Cloud computing and supply chain transparency

Supply chains? Yawn, right?

While supply chains may seem boring, they are of vital importance to organisations, and their proper management can make, or break companies.

Some recent examples of where poorly managed supply chains caused at best, serious reputational damage for companies include the Apple Computers child labour and workers suicide debacle; the Tesco horse meat scandal; and Nestlé’s palm oil problems.

What does this have to do with Cloud computing?

Well, last week, here in GreenMonk we published a ranking of cloud computing companies and their use of renewables. Greenqloud, Windows Azure, Google, SAP and Rackspace all come out of it quite well.

On the other hand, IBM and Oracle didn’t fare well in the study due to their poor commitment to renewables. But, at least they are reasonably transparent about it. Both organisations produce quite detailed corporate responsibility reports, and both report their emissions to the Carbon Disclosure Project. So if you are sourcing your cloud infrastructure from Oracle or IBM, you can at least find out quite easily where the dirty energy powering your cloud is coming from.

Amazon however, does neither. It doesn’t produce any corporate responsibility reports and it doesn’t publish its emissions to the Carbon Disclosure Project. This is particularly egregious given that Amazon is, by far the largest player in this market.

Amazon’s customers are taking a leap of faith by choosing Amazon to host their cloud. They have no idea where Amazon is sourcing the power to run their servers. Amazon could easily be powering their server farms using coal mined by Massey Energy, for example. Massey Energy, as well as having an appalling environmental record, is the company responsible for the 2010 West Virginia mining disaster which killed 29 miners, or Amazon could be using oil extracted from Tar sands. Or there could be worse in Amazon’s supply chain. We just don’t know, because Amazon won’t tell us.

This has got to be worrisome for Amazon’s significant customer base which includes names like Unilever, Nokia and Adobe, amongst many others. Imagine what could happen if Greenpeace found out… oh wait.

Just a couple of weeks ago US enterprise software company Infor announced at Amazon’s Summit that it plans to build it’s CloudSuite offerings entirely on Amazon’s AWS. As I tweeted last week, this is a very courageous move on Infor’s part

All the more brave given that Infor will be using Amazon to host the infrastructure of Infor’s own customer base. “Danger, Will Robinson!”

This lack of supply chain transparency is not sustainable. Amazon’s customers won’t tolerate the potential risk to their reputations and if Amazon are unwilling to be more transparent, there are plenty of other cloud providers who are.

Image credits failing_angel

Cloud computing companies ranked by their use of renewable energy

Cloud-Providers Renewables use updated

UPDATE: After publication of this post I was contacted by Rackspace who informed me that they do, in fact, publish their megawatt electricity consumption. it is contained in an investor report (PDF) published on their Investor Relations page. This shows Rackspace used just over 105mWh of electricity in 2013. This means that the 35% of Renewables figure corresponds to 36.8mWh (in fact it comes to 36,785kWh, or 0.037m kWh, as it is now represented in the chart above). Consequently, I adjusted the chart and moved Rackspace up a number of places in the rankings.

Cloud computing is booming. Cloud providers are investing billions in infrastructure to build out their data centers, but just how clean is cloud?

Given that this is the week that the IPCC’s 5th assessment report was released, I decided to do some research of my own into cloud providers. The table above is a list of the cloud computing providers I looked into, and what I found.

It is a real mixed bag but from the table you can see that Icelandic cloud provider Greenqloud comes out on top because they are using the electricity from the 100% renewable Icelandic electricity grid to power their infrastructure.

On the Windows Azure front, Microsoft announced in May of 2012 that it was going to go carbon neutral for its facilities and travel. Microsoft are now, according to the EPA, the second largest purchaser of renewable energy in the US. In 2013 they purchased 2,300m kWh which accounted for 80% of their electricity consumption. They made up the other 20% with Renewable Energy Certificates (RECs). And according to Microsoft’s TJ DiCaprio, they plan to increase their renewable energy purchases from 80% to 100% in the financial year 2014.

Google claim to have been carbon neutral since 2007. Of Google’s electricity, 32% came from renewables, while the other 68% came from the purchase of RECs.

SAP purchased 391m kWh of renewable energy in 2013. This made up 43% of its total electricity consumption. SAP have since announced that they will go to powering 100% of its facilities from renewable energy in 2014.

The most recent data from IBM dates from 2012 when they purchased 764m kWh of renewable energy. This accounted for just 15% of their total consumption. In the meantime IBM have purchased cloud company Softlayer for whom no data is available, so it is unclear in what way this will have affected IBM’s position in these rankings.

The most up-to-date data on Oracle’s website is from 2011, but more recent data about their renewable energy is to be found in their 2012 disclosure to the Carbon Disclosure Project (registration required). This shows that Oracle purchased 5.4m kWh of renewable energy making up a mere 0.7% of their total consumption of 746.9m kWh in 2012.

Rackspace have no data available on their site, but in email communications with me yesterday they claim that 35% of their electricity globally is from renewable sources. They declined to say exactly how much that was (in kWh) See update above.

Amazon discloses no information whatsoever about its infrastructure apart from a claim that its Oregon and GovCloud regions are using 100% carbon free power. However, they don’t back up this claim with any evidence, they don’t disclose to the Carbon Disclosure Project, nor do they produce an annual Corporate Responsibility report.

The other three cloud providers in the list, Softlayer, GoGrid, and Bluelock have no information on their websites (that I could find), and they didn’t respond to written inquiries.

I’ll be writing a follow-up post to this in the next few days where I look into the supply chain risks of utilising cloud platforms where there is no transparency around power sourcing.

Technology for Good – episode ten

Welcome to episode ten of the Technology for Good hangout. In this week’s show we had special guest Bill Higgins, who works on IBM’s Cloud & Smarter Infrastructure. Given the week that was in it with Google’s slashing of cloud computing pricing, and Facebook’s purchase of Oculus Rift, there were plenty of stories about cloud computing and social networks.

Here’s the stories that we discussed in the show:

Climate

Renewables

Cloud

Social

Open

Internet of Things

Misc

SAP to power its cloud computing infrastructure from 100% renewable energy

Wind turbine

Cloud computing is often incorrectly touted as being a green, more environmentally-friendly, computing option. This confusion occurs because people forget that while cloud computing may be more energy efficient (may be), the environmental friendliness is determined by how much carbon is produced in the generation of that energy. If a data centre is primarily powered by coal, it doesn’t matter how energy efficient it it, it will never be green.

We have mentioned that very often here on GreenMonk, as well as regularly bringing it up with cloud providers when talking to them.

One such cloud provider is SAP. Like most other cloud vendors, they’re constantly increasing their portfolio of cloud products. This has presented them with some challenges when they have to consider their carbon footprint. In its recently released 2013 Annual Report SAP admits

Energy usage in our data centers contributed to 6% of our total emissions in 2013, compared with 5% in 2012

This is going the wrong direction for a company whose stated aim is to reduce the greenhouse gas emissions from their operations to levels of the year 2000 by 2020.

To counter this SAP have just announced

that it will power all its data centers and facilities globally with 100 percent renewable electricity starting in 2014

This is good for SAP, obviously, as they will be reducing their environmental footprint, and also good for customers of SAP’s cloud solutions who will also get the benefit of SAP’s green investments. How are SAP achieving this goal of 100 per cent renewable energy for its data centers and facilities? A combination of generating its own electricity using solar panels in Germany and Palo Alto (<1%), purchasing renewable energy and high quality renewable energy certificates, and a €3m investment in the Livlihoods Fund.

So, how does SAP’s green credentials stack up against some of its rivals in the cloud computing space?

Well, since yesterday’s pricing announcements from Google they definitely have to be considered a contender in this space. And what are their green credentials like? Well, Google have been carbon neutral since 2007, and they have invested over $1bn in renewable energy projects. So Google are definitely out in front on this one.

Who else is there?

Well, Microsoft with its recently branded Microsoft Azure cloud offerings are also a contender, so how do they fare? Quite well actually. In May 2012, Microsoft made a commitment

to make our operations carbon neutral: to achieve net zero emissions for our data centers, software development labs, offices, and employee business air travel in over 100 countries around the world.

So by doing this 2 years ahead of SAP and by including employee air travel, as well as facilities, you’d have to say that Microsoft come out ahead of SAP.

However, SAP does come in well ahead of other cloud companies such as IBM, who reported that renewable electricity made up a mere 15% of its consumption in 2012. IBM reported emissions of 2.2m tons of CO2 in 2012.

But, at least that’s better than Oracle. In Oracle’s 2012 report (reporting on the year 2011 – the most recent report available on their site), Oracle state that they don’t even account for their scope 3 emissions:

Scope 3 GHG emissions are typically defined as indirect emissions from operations outside the direct control of the company, such as employee commutes, business travel, and supply chain operations. Oracle does not report on Scope 3 emissions

And then there’s Amazon. Amazon doesn’t release any kind of information about the carbon footprint of its facilities. None.

So kudos to SAP for taking this step to green its cloud computing fleet. Looking at the competition I’d have to say SAP comes in around middle-of-the road in terms of its green cloud credentials. If it wants to improve its ranking, it may be time to revisit that 2020 goal.

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.

Rackspace claims cloud is Green but fails to provide data

Rackspace

Rackspace’s Director of Sustainability Melissa Gray, wrote a piece recently on the Rackspace blog titled The Greenest Computing is Cloud Computing.

Given that Cloud computing’s impact is a topic we cover regularly here on GreenMonk, we were excited to see a cloud provider address this issue, especially when this provider is one we have covered favourably in the past.

However, we were disappointed with the article due to it’s lack of any specific data to prove its case. Here are some quotes from the piece:

Every watt Rackspace uses is tracked — It came from somewhere (a power company, a generator) and it went somewhere (an office, a data center to power a server or power infrastructure).

Great – so how myuch power does Rackspace use, and what are its emissions?

We continually take steps to improve energy efficiency and reduce consumption of other natural resources.

Nice, so how much were Rackspace’s emissions in 2010, how much did you reduce them by in 2011, and what’s your target for 2012?

How much of those emissions were produced by your cloud infrastructure? And how much emissions did you displace by doing so?

We left the following comment on the Rackspace blog – it hasn’t shown up there yet, it is probably stuck in moderation somewhere (obviously they wouldn’t refuse to publish it):

Hi Melissa,

Nice article – well written but I notice you managed to avoid mentioning Rackspace’s emissions anywhere in the piece.

You need to publish some hard data to prove that “the Greenest computing is Cloud computing” – it is not enough just to say so.

If an organisation has an in-house email server, we can relatively easily measure its energy utilisation, and from that calculate its emissions. If it moves to a Rackspace server for the organisation’s email, we now have no way of knowing its emissions. If you are not publishing them, for all we know, their emissions are significantly higher than they were when they were in-house.

If, as you say, “Every watt Rackspace uses is tracked”, then it should be straightforward to report on energy use to your customers (my utility co. can do it). Will Rackspace do this? Or better yet, will Rackspace build this functionality into OpenStack, so all OpenStack users can do this?

Btw, I assume your new data center in Australia was sited based on access to renewables?

We await Rackspace’s response.

Image credit Scott Beale / Laughing Squid

Cloud Computing: Google Apps cloud has a relatively high carbon intensity

Cloud

I have been researching and publishing on Cloud Computing for quite some time here. Specifically, I’ve been highlighting how it is not possible to know if Cloud computing is truly sustainable because none of the significant Cloud providers are publishing sufficient data about their energy consumption, carbon emissions and water use. It is not enough to simply state total power consumed, because different power sources can be more, or less sustainable – a data center run primarily on renewables is far less carbon intensive than one that relies on power from an energy supplier relying on coal burning power stations.

At Greenmonk we believe it’s important to get behind the headline numbers to work out what’s really going on. We feel it’s unacceptable to simply state that Cloud is green and leave it at that, which is why we’ve been somewhat disappointed by recent work in the field by the Carbon Disclosure Project. We would like to see more rigour applied by CDP in its carbon analytics.

Carbon intensity should be a key measure, and we need to start buying power from the right source, not just the cheapest source.

I was pleasantly surprised then yesterday when I heard that Google had published a case study ostensibly proving that Cloud had reduced the carbon footprint of at least one major account.

However, it is never that straightforward, is it?

The Google announcement came in the form of a blog post titled Energy Efficiency in the Cloud, written by Google’s SVP for Technical Infrastructure, Urs Hölzle. I know Urs, I’ve met him a couple of times, he’s a good guy.

Unfortunately, in his posting he heavily references the Carbon Disclosure Project’s flawed report on Cloud Computing, somewhat lessening the impact of his argument.

Urs claims that in a rollout of Google Apps for Government for the US General Services Administration,

the GSA was able to reduce server energy consumption by nearly 90% and carbon emissions by 85%.

An 85% reduction in carbon emissions sounds very impressive – but how does Google calculate that figure? Also worth considering is the age of the server estate – any data center that decommissions older servers in favour of new ones is likely to see an efficiency bump. Assuming the GSA servers running Microsoft apps were more than five years old, they would have seen a considerable efficiency bump simply by running the apps on new servers, on premise or off. Without disappearing down a rathole, its also worth noting cradle to cradle factors in server manufacturing – supply chains consume carbon.

We looked at a whitepaper titled Google Apps: Energy Efficiency in the Cloud [PDF], where the search company shares some of the methodology behind the blog post. We would like to see a lot more detail about assumptions and methods.

The key reference to how Google calculated carbon emissions is this line:
The following summary tallies up every GSA server dedicated to email and collaboration across 14 locations in the continental U.S. and applies the appropriate PUEs, electricity prices, and carbon intensities for each location

Here’s the table:
Google Apps GSA case study

The data in the table above is interesting but if you look at the carbon information, you start to notice something strange – here’s a slightly different view on Google’s data:

Google Apps carbon intensity

While it is no real surprise that Google’s servers produce less CO2 per annum than the GSA’s (4.75 vs 7.69 tons), what is very surprising (to me at least) is the fact that Google’s facilities are significantly more carbon intensive than the GSA’s were (14.5 vs 10.63 tons of CO2 per kWh).

In simple terms, carbon intensity is a measure of the amount of CO2 released in the generation of electricity. The data above, clearly show that the data centres hosting the Google Apps Cloud are not optimised for reduced emissions (the best way for data centers to optimise for reduced emissions is to source electricity generated from renewable sources).

I guess the good news is that, while Google has helped the GSA to reduce its carbon emissions, there’s plenty of room for improvement!

I reached out to Urs for a response to this and because he’s traveling at the minute, the only answer I received pointed out that since 2007 Google’s net emissions are zero. And, in fairness to Google, they do fund some worthwhile offsetting projects, as you can see in the video below (check out the farmer towards the end, he’s just awesome!).

Cloud photo credit mnsc

Use open source platforms to find cloud computing’s energy and emissions footprint

Dials

Regular GreenMonk readers will be very aware that I am deeply skeptical about claims that Cloud Computing is Green (or even energy efficient). And that I talk about the significant carbon, water and biodiversity effects cloud computing can have.

One of the biggest issues with any claims of Cloud Computing being energy efficient, or Green, is the lack of transparency from the Cloud Computing providers. None Almost none of them are publishing any data around the energy consumption, or emissions of their Cloud infrastructure (article updated from “None of them” to “Almost none of them…” after comments from Memset and Greenqloud in the comments section below). Without data to back them up, any claims of Cloud computing being efficient are worthless.

Last week, while at the RackSpace EMEA Analyst day, we were given a potted history of OpenStack, RackSpace’s Cloud Computing platform. OpenStack was jointly developed by NASA and RackSpace and they open-sourced it with an Apache License in July 2010.

Anyone can download OpenStack and use it to create and host Cloud Computing solutions. Prominent OpenStack users include NASA, RackSpace (not surprisingly), AT&T, Deutsche Telecom, HP and IBM.

What has this got to do with Cloud Computing and energy efficiency I hear you ask?

Well, it occurred to me, during the analyst day, that because OpenStack is open source, anyone can fork it and write a version with built-in energy and emissions reporting. What would be really cool is, if this functionality, having been written, became a part of the core distribution – then anyone deploying OpenStack, would have this functionality by default.

And, OpenStack isn’t the only open source Cloud platform – there are two others that I’m aware of – Citrix’s CloudStack and Eucalyptus. Having the software written for one open-source platform, should allow reasonably easy porting to the other two.

Of course, with the software written as open-source, there could be constant improvement of it. And as part of one of the cloud platforms, it should achieve widespread distribution quickly.

Having energy and emissions information available, will also allow inefficiencies in Cloud infrastructure to be quickly identified and fixed.

So, the next step is to get someone to write the software – anyone up for it?

Or, what are the chances of getting someone like HP, IBM, RackSpace, or even NASA to sponsor a hackathon whose aim is to develop such software?

Photo Credit Jeremy Burgin

Efficiency and Ecological Responsibility of Cloud Computing (including water footprint)

A BrightTALK Channel

Unfortunately the provider for this webinar requires a login to listen to this discussion. If you don’t wish to register, my username is [email protected] and my password is 000000

Mark Thiele from Switch recently invited me to participate in a webinar he was moderating on the Efficiency and Ecological Responsibility of Cloud Computing which took place yesterday evening.

Also participating in the discussion were Harkeeret Singh (aka Harqs) Global Head of Energy & Sustainable IT at Thomson Reuters and Jason Hoffman CTO and Founder of Joyent.

The discussion started off asking whether or not cloud computing is efficient and the panel was fairly unanimous in deciding that cloud computing is not efficient. The main point I made here is that because cloud providers are not publishing energy information, it is not possible to say whether or not cloud computing is energy efficient.

At around 15 minutes into the conversation, we shifted on to asking whether or not cloud computing is green. There was a good discussion on this with the fact that efficiency not necessarily being green being one of the main points raised. Also brought up was how plummeting costs of cloud computing are leading to an explosion in consumption – in itself not very green. And as a counterpoint Harqs raised the fact that lower costs are beneficial to start-ups in developing countries.

Then 33 minutes into the conversation, we started discussing the impacts on water of cloud computing. One point I raised is that if you run a 25kW rack for one hour the water footprint from electricity productions is:

  • 0.1 litres if the electricity comes from wind
  • 2.5 litres if the electricity comes from solar
  • 45 litres if the electricity comes from coal and
  • 55 litres if the electricity comes from nuclear (and this doesn’t include the considerable water footprint of uranium mining).

Nuclear power plants use phenomenal amounts of water. From the Union of Concerned Scientists report [PDF] on this

the typical 1,000 Mwe nuclear power reactor with a 30oF ?T needs approximately 476,500 gallons per minute. If the temperature rise is limited to 20oF, the cooling water need rises to 714,750 gallons per minute. Some of the new nuclear reactors being considered are rated at 1,600 Mwe. Such a reactor, if built and operated, would need nearly 1,144,000 gallons per minute of once-through cooling for a 20 degree temperature rise.

Actual circulating water system flow rates in once-through cooling systems are 504,000 gpm at Millstone Unit 2 (CT); 918,000 gpm at Millstone Unit 3 (CT); 460,000 gpm at Oyster Creek (NJ); 311,000 at Pilgrim (MA); and 1,100,000 gpm at each of the twp Salem reactors (NJ).

And that level of water consumption has big biodiversity effects – imagine the large water intakes required for a nuclear plant taking in one million gallons of water per minute. These water intakes don’t just take in water, they also take in any life forms in that water. None of these life forms survive going through a nuclear power plant obviously. And then there’s the heat pollution effects from the warmer water coming from the power plant outlets.

Towards the end of the discussion Jason asked if making this data available to end users would be a clear differentiator for Joyent. I responded that it would be because a) there is a demand for this information and b) because having seen how Greenpeace successfully went after Facebook, (and in their latest report are now targeting Apple, Amazon and Microsoft) for their dis-regard for the footprint of their cloud computing infrastructure, nobody wants to be the next company in Greenpeace’s sights.

Harqs added that any company pursuing such a policy should open-source it so everyone could contribute to the development of constantly improving reporting standards.

The highlight of the webinar for me was at 47:30 when Jason committed to doing just that.

All in all a superb discussion with a fantastic outcome. I hope you enjoyed it as much as I did.

Is Cloud Computing Green?

I gave the keynote address at the Digital Trends 2011 event organised by HePIS and CEPIS in Athens recently. My talk was on Cloud Computing’s Green Potential and in my presentation, I claimed that Cloud Computing is NOT Green.

I started the talk by explaining what Cloud Computing is and the many advantages it can bring to companies. However, because none of the Cloud providers are publishing energy figures around Cloud computing, we can’t say whether or not Cloud computing is energy efficient.

I went on to point out that even if Cloud is energy efficient (and we have no proof that it is), that is not the same thing as being Green.

My slides are available on my SlideShare account and a transcript of my talk is here:

Okay, so my talk this morning is on Cloud Computing and its Green Potential. So a quick couple of words about myself.

So my name is Tom Raftery, I work for an industry analyst firm called RedMonk. My area of interest within RedMonk or the area I specialize in is energy and sustainability. We have termed the practice within RedMonk that concentrates on energy and sustainability GreenMonk. So the place that I blog at is at GreenMonk.net.

And a little bit about my past. I worked in an organization called Zenith Solutions back in the 90s and early 2000s, and Zenith Solutions was a software company creating what has now become termed cloud applications. At that time we called them web applications, they were web based software with the database backend online.

Then I worked for a company called Chip Electronics in the early 2000s and Chip Electronics was again a company which created Enterprise Resource Planning, ERP applications which were cloud delivered, at the time we called it Software as a Service. No at the time we called it active service provisions, since become Software as a Service. And I am also a co-founder and Director of CIX, which is a hyper energy efficient data center based in Cork in Ireland. So I know both from the hardware side and the software side.

I mentioned my blog on GreenMonk.net, I am on Twitter and twitter.com/tomraftery. My email address is there, my mobile phone number is there, please don?t ring it now. And this site here, slideshare.net the last line there and I am sorry for the bullet points, I don?t normally use them, but I did just here and in one other slide. slideshare.net is a site where you can upload a presentations.

So, this presentation I am giving this morning, I uploaded it to SlideShare earlier this morning, so it?s already online there at that site and if you go there now you?ll see it has already been viewed over 277 times so far. So, it?s a great site for getting your talks out all available, it?s also downloadable there.

One thing you?ll notice as well about the structure of my talks is a lot of them have images like this, but they also have this bit of text at the bottom which you can?t read, don?t try right now, but what they are is those are links to the source material. So, if at any point you do download the presentation you can go and click on the links, they are clickable links you can click on them and see where I?ve got the information from.

So that?s me, who are you guys?

A couple of questions, so how many people here have deployed applications to the cloud? Not very many. How many plan to? A few more, okay. How many people here think that cloud computing is green? Okay, good few people. Right. I hope to burst that bubble, unlike Nancy who spoke just a minute ago, I am not a, I am not a believer that cloud computing is green and I hope to explain why. I am a huge fan of cloud computing, I have to say, I use it extensively, going back to the slide for a second.

The Chip application, the Zenith stuff, the GreenMonk, Twitter, SlideShare even my email are all cloud delivered. Our organization RedMonk we use Google applications for domains for our email, so my email is cloud delivered as well. So I am a big user of and believer in cloud for lots of things. But I just don?t happen to believe it?s green.

So what is cloud computing? Well at kind of first blush it?s software that?s delivered in a browser, so that?s an very easy definition of it, something we can all kind of sign up to it. It?s a lot more complex than that at various other levels and I?ll go through a couple of those other levels as well, just very briefly to kind of give you that the kind of complexity that?s involved in it, but I am not going to go into any great depth. So it?s also nothing that?s very new, this is the original sign up screen for Hotmail.

Hotmail was an email application developed and sold to Microsoft back in ?97 for $450 million if memory serves. But this was before it was sold to Microsoft, this was the original sign up screen when they launched in July ?96 and it was one of the first widely used Software as a Service or cloud application.

So cloud is nothing new, it keeps getting rebranded, so the cloud name is newish alright, but the delivery mechanism is not that new. It actually harps back to mainframe computing back in the 60s.

So there are several types of cloud computing and the first type, the first level of cloud computing is kind of Software as a Service. That?s where you kind of take your packaged software and convert it into something as I mentioned already delivered in a browser. And I mean you probably are aware of these I mentioned Hotmail and its analogs the Google applications, there is also Zoho, there is social networking the Twitter that I mentioned, SlideShare all these kind of things, they are all Software as a Service.

So they are just basic applications that you access through a browser. But you can go back one level of abstraction from that to where you get to what?s called platform as a service. And don?t worry about these acronyms basically a lot of the times you don?t need to know this stuff, the platform as a service stuff is where you, as I could say, you go back one level of abstraction and you give people a platform on which to deploy cloud applications.

And the kind of platforms that you can get are ones like the Google app engine and Amazon and Microsoft?s Azure, these are the kind of platforms that are available if you want go down that route. Most people don?t need to go there, but if you do that kind of stuff is available as well. And then you can go back one further level of abstraction where you are actually delivering Hardware as a Service and this is called Hardware as a Service or Infrastructure as a Service and both names are valid, HaaS for hardware or IaaS for infrastructure as a service and that?s where you?re delivering stuff like networking, storage, compute, CPU cycles that kind of thing as a service.

And VMware, Rackspace, OpenStack again Amazon with their EC2 and their S3 services are those kinds of types of cloud computing. If that?s a little confusing and I know it can be, this is a slide which is also confusing, but if you actually stop and study it in your own time, you could download this application and if you are interested about it, this is a good way of seeing how the different types of cloud computing stack up as it were.

So over here on the very left, you have your traditional packaged software with the entire stack from networking up through applications where you manage the entire stack on your machine. So that?s the traditional Microsoft Office whatever applications, you do the whole thing.

Over on the other side you got your Software as a Service, something like Google apps or domains or one of these things where the provider the Google or whoever are responsible for the entire stack, all you have is a browser. And then in the middle you have the two other ones, the platform as a service, where the vendor managers up to here and you manage the applications and data or infrastructure where the vendor managers is just this part and you manage the rest.

So that?s the kind of way it stacks up. As I say on the deck itself there is a link down there to where you can find that image if you are interested in checking into it. It?s quite a nice way of seeing the differences between the different types of cloud computing.

And then just to complicate things a little further, there are different deployment mechanisms. You can have private cloud, private cloud is hosted by yourself on your own infrastructure behind your own firewall. You can have public cloud which is what most people are familiar with or you can have a hybrid where you have some stuff private, some stuff public and that?s one that a lot of people are looking at, because it means you can have your data behind your firewall, but the functionality you are accessing it from public. So your stuff remains on premise.

And that?s quite important, because as Nancy alluded to, there can be a lot of issues with the data in cloud computing, because for example if you are a European company do you really want your data hosted on servers in US territories where for example the data privacy laws are a lot more lax. So I have spoken to several European companies who have said categorically they will not use cloud computing if their data is going to be hosted in US territories. It?s only if it?s in the EU and only if they know where in the EU. So you are noticing cloud providers taking that on board and starting to become aware of those issues and while they can?t change US law, they can start providing storage mechanisms that they are guaranteed to be in region.

So that?s cloud computing and the next question we get to is, is this really energy efficient because lots of people say it is and even Nancy alluded to that report from the Carbon Disclosure Project which I?ll blow apart in a minute. They aren?t the only ones Microsoft, Accenture and WSP environment brought out this story in November of last year. And this is the actual title of the story, where they say it shows significant energy in carbon emissions reduction potential from cloud computing and again the link to the report is down there at the bottom.

The difficulties I have with that are several, first is Microsoft are a cloud computing provider so they kind of skin in the game. The second is that, they don?t actually use any hard data, it?s all imputed. And the third is that after months and months of work from all these people the best they could come up with is they could say it has potential. Yeah it has potential to end world hunger and bring on world peace and fix the euro, anything kind of potential. So that?s a non-report.

Cloud computing has phenomenal advantages, don?t get me wrong, I am a big fan. So if you are into traditional IT, you know well that if you are deploying a new application or a new server it?s pain staking, you have to go through an RFP process, a tender process, PO process. You have to put, you have to go to tender and you have to get that — when you have to place the order, the order then can take several weeks from the supplier. When it comes in, it goes into the logistics area, if you got to get the guys in warehousing to tell you where the server is, you have to get the server, you have got to put the company image on the server, you got to install the applications, you got to do testing, you got to patch the server, the list goes on and on. Basically you want to deploy a new server, it?s a process that can take weeks to months.

You deploy a cloud application, there is usually no RFP and no PO process because there is — the capital cost is minimal. So typically the time to deploy for a cloud application shrinks from weeks to months to hours to minutes depending on what you are deploying, so phenomenal, cloud is fantastic for streamlining that kind of stuff.

It?s also great for what?s called dynamic provisioning. So this is the Alexa graph, the website traffic of a website for the Australian Open. The Australian Open is a big tennis competition happens in Australia every January. So you?ll notice 11 months of the year no traffic to the site, come December, January vroom, spike, that?s 2006, 2007, larger spike 2008, larger spike and the spikes keep getting bigger as you go in that direction.

So if you were the website owner for the AustralianOpen.com website you would need to have — if there were no cloud computing options you would need to have servers that could hit and deal with the traffic at this growing spike for 12 months of the year when the traffic is only there one month of the year. But with dynamic provisioning and cloud computing you can use the elasticity of the cloud to turn up the resources assigned to that site as the traffic starts to build up in December and January and then as the traffic falls off, you turn it back down again.

So in that respect cloud computing is fantastic as well, you are not using resources needlessly. You?ve also got the idea of multi-tenancy and if you can?t see what?s in this picture it?s actually a Mini Cooper with 26 people inside in her, EMC sponsored it as the world record attempt to fit people into a Mini Cooper and they fit 26 people into it. So they stuff people into it with multi-tenancy in cloud computing it means you are sharing applications across companies, lots of different companies often competitors are using the same single version of the application.

And that?s fantastic, that adds greater value. You know, you have only one instance of the application which is great as well for updates, updates of the application are instantly deployed. You know, you don?t have to download the latest update and apply it to the test server and make sure it works in the environment, the whole thing, you know, it?s just instantly on.

This is the issue of server utilization which again Nancy referred to, Nancy you stole my talk, come on. So this is a typical graph of server utilization and you can see this the memory part, but this is the server utilization and it?s at zero percent here. And well that?s a bit of a outlier, you?ll often and get in normal server, you?ll often get utilizations in single digits 7, 8% server utilization for traditional servers in data center environments. But with the advent of virtualization and cloud computing you can ramp that up significantly. So that should be quite energy efficient.

Then you have got this kind of outlier thing called chasing the moon, which you may or may not have heard off. It?s one I am kind of found of as an idea, but not many people have deployed it yet. People are kind of talking about it as out there, and what it is, is with cloud computing if you?ve got data centers in say, US, West Coast, another in Northern Europe or Southern Europe, Northern European typically because it?s cooler there and cooler I mean colder not more ?hip?. And you?ve got another data center say somewhere in Asia or Eastern Russia. Then you?ve got the time zones covered about eight hours apart. So if you have an application in those three centers, you can move the compute to where energy is cheapest at any particular point in time. So if you are doing that typically energy is cheapest when it?s in highest supply, when it?s in highest supply and it?s cheapest, its actually, this is on the wholesale markets, it?s actually greenest as well.

So when electricity is at its cheapest, it?s actually also at its greenest that?s ? it?s kind of counter intuitive but I can explain that if any one who is interested later.

So if you move your compute to where the energy and the compute is cheapest at any point in time, it?s typically night time when wind is blowing and at that time you are chasing the moon, you are putting your applications wherever the moon is out, it?s called chasing the moon.

And so it?s something you could only do — something that?s only made possible by the likes of cloud computing. Your information is ubiquitous, it?s wherever you have an internet connection, so your road warriors, your sales people on the road, can access the application while sitting up in the beach.

It also enables a lot more home working, homeshoring, teleworking whatever you want to call it. And people like ATT, IBM, lots of big companies are huge fans of this. IBM reported a couple of years back that 25% of their employees did teleworking and those 25% were saving IBM $700 million a year. That?s significant savings and a lot of that savings comes from a lower real estate footprint and a lower energy footprint because of the lower real estate footprints.

So is it energy efficient or lot of those savings coming from less commuting or from less building stock or are they from offsetting your energy? So if you are working from home you are still burning energy, it?s just not in your company?s building, your company isn?t accounting for it anymore. These are kind of questions we are not sure of, there hasn?t been any definitive studies either way, and it?s difficult anyway because it differs in every company and every geography.

One huge problem I have with cloud computing and people saying that cloud computing is energy efficient is that none of the cloud providers are publishing data around their energy utilization, not one of them. So I often do a kind of a hands up exercise at this point and I don?t know if it?ll work here, because very few people admitted that they were going to be putting stuff in the cloud, but let?s raise hands again. Hands up everyone who has or plan to deploy applications to the cloud? Okay, so keep your hands up, keep your hands up. Now keep your hands up if you know the current energy utilization of the applications you are going to deploy to the cloud or the energy applications you have already deployed to the cloud, if you know how much energy your applications burn, keep your hands up. Okay we got one, anyone else just the one? Good. Okay, keep your hand up, we are not finished. Okay keep your hand up if you know the energy utilization of that application in the cloud. You do, is it a private cloud?

And they are giving you the energy utilization of that?

Okay, I am interested in that because I do a lot of work for SAP and they can never tell me the energy utilization of any of their cloud infrastructure.

I think, okay I must get back to you on that because I — if that is the case it must be very new, because it?s not something they?ve ever shown me before and if they do it it?s often kind of what we call humbligated it?s often — they will give you an average but they won?t tell you exactly what your application and what your users are utilizing which is what you need to know.

So as I say with the possible exception of SAP, most cloud providers do not provide the data. So without that data, we have no way of knowing if our applications are in fact energy efficient in the cloud. Even if they are, energy efficiency is not the same as being green. Just because something is energy efficient does not mean it?s green, and this is a very common mistake that people make.

So what is green? Well I’m also going to quote from the CDC report that Nancy mentioned. And this CDC report, it?s called Cloud Computing – The IT Solution for the 21st Century and again there is a link to it there.

One of the quotes that the CDC put into that was that that a typical food and beverage firm transitioning it?s HR application from dedicated IT to public cloud can reduce CO2 emissions by 30,000 metric tons over five years. That sounds good, I buy that, that sounds quite green actually. They also went on though in their executive summary to say allowing companies to maximize performance, drive down costs, reduce inefficiency, and minimize energy use and therefore carbon emissions. So they have made the classic fundamental mistake of thinking that reducing or making something energy efficient makes it green or reduces emissions. There is nothing that says that is the case. I will tell you why?

And by the way Nancy and this is the blog post I wrote on GreenMonk where I explain in significant detail why the CDC report is completely flawed. So there is a link there you can go and have a look.

I will give it to you later, I will give you the link later. So two reasons why that report is deeply flawed. One of them is it?s based on assumptions and they say so in their model, they say their model is based on assumptions and the second is based on metric called PUE. So I?ll get the PUE in a second. PUE is Power Usage Efficiency. Anyone here familiar with the term PUE? Couple are, okay. So I?ll get to in a second. They based their model on this PUE metric, which is a widely used metric. But they have based it on a average PUE across the entire United States which is put out by the EPA, so that?s not really very indicative firstly.

But secondly, PUE the measurement itself, it?s a ratio of the total amount of power used by data center compared to the power deliver to the computer equipment. So the total power delivered to a data center is the power delivered literally to the door of the data center, which goes to power of the lighting, it goes to power the cooling, it goes to power of the UPSs, the whole thing, that?s the total power. And it?s a ratio of that to the amount of power which actually makes to the IT equipment. So the closer your PUE figure is to 1.0, the better.

Now couple of problems with PUE as a metric. The first is there hasn?t traditionally been any standard about where you measure the power. It?s measured at the meter, the power meter, the electricity company power meter but in data centers that is often been measured on the high voltage site, the medium voltage site, or the low voltage site depending on the data center, depending on where they put the meter. And of course if you are measuring out at these different place one data center measures at one place, another at another place you can?t cross compare because you are leaving out the loses that occur in the conversion from high to medium to low voltage.

So right there the lack of standardization that?s been worked on at the moment, and it is getting better, they are start to standardize but traditionally it hasn?t been standardized. So that?s one issue straightaway.

But even more important is, quick look at this graph here, if I have a data center which takes in two megawatts of power and of those two megawatts of power, one megawatt goes to powering the servers, then I have a PUE of 2.0, very simple. However if I realize that my one megawatt isn?t being used very efficiently, and I realize that some of my servers are being under utilized, may be I?ll virtualize some of them and I shut some of them down. Then my power draw from my IT equipment drops to 0.75 a megawatt. My total draw drops to 1.74 and my PUE goes up to 2.33. Remember I said PUE closer to 1.0 means you are more efficient. I?ve actually made it more efficient and my PUE has gone from 2 to 2.3, so it?s a huge problem right there with the PUE metric.

Another issue and I am sorry this is a little bit complex, but I?ll walk it though it again another issue with PUE is it takes no account of carbon. So top line is a typical data center, typical data center in a European country, a European country where the supply of power causes CO2 per kWh that?s not unusual that?s a pretty average figure. So if that typical data center has a PUE of 1.5, just quiet good, then we get 1.5 by 0.5 we get 0.75 kg CO2 per kWh is the IT carbon intensity, is how much the IT equipment is producing in terms of CO2.

So if we have a data center with the a good PUE 1.2 and that good data center is drawing mostly from coal-fired power, so it?s got a supply carbon intensity of 0.8 kilos, the you are — 0.8 by 1.2 means you are producing — even though you have got a good PUE in your data center, you are producing 0.96 kilo CO2 per kWh.

On the other hand if you have got a really bad data center with a PUE of 3, very inefficient data center, PUE of 3 but is fired mostly by renewables. So your carbon intensity on your supply is 0.2, but still it?s not 0 it?s 0.2, it?s significant, there is still carbon being produced per kWh. 0.2 by 3 gives you 0.6, which is significantly less. It?s, you know, 60% of the carbon intensity of the data center with a PUE of 1.2.

So PUE is no indicator whatsoever of how green some thing is, it?s a very bad metric. There is other metric called a CUE the Carbon Usage Efficiency but it is not widely used by the industry unfortunately.

So given that, the report that the CDC produced could just as easily have said that your typical food and beverage firm transitioning HR to a dedicated public cloud could increase CO2 emissions by 30,000, just as valid. They pick the number out of the air and they base it on a flawed metric, so it?s just as valid to say it could increase CO2 as decreased CO2.

And a good example of this in fact is Facebook, Facebook build this lovely new data center in Prineville, Oregon, they opened it early this year. Had an unbelievable PUE coming in around 1.08, highly efficient, they have open sourced it. If you go to opencompute.org you can get the blueprints for building the data center and the list of suppliers, so you can go on build that same data center yourself. They reduced their energy consumption per unit of computing by 38%, that?s fantastic, that?s really good.

Unfortunately, their energy supplier is a company called PacifiCorp. PacifiCorp produces 58% of its power from coal, this is their website, they say it themselves right there. They produce 9.6 million tons of coal from their own mines every year. They also produce another 12% of their electricity from natural gas, so that?s 70% they produce from fossil fuels, plus they also buy 22.5% of their power from other suppliers. Now they don?t say how those other suppliers generate theirs. So they get at least 70 and possibly significantly more of their energy from fossil fuels. So right there Facebook?s really impressive 1.02, sorry 1.08 PUE is blown out of the water by the fact that it?s all produced using carbon or almost all.

To contrast that this is the graph of power production on the Spanish grid. I picked Spain because I happen to live there and you can see that this was taken last Friday, the snap shot and again you can get information from the Red El?ctrica de Espa?a. The red bar here, or bar whatever it is area is coal, comes in around 20%, green one here is wind, the other is, the rest of the renewables put together except water, which is down here.

So on the Spanish grid, carbon intensity comes in around 20% at the moment based on that plus the gases and other 15% sorry. And that?s actually bad compared to the same grid two years ago. The same grid two years ago, coal was coming in single digits here on 9% and the reasons gone from the 9% two years ago to 20% today is because Zapatero, the now former President of the parliament comes from Castile and Le?n which is a coal producing part of Spain and he went to the EU and he petitioned for years to be allowed to give subsidies to the coal miners and the coal production in that part of Spain. And last February, sorry February 2010 he succeeded and they got 4.5 billion Euro in subsidies for producing coal in Spain and that?s a direct result, it?s scandalous.

Anyway that?s either here or there let?s move on. Dublin, I am originally from Cork, so I?ll talk of Ireland for little bit. Dublin has become a European, key European datacenter hub. Most of the big data center providers have significant operations in Dublin. Microsoft have their largest datacenter outside of US in Dublin. It provides the Microsoft Live and Azure services for EMEA. Similarly Amazon are there, Google are there, they all have significant centers there and they are all expanding. Google have announced new expansion as of Microsoft representatives.

Unfortunately, Ireland produces 84% of its electricity from Fossil fuels, that number is falling as it rolls out wind, it was a 87% a couple of years ago, but now its 84%. So that?s not really very green. On the other hand Apple have announced their iCloud service and their iCloud service is currently housed in this datacenter in North Carolina, it?s a photograph of it under construction. Unfortunately this datacenter gets 78% of its energy from Duke Energy who get it from, no they get all of their energy from Duke Energy, Duke Energy get their energy from 78% coal and nuclear.

Coal is obviously really bad, nuclear is also really bad, not just because of the Fukushima reasons, but you got to think as well, nuclear power plants have an enormous water footprint. And that is, it can often be devastating to the environment around them. But Apple have said in fairness to them that they have got a 121 acres site behind them that they are now clearing for scrub to install a solar facility, it will mitigate a little their emissions, a 121 acre solar facility is not going to complete power the plant and it certainly won?t power at night time but it will have at least.

Google are the really interesting player in this field, because Google have gone to extreme lengths to get their carbon footprint down to zero. They have signed power purchase agreements with Wind farms. A power purchase agreement is where you sign on the dotted line with a wind farm or any one in this case it?s wind farms in Google?s case, you sign on the dotted line and you say, for the next X years and in Google?s case its next 20 Years I will take all of your power, all of it.

For wind farms that?s a huge win because that means they can go to investors and say, we?ve got checks rolling in from Google for the next 20 years guaranteed and here is the contract, do you want to invest in us now. So obviously it will help them get investment inward investment. It?s a great win for Google on two fronts, one is they?ve got guaranteed renewable energy and the second is they?ve got guaranteed pricing for their energy for the next 20 years. How many people can say they know what the price of their electricity is going to be in 20 years?

So they have done it in a number of wind farms, this one is in Iowa, 114 megawatts, this one is in Oklahoma, another 100 megawatts. And they?ve gone to incredible lengths and this is the slide I mentioned earlier with all the bullet points and I?m really sorry this slide is more bullet points than I normally have in entire talks. So there is nine bullet points in this but it gives you an idea of the investments that Google have made in renewable energy.

The Potter Drilling one is for geothermal, Makani Power is for high altitude wind power. Solar City, the Atlantic Wind connection, that?s a — I can?t remember how long it is, it?s a massive offshore wind farm off the east coast of the US and they?ve invested in the infrastructure of that, they own a percentage of the infrastructure in that, in total Google have invested $850 million on renewables. So if anyone could be slightly green I guess in cloud it would be Google.

Having said that though, there is lot of having said that in this presentation I am sorry about that, it?s a complex area. Jevons paradox, William Stanley Jevons is an economist in the 19th century in England. And he realized that as steam engines were being made more efficient in burning coal, as they were getting more efficient at burning coal the amount of coal being burnt was actually going up not down. It was kind of counter intuitive but how it worked was as stream engines become more efficient the price dropped, more people bought them, more coal was burnt. And it?s similar with cloud computing. As cloud computing goes and starts taking off in adoption the resources that are used actually go up not down.

So cloud computing leads to an increase in consumption and this also then Parkinson?s Law and a curare of Parkinson?s Law which says data expands to fill the space available for storage, the more storage you have the quicker it fills up, you all know that. And a good example of that is when Gmail started in 2004 Hotmail had a 2 meg limit on the size of your inbox. Yahoo at 4 meg and gmail said, I am offering one gigabyte, blew them out of the water and suddenly they had catch up and go to one gigabyte, Google is now at 7.5 giga byte and they allow you to send emails of 25 megabyte, single email 25 megabytes.

So, also a nice quote I got from Infochimps? Flip Kromer and this really characterizes how cloud computing can promote consumption. And Flip said it very well when he said, EC2, which is one of Amazon?s offerings in cloud means anyone with a $10 bill can rent a 10 machine cluster with a terabyte of distributed storage for eight hours and because it costs virtually nothing to do it and because anyone can do it — it happens all the time. So that?s not very green.

You?re confused yet? So what if ultimate irony you had cloud delivered green software, Hara, Nootrol, SAP?s Carbon Impact OnDemand, these are all carbon management applications which are cloud delivered. Now, I am really confused I don?t know if they are green or not. Microsoft Iron Earth, cloud delivered using the Azure platform for managing air quality, water quality, noise pollution, that kind of thing, I think my head just exploded.

So my conclusion from all this is that cloud computing has a significant number of advantages, but being green isn?t one of them. One last thing if you are deploying stuff to the cloud, this is not really how you want to do it. Thanks very much.