you.

[Video Presentation – 00:12:09 – 00:12:40]

This campaign went completely viral because that?s such a good add and then a ran a serious of follow up adds in fact they ran a 24 hour series of adds where people could submit questions on Twitter, and that actor would reply to the questions in a similar format. It went wild, it went ballistic, the ad itself has currently had about 36 million views on Twitter just that one ad, not all the other ads just that one ad, the other ads have lots of views as well. That?s cool, that?s great, but even more importantly Old Spice sale is increased 100% in the month following that campaign, and a year later they?re still up 50%.

The brand, the Old Spice brand has become sexy and cool and with a guy like that it?s obviously it?s going to be sexy, but it has become cool and hip and trendy.

I mentioned knowledge management and lot of knowledge walking out the door with the elder generation as they start to retire. Well, your not going to be able to suck the information out of their heads, not with an a device like this anyway, but what you can do, is you can start rolling out some social media platforms because the old knowledge management techniques never really ran so well, but when you make more interesting for people for people they start becoming more willing to share the information.

Now you don?t really want to be having the pointy haired bus type blogger on board, that one never goes down that well, but what you want to do is you want as you want to role as for example an internal blogging scheme, don?t bother trying to read that, it?s just an example, a screen shot of an internal blog at IBM. The blogger there is guy called Luis Benitez. One of the things to notice is, you see the little red circle up there, I?ve got that circling a way of recommending the blog post, if you are on the internal IBM blog and you read that blog and you go, ?that?s a good blog post, I got a lot out of that?. You can click on that little green button and it gets an extra star.

So it?s a rating mechanism for a blog posts on that internal platform, the IBM internal blog platform. IBM has got 18,000 blogs on their internal blog platform, 18,000 individual blogs and that?s a huge sea of information. And as people blog and I say put up posts they?re either recommended if they?re good or they?re not and they get lost if not good. You can see as well they?re on this platform on the right hand side, you?ve got similar blogs listed, so this is the one you find particularly, interesting you see similar bloggers there and that?s automatically generated based from the content.

On the left hand side you got a what?s called tag cloud, clicking an any of those words from the tag cloud get?s you related content. So, it?s an incredible way of getting information spread out through the organization and collate it back in again. And as I say there is 18,000 of them there, this other blog, it?s a friend of mine, a guy called Andy Piper. Andy Piper celebrating in this blog post his sixth anniversary as an internal blogger on the IBM blogging platform, so he he?s been out there six years, in fact the blogging platform, the internal blogging platform IBM has, has been going strong for eight years now.

So IBM have this stuff mastered and they?re not the only ones there is lots of other companies doing, but it?s a great way of capturing information and sharing it throughout the organization. You don?t have to just stick with blogs, you want to be taking a broad approach to this.

This is a screen shot of Wikipedia and just happens to be the SAP Wikipedia page, but the circle up there is circle you don?t bother trying to read it as far way I know and small but the circle there is circling the edit button, you might not have noticed it, but on every single Wikipedia page there is an edit button and this means you can click on the edit button and change the content of the page and that?s what makes Wikipedia so powerful, anyone can change the content of any page and the size.

So if you know something is wrong on the page you can go and correct it. And, an example of this for me that was really interesting was a few years ago when I was living in Ireland, I was working in the kitchen at home on my laptop and I had the radio on in the background. And it was around the time of the Papal enclave; they were electing a new Pope. And the radio was on I was listening to music and the next minute the news broke into the programming and said the Cardinals are out on the balcony in Saint Peter?s Square, we think they?re going to make an announcement.

And the next minute the voices start coming over speaking Latin, no idea what they were saying, but I heard the word Ratzinger, and I recognized he had been mentioned in a couple of previous news broadcasts as Cardinal Ratzinger, a German Cardinal who was up for the papacy. So I immediately pulled up Wikipedia, type in Ratzinger and I?m redirected straightway in real time before the Latin has finished to the webpage on Wikipedia of a Pope Benedict, whatever number he is. I started reading down through it and I see a section in it about alleged Nazi links in his youth and I call my wife over to look at and said, look at this and I refreshed the page and it?s gone. It?s been edited out, it turns out it wasn?t true what have been said there.

So it happens in real time, stuff is corrected. If you go in and you make a change on that SAP page or any page in there and it?s factually incorrect, the chances are within minutes it will be edited back out.

PBworks is a company that provides a hosted wiki for you, so I was using that when I based in an organization called it@Cork really good, there is a number of other ones I will show up in a second, I just happen to use this one, its hosted Wiki. What we use to do with that one in the organization was used to have weekly board meetings and whoever was taking the minutes would plug in their laptop to the data projector and they take the minutes and will be displayed upon screen for everyone who is in the meeting to see.

So everyone was watching the minutes as they were being taken and if people were given an assignment or signed up to do something, that was noted in minutes and their initials put beside it. And during the following week, they would go in themselves and update the wiki page on how they were getting on with their assignment. So that the following week, when everyone came to the meeting, everyone had already read the minutes of the previous one and the updates to it and then the next meeting happened everyone was on the same page, everyone saw that minutes for that meeting, so everyone saw and everyone signed off on the task that have been assigned and everyone saw in real time how they?re being updated, that?s just one used case for a Wiki, but is a really good one, it saves a lot of e-mails for example.

PBworks are one company that provide them, another one is Socialtext, another one is MindTouch they?re all good, I?m not going to recommend anyone above the other, they all provide the same kind of functionality.

If people are not into writing, maybe some people are better at speaking than writing, put up a video blogging platform for them or go around with the camera and just start interviewing people, asking them what they are doing and put up on a central site, or put up an YouTube and have it for internal viewing only if that?s what you want or let everyone see it, why not?

Well, they?re kind of communications platforms, and sharing and collaboration platforms are available, are ones like Salesforce?s chatter.com which allows you internally to have a kind of a Facebook and a collaborative Facebooking application internally. You can invite customers in as well if you want or not, but it can be internal or internal and external. You get similar functionality from things like Huddle and this is SAP?s StreamWork application, which is reasonably similar as well, and this is Rypple. Rypple is a performance management application, which is collaborative and sharing and it?s open and transparent and everyone sees. So it?s another one of these applications.

The point about these applications is these are the kinds of applications that people are using in college at the moment, and these are the kinds of application and the kinds of functionality they expect when they go into their new employer and they will feel extremely restricted if they don?t have access to these kinds of tools which they?re already well familiar with and they?ll get frustrated if you don?t ? if you are hobbling their functionality, they?ll get frustrated and then move on and that?s not what you want.

This for example is a Google spreadsheet. Google provide spreadsheet functionality. In this particular screenshot it?s two people working on the spreadsheet at the same time. This spreadsheet is delivered via browser. There is two people working on it, the blue one and the red one. And over the right hand side, you can see a chat screen that is going on as they are talking to each other about the edits they are making to the spreadsheet and they can be anywhere in the world.

So those are some scenarios. They are customer service scenarios which are phenomenal that can be addressed using a social media as well. A great case study here is KLM. Last year when we had the volcano and the ash cloud over Europe, KLM hired a 120 people and put them full time in shifts, full time monitoring specifically Facebook and Twitter, the two key ones. And they had, they were monitoring them, they were looking for mentions of KLM and they were looking for KLM customers where stranded somewhere and they did their best and they went to all out until the ash cloud cleared up, they kept the volume of calls done at the call centre to a minimum.

It was so successful for KLM that they continued the program; they scaled it down because they didn?t need 120 anymore but they now have 23 people full time on social media, in their social media department, constantly monitoring mentions of KLM, reaching out to people, helping anyone who is in trouble.

There was a hurricane here, couple of weeks back up the East coast and a great example of response to a hurricane using social media was Baltimore Gas & Electric, it was one of the ones I found, there was a number of them, Baltimore Gas & Electric really went to town. You can see this is their homepage. And the yellow bit at the top is informational and you can click on links there and go in and get more information about Irene. But down on the bottom right there you see their links to their different social media channels and their Twitter one is highlighted and these are all links.

So on their YouTube page, they had 25 videos about Irene. The first nine videos, they put up about Irene where about preparation, getting ready for Irene is coming, this is what you need to do. The next 16 videos that they put up about Irene were about the restoration works that were going on the different parts of their constituency. So people who are frustrated because they are out of power, they — at least they knew that BGE which is going all out and they had people in different areas and they could actually watch them working and see interviews with the guys who were doing the work.

Not alone that, but they had a — they were monitoring Twitter as well. There were 4000 Twitter followers in their Twitter account. They were doing things like they were saying to people you can see the bottom on one there, they are saying to people, DM me your address and I?ll send you an ETR. DM is Twitter speak for send it to me privately so that no one else sees your address, send it to me privately, I?ll take a look and I?ll send you back an ETR, an Estimated Time of Restoration. They?re answering people?s questions and they are also telling people in the top one what percentage of restoration they?re out at this point.

On their Facebook page, they have something like what is it 5800 followers and again they are doing the same thing. They are looking at people going to their Facebook page, people were asking questions about the restoration and they are answering them in real time. They had a Flickr stream. Flickr is a photographic site, photo sharing site. They had a 158 photos related to Irene. So again people could go in there and they could see what was going on. And it?s not just Irene related stuff.

This is the playlists page on their YouTube?s channel. They have videos there related to community programs they are involved with, related to safety with electricity, related to news coverage they received, Related to smart energy and these are all groups of videos put together, you can go to any of those and check out any of the videos they have on them.

Dominion was another one that did real well. Dominion have — you can see the videos they have put up there, some of those videos have had 6000 views. People are really interested in finding out what was going on obviously under Irene. And Dominion?s Twitter account, they have over 7000 followers or 3000 tweets and again they were doing stellar job about keeping people informed.

This is PSNH?s video page. They weren?t as — PSNH doesn?t seem to be as out there on the social media front but the little circle I have there shows that this particular video that they put out there was picked up by a local news organization. And that?s interesting because if you are putting this content out there, the news organizations are hungry for content around this stuff because it?s a big story. And if you are controlling the content, if you are putting the content out there, then it?s your content that gets shown in the news. You are helping to write the story and it?s your story that?s been told in your voice with your people.

Now here is a thought for you. What if every truckload for an outage has a smartphone as a matter of course so that when they get to site there is an outage maybe a truck hit a pole or tree came down, the first thing one of the guys in the truck does is get there with the smartphone, take a quick video of what?s after happening, does a bit of a voice over it says we arrived here at this time on this date, this is what?s after happening, we reckon it will take us about an hour to fix, we should be back about this time and then he clicks a button to post it to YouTube. Entirely possible today. All it does, all it takes is process change.

And what happens? Your people on Twitter, your people on Facebook are monitoring the YouTube channel as soon as any queries come in, they direct all queries to the YouTube page. See this video on a YouTube page, this is what?s after happening, this is when you?ll be back up, we have people on the ground, this is them working on it. So now people know what?s after happening, know when the power will be back on and they are far less frustrated with the lack of power.

You can also do things like crowd source ideas from your customers. Dell had this IdeaStorm page, fantastic page they?ve had something like 16000 suggestions coming to them on this page. And the suggestions, I mean anyone can put in a ridiculous suggestion there, but what they do is they get everyone who visits the page, they give them the ability to vote up or vote down ideas and to comment on ideas. So far they have implemented nearly 500 of the ideas. So these are ideas that people are coming in and giving up Dell, please, please do this with the next laptop, whatever it is, add this functionality to it, and you know if people have come in and recommended this and commented on us and it?s an active idea. You have got an audience that is dying for this laptop or desktop or monitor or whatever it is. So, as soon as you bring that to market and tell people, we took your idea on board and here is the product. You?ve got a ready audience of people that just flock into it to buy it.

Starbucks did the same thing actually, and there are number of organizations doing that they are not alone. The platform that allows people to do that is one called Get Satisfaction, they?re a start-up out of California. There are platforms for companies to do this kind of thing, to crowd source ideas, to talk of brand evangelists. No SAP would be or no SAP talk would be complete without some reference analytics. So social media is an area that?s ripe for analytics and there is a lot going on that space as well and another video for you this time it?s from a source you wouldn?t expect it?s from Gatorade, the drinks people. And Gatorade have built a social media analytics application for themselves, but it gives you an idea of the kinds of things you can do with social media and analytics.

[Video Presentation – 00:30:26 – 00:31:41]

Powerful stuff. They say they?re tracking their own brand and I?m sure they are, but you know as well that they?re, they are tracking all their competitors as well. The application Mission Control that they are using there was built with the aid of a company called Radian6. Radian6 were bought by SalesForce a couple of weeks for a $340 million. Radian6 aren?t the only player in the game, IBM have a social media analytics application that they released earlier this year. Adobe have one, which they got by their purchase of Omniture, last year, for $1.8 billion, and SAS has one as well and there are a number of other players out there, there is a Advantech or something and there are few others and start up in various stages. So it?s a hot happening area.

So I mentioned energy management and the increasing demands that utilities are facing around energy and, you know, how can we affect that with social media. Well, firstly you got to be aware that according to this article study released not so long ago at least 95% of your customers are interested in energy management information or energy consumption information. And then you get these kinds of applications being released, this is one out of SAP research and it?s a kind of a prototype energy management application, it?s not that interesting really.

There is a metric called the mean time to kitchen drawer. It?s also known as the mean time to junk drawer. I think you know what it is, it?s, you get something, this energy management application and it?s all shiny and you flip on the light switch and the graph goes up and you flip off the light switch and the graph goes down and oh, that?s cool? for about ten minutes. And then a week or two later you might look at it again and a month or two later and eventually it?s consigned to proverbial kitchen drawer and you never see it again. So how do you fix that? Well this is the new smart meter analytics application that SAP are releasing. And they have gone some way towards fixing it.

They have got a little buttons there for sharing that information with your social graph, you can push it out to your Twitter account or your Facebook account and you know just push a button and you get this thing up and you click submit and it?s sent out to your site and that?s cool.

Digressing for a second, this is a site called Foursquare, nothing to do with energy. Foursquare is a location application, when you go somewhere you can check into that location on Foursquare which tells people where you are at this point in time. So I go to this hotel, I can check into this hotel on Foursquare and say I am here. And if anyone in my network is around I get notified that people I know are in the area and if I didn?t know that?s cool, it?s great I get to meet them, excellent I didn?t know they are in the area fantastic, so that?s nice, but as well as that it gives you tips and tricks on the things in the area.

So oh, there is a nice restaurant a couple of miles down the road, you might want to try out, it has all this kind of stuff as well, it?s a phenomenal resource. That?s nice again nothing to do with energy so far. What it also has though because you usually check in on a phone, right because it?s got your GPS and it?s something that?s always with you.

So when you check in on the phone and say where you are, if you?ve checked in there a few times there a possibility that you?ll be the person who?s checked in there most in the last X number of days and then you become the mayor of that location. So, on this one I became the mayor of this hotel in Milan. And you get points, so I got an extra five points for that check in, because I got, I stole the mayor ship from some Japanese guy and there is a leader board there.

So I went up the leader board, by those extra points and I am suddenly tied with John, John Peavoy, it tells me there, nice you caught up with John. So suddenly you are starting to get a bit of competition in there and that gets interesting. And then you start to get merit badges and achievement badges and all kinds of cooler things like that.

Now what if we take this energy management application and on top of that we layer in not just the ability to share it to Facebook and Twitter and Google+ and whatever social network is floats your boat, what if you have leader boards in these energy management applications.

What if you have achievement badges, what if you start adding in targets and scores, then it becomes fun, then you build engagement and you are empowering people and people are telling each other, see how we did last week on this energy management application, I pulled ahead an extra five points, awesome. And what if you start feeding that into schools programs so you get kids involved and you get the old pester power on the parents to turn off the lights and stuff like that. Then it becomes really cool and then it gets spread out there, then people start to become really involved. So, back to the challenges I mentioned at the start. Some of the things social media can help with making utility companies a little less boring, help with customer service and the better the customer service the more trusted the organization becomes. You start making the utility company become more sexy.

How many kids do you hear in school who say, oh I?d love to work for that utility company they?re so cool. I haven?t heard any but if you start making them more social media savvy and that company puts out ads like that after, Old Spice guy thank you, mind freeze, Old Spice guy, so start getting some handsome actors out there with, I don?t know, crimping tools, you know, what I mean, start making utilities sexy, start getting them social media savvy, start communicating with your customers in ways they want to hear about and then you start to resolve a lot of the kind of problems that are and the challenges that they?re facing at the moment.

Thanks very much.

By the way, I have a mind map of this talk at the end there. So, if you want to see the, kind of, wild things that went through my head as I was trying to build this talk, it?s there too.

Okay.

Thanks.

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GE’s U.S. Consumer Impressions of the Smart Grid survey

Results of GE Smart Grid consumer survey

GE published a U.S. Consumer Impressions of the Smart Grid [pdf] survey* recently.

I spoke to the general manager of Metering and Sensing Systems for GE?s Digital Energy business, Luke Clemente about the survey and he told me that the main points of the survey were:

  • 96% of Americans who are familiar with the smart grid are overwhelmingly positive about the technology and what it will do for the country
  • while only 2% thought that smart grid was not a smart investment by utilities and/or consumers
  • 80% of U.S. consumers are excited about upgrading the electrical network with smart grid so that their country can rely more on clean domestic energy sources
  • 78% think that the smart grid would help reduce the number of power outages and restore power more quickly when outages do occur
  • 74% understand that the smart grid will give them the info they need to make better decisions about electricity usage
  • 72% think the smart grid will help them save money on their monthly bills
  • 63% believe the smart grid will create new jobs in the energy sector
  • 66% agree they would buy smart appliances and other in-home devices to maximize their control over energy once smart grid rolls out in their community

In our follow-up conversation Luke said

One of the awareness issues which needs to be driven, is that it does cost more to generate electricity at two o’clock in the afternoon than it does at 2am. To the extent that we can shift our use of energy to less intensive times, that will end up driving better utilisation of the grid and better economics

Luke went on to mention the Department of Energy’s year-long study which showed that consumers, when given information on their electricity consumption, reduced their bills by 10% and reduced peak demand by 15%.

There are three crucial points here –
consumers have quite a positive attitude to Smart Grids
consumers will adjust their behaviour when given information related to their energy use and
that response is good for the grid (and by extension, for its users).

We have seen some instances where utilities failure to communicate effectively with their customers has led to blowback against Smart Meter and Smart Grid projects.

However, as this survey shows, overall consumer sentiment to Smart Grids is positive. Utility companies need to beware that they don’t squander this goodwill – right now it is theirs to lose.

You should follow me on twitter here.

* The survey was conducted in March 2010 by StrategyOne among a census representative sample of 1,000 U.S. consumers via telephone. The margin of error for the sample of U.S. consumers (n=1,000) is + 3.1% at the 95% level of confidence.

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Seriously people, the correct order is planet first, then people, then profit.

Someone I know and respect made a bit of a boo boo last week and I called him on it. In response to the announcement of BP’s “Giant oil find” in the Gulf of Mexico, he Tweeted:

Giant oil reserver [sic] in the Gulf, most rushing to drill it except the US. Wouldn’t that be ready made jobs and revenue?

To which I replied:

Wouldn’t it be ready-made pollution (CO2)? Ethics of celebrating jobs & revenue based on planetary destruction?

People seem to be all too ready to forget about the fact that climate change doesn’t stop to consider whether there is a recession. It doesn’t say, “oh, there’s a down-turn and you want to pump a few extra million tonnes of CO2 into the atmosphere? No problem, you should have said, go right ahead”

At least in the case of the BP find, according to this Wall Street Journal analysis, recovery rates may be as low as 5-15% (150-450m barrels of oil) – still a lot of CO2 but significantly less oil than the headlines were suggesting.

e.on UK, is the energy company which owns the infamous Kingsnorth power station. Kingsnorth is one of the largest coal-fired power plants in the UK and alone is responsible for roughly 7.3m tonnes of CO2 being emitted into the atmosphere per annum. e.on UK has launched Talking Energy, a channel on YouTube to foster an online dialogue about energy.

However, as you would expect, the company stresses energy sources which will benefit e.on and its shareholders in the short-term, as opposed to trying to benefit the planet (and thus the company and its shareholders) in the long term. In the video above you see Jeremy Nicholson, lobbyist and Director of the Intensive Energy Users Group – “a single-issue lobby group which campaigns for secure industrial energy supplies at internationally competitive prices”. Jeremy throws out the old lie about the need for baseload power for the electricity grid as a reason to keep investing in carbon polluting energy sources.

The baseload argument is an old one and one which was given its severest kicking recently when the Jon Wellinghof, Chairman of the US Federal Energy Regulatory Commission said back in April that:

renewables like wind, solar and biomass will provide enough energy to meet baseload capacity and future energy demands. Nuclear and coal plants are too expensive, he added.

“I think baseload capacity is going to become an anachronism,” he said. “Baseload capacity really used to only mean in an economic dispatch, which you dispatch first, what would be the cheapest thing to do. Well, ultimately wind’s going to be the cheapest thing to do, so you’ll dispatch that first.”

Now if the chairman of the US Federal Energy Regulatory Commission believes that renewables can provide enough power to meet baseload and future energy demands, I’m going to take his word over e.on’s and their lobbyist’s.

e.on, some questions for you:

  • Does CO2 cause climate change (and the consequent deaths of thousands of people annually, not to mention species extinctions, environmental destruction, etc.)?
  • Do you care that your pollution is killing people and destroying the planet?
  • When do you plan to stop killing people, destroying the environment and driving species to extinction (i.e. when do you plan to stop emitting CO2)?

Seriously people, the correct order is planet first, then people, then profit.