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Data Center War Stories talks to SAP’s Jürgen Burkhardt

And we’re back this week with the second instalment in our Data Center War Stories series (sponsored by Sentilla).

This second episode in the series is with Jürgen Burkhardt, Senior Director of Data Center Operations, at SAP‘s HQ in Walldorf, Germany. I love his reference to “the purple server” (watch the video, or see the transcript below!).

Here’s a transcript of our conversation:

Tom Raftery: Hi everyone welcome to GreenMonk TV. Today we are doing a special series called the DataCenter War Stories. This series is sponsored Sentilla and with me today I have Jürgen Burkhardt. Jürgen if I remember correctly your title is Director of DataCenter Operations for SAP is that correct?

Jürgen Burkhardt: Close. Since I am 45, I am Senior Director of DataCenter Operations yes.

Tom Raftery: So Jürgen can you give us some kind of size of the scale and function of your DataCenter?

Jürgen Burkhardt: All together we have nearly 10,000 square meters raised floor. We are running 18,000 physical servers and now more than 25,000 virtual servers out of this location. The main purpose is first of all to run the production systems of SAP. The usual stuff FI, BW, CRM et cetera, they are all support systems, so if you have ABAP on to the SAP in marketplace, you, our service marketplace, this system is running here in Waldorf Rot, whatever you see from sap.com is running here to a main extent. We are running the majority of all development systems here and all training — the majority of demo and consulting system worldwide at SAP.

We have more than 20 megawatt of computing power here. I mentioned the 10,000 square meters raised floor. We have 15 — more than 15 petabyte of usable central storage, back up volume of 350 terabyte a day and more than 13,000 terabyte in our back up library.

Tom Raftery: Can you tell me what are the top issues you come across day to day in running your DataCenter, what are the big ticket items?

Jürgen Burkhardt: So one of the biggest problems we clearly have is the topic of asset management and the whole logistic process. If you have so many new servers coming in, you clearly need very, very sophisticated process, which allows you to find what we call the Purple Server, where is it, where is the special server? What kind of — what it is used for? Who owns it? How long is it already used? Do we still need it and all that kind of questions is very important for us.

And this is also very important from an infrastructure perspective, so we have so many stuff out there, if we start moving servers between locations or if we try to consolidate racks, server rooms and whatsoever, it’s absolutely required for us to know exactly where something is, who owns it, what it is used for etcetera, etcetera. And this is really one of our major challenges we have currently.

Tom Raftery: Are there any particular stories that come to mind, things issues that you’ve hit on and you’ve had to scratch your head and you’ve resolved them, that you want to talk about?

Jürgen Burkhardt: I think most people have a problem with their cooling capacity. Even if we are — we are running a very big data center. We have a long capacity down the other side. There was room for improvement. So what we did is we implemented a cool aisle containment system by ourselves.

So there are solutions available, you can purchase from various companies. So what we did is, so first of all we measured our power and cooling capacity and consumption in very detail, and on basis of that we figured out a concept to do that by ourselves.

So the first important thing is today I think it’s standard. We have to change our requisitions, especially in the DataCenter which is ten years old, and which now also got the premium certificate. That data center, the rack positions were back front, back front, back front and we had thousands of servers in that data center.

So what we are now doing, already did to some extent in that data center is, we had to change the rack positions front, front to implement the cold aisle containment system. And we did — so IT did that together with facility management. So we had a big project running to move surplus shutdown, racks, turn whole — the racks in whole rows, front to front and then built together with some external companies, it was very, very normal easy method. Buying stock in the next super market more or less, build the containment systems and that increased where we have implemented it the cooling capacity by 20%.

Tom Raftery: Is there anything else you want to mention?

Jürgen Burkhardt: Within the last three to four years we crashed against every limit you can imagine from the various type of devices which are on the — available on the market, because of our growth in size. The main driver for our virtualization strategy is the low utilization of our development and training servers. So what we are currently implementing is more or less a corporate cloud.

When a few years ago, we had some cost saving measures, our board said, you know what, we have a nice idea, we shutdown everything, which has a utilization below 5% and we said well, that might not be a good idea, because in that case we have to shutdown everything, more or less. And the reason if you imagine a server and an SAP running, system running on it and a database for development purpose, maybe a few developers are logging in, this is from a CPU utilization, you hardly see it, you understand.
So the normal consumption of the database and the system itself are creating most of the load and the little bit development of the developers is really not worth mentioning. And even if they are sometimes running some test cases, it’s not really a lot. The same is true for training, during the training sessions there is a high load on the systems.

But on the other side these systems are utilized maybe 15% or 20% maximum, because the training starts on Monday, stops at — from 9:00 to 5:00. Some trainings even go only two or three days. So there is a very low utilization. And that was the main reason for us to say, we need virtualization, we need desperately and we achieved a lot of savings with that now and currently we are already live with our corporate cloud.

And we are now migrating more and more of our virtual systems and also the physical systems which are now migrated to virtualization into the corporate cloud. With a fully automated self service system and a lot of functionality which allows us to park systems, unpark systems, create masters and also the customers by himself. This is very interesting and this really gives us savings in the area of 50% to 60%.

Tom Raftery: Okay Jürgen that’s been fantastic, thanks a million for coming on the show.

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HP joins ranks of microserver providers with Redstone

Redstone server platform

The machine in the photo above is HP’s newly announced Redstone server development platform.

Capable of fitting 288 servers into a 4U rack enclosure, it packs a lot of punch into a small space. The servers are System on a Chip based on Calxeda ARM processors but according to HP, future versions will include “Intel? Atom?-based processors as well as others”

These are not the kind of servers you deploy to host your blog and a couple of photos. No, these are the kinds of servers deployed by the literal shedload by hosting companies, or cloud companies to get the maximum performance for the minimum energy hit. This has very little to do with these companies developing a sudden green conscience, rather it is the rising energy costs of running server infrastructure that is the primary motivator here.

This announcement is part of a larger move by HP (called Project Moonshot), designed to advance HP’s position in the burgeoning low-energy server marketplace.

Nor is this anything very new or unique to HP. Dell have been producing microservers for over three years now. In June and July of this year (2011) they launched the 3rd generations of their AMD and Intel based PowerEdge microservers respectively.

And it’s not just Dell, Seamicro has been producing Atom-based microservers for several years now. Their latest server, the SM10000-64 contains 384 processors per system in a 10U chassis with a very low energy footprint.

And back in April of this year Facebook announced its Open Compute initiative to open-source the development of vanity free, low cost compute nodes (servers). These are based on Intel and AMD motherboards but don’t be surprised if there is a shift to Atom in Open Compute soon enough.

This move towards the use of more energy efficient server chips, along with the sharing of server resources (storage, networking, management, power and cooling) across potentially thousands of servers is a significant shift away from the traditional server architecture.

It will fundamentally change the cost of deploying and operating large cloud infrastructures. It will also drastically increase the compute resources available online but the one thing it won’t do, as we know from Jevons’ Paradox, is it won’t reduce the amount of energy used in IT. Paradoxically, it may even increase it!

Photo credit HP

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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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Implications of the data explosion for utilities

At the recent SAP for Utilities event in San Antonio, I caught up with Martin Mysyk, Senior Architect for TransAlta and we discussed the implications for utilities of the massive data explosion that is occurring in their industry right now.

Here is a transcription of our conversation:

Tom Raftery: Hi everyone! Welcome to GreenMonk TV. I?m at the SAP for Utilities event in San Antonio, Texas, and with me I have Martin Mysyk, who is the Enterprise Architect for TransAlta.

Martin, we?ve been talking about the amount of data utility companies you?re going to be dealing with and the mountain? I heard a talk earlier this year in Orlando, where one of the utility companies was talking about the change in meter reads from 75 million a year to 120 billion.

Now, there is also the other side away from smart meters and into just the devices on the grid itself and the amount of information they will be sending back to utility companies, what are they going to do with all this information and how are they going to handle it?

Martin Mysyk: Well, I think we do have to look at new ways of handling that amount of data, how we?re going to store it, how we?re going to back it up. And we?re monitoring so many more data points as we move from an analog world to a digital world. There?s an acceleration of the amount of data points where some of our assets may have had a couple of thousand data points we?re monitoring, taking in.

Some of our newer instrumentation generates 20,000 data points that we can monitor. So, that?s a large amount of — big influx of data that we have to — you want to keep it real time and that takes new techniques, new technology that we have to look at to be able to keep that on track and to be able to extract the information out that we need.

Tom Raftery: Okay, but 20,000 data points, is that too much? I mean, how can utility companies make any sense of that amount of data?

Martin Mysyk: That?s where you need another level of intelligence to layer on top of what you?re retrieving out of there, because you really — you can?t read that from a human perspective, you need software that looks for exceptions or things that are out of range to deal with those because whenever things are operating properly you don?t care about it. It?s just when there are exceptions or something?s going to impact your production capability that you want to know about that.

Tom Raftery: At the backend you?re going to need bigger servers, you?re going to need bigger failover facilities and all that?

Martin Mysyk: Yes, and the network ties it all together. So, wherever that is stored only high-speed networks have a lot of band with to carry the data, whether its onsite or everyone talks about being in the cloud. If you put it in the cloud, you are going to need lots of pipes to get it there.

Tom Raftery: This sounds like a lot of investment for utility companies, is it worth it?

Martin Mysyk: I think so, because we have to be aggressive on how we manage our data and our decision making capability needs to accelerate, because when we move into a more comparative global marketplace you have to have that decision making power and to do that you need the — to make information out of your data and that is only going to accelerate as time goes on.

Tom Raftery: Cool. Great. Martin, thanks a million.

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Big emphasis on mobility at the SAP for Utilities conference

SAP for Utilities

I attended the SAP for Utilities conference in San Antonio last week. I gave the closing keynote (which I’ll write-up in another post).

I was interested though by the fact that two themes recurred in all the opening keynotes.
1. All of the opening keynoters made mention of Social Media – this was a huge relief because my closing talk was due to be on Social Media, so the speakers were setting the stage nicely! And
2. Mobility was talked up big-time by the speakers

I had expected some talk of mobility, along with HANA, Smart Grids Cloud and Analytics – the usual gamut of topics at these events and they were indeed all addressed, but there was a definite emphasis on mobility over all other topics.

It is understandable – with the advent of tablets and smartphones, computing is going mobile, no question about it. I think it was Cisco’s CTO Paul De Martini who dropped the stat that 200,000 new android devices are being activated daily.

This impacts utility companies on two fronts:
1. On the customer front, utilities can now drop the idea of in-home energy management devices and, instead, assume the vast majority of their customers has access to a smartphone or tablet and
2. On the employee front, utilities have lots of mobile workers – the ability to connect them easily back into corporate applications will be game changing.

In my talk on social media strategies for utilities – I suggested that utilities equip every truck-roll with a smartphone. That way, when they get to site to repair a downed line (or whatever), they can take a quick video of the damage, the people working on-site, and in the voice-over give a rough estimated time of recovery. This can be uploaded to YouTube at the touch of a button on the phone and so, call center operators, and social media departments can direct enquiries to the video – immediately helping diffuse the frustration of having power cut.

Programs like this can even be pro-active and the customer service benefits of rolling this out should not be under-estimated.

Utilities are entering a new, more challenging era. Mobility solutions (especially when combined with social media) will be a powerful tool to help them meet these challenges.

Full disclosure – SAP is a GreenMonk client and paid travel and expenses for me to attend the conference.

Photo credit Tom Raftery

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Smarter cities – cities of almost any size can now go digital, with all the efficiency gains that brings

City

I attended an IBM Smarter Cities analyst event last week, and it was, not surprisingly, very interesting.

What is the whole rationale behind making cities smarter?

Well, there are a number of factors. For one, the world’s population has doubled in the last 40 years (from 3.5 billion to almost 7 billion). And with the mushrooming population, there is also an increase in urbanisation (in 1800, 3% of the world’s population lived in cities, whereas in 2007 that figured went above 50% for the first time).

The surging numbers of people living in cities are increasing demands on municipalities for services like water, energy, transportation, housing, healthcare and public safety. This is happening at a time of constrained resources and ageing infrastructures for many existing cities.

At the IBM Smarter Cities event, IBM showcased both some of the technologies they are providing to cities and also case studies of some of the solutions they have rolled out.

Intelligent Operations Center

The core of IBM’s offerings is its Intelligent Operations Center (IOC) – this is a application capable of taking information from virtually any IT system a city may have (water management, video surveillance, first responder systems, traffic management, etc.), combining this data and using it to kick off workflows, to trigger alerts, to display on dashboards and/or for data export.

The fact that the system can take in inputs from such a wide variety of systems is, in large part due to its use of the Common Alerting Protocol (CAP) – an XML-based protocol for exchanging alerts between systems. From the CAP Wikipedia entry:

Alerts from the United States Geological Survey, the Department of Homeland Security, NOAA and the California Office of Emergency Services can all be received in the same format, by the same application. That application can, for example, sound different alarms based on the information received.

The IOC’s flexibility when it comes to data inputs ensures it can take in information from almost any IT system – it can also output that same data to other systems or run data through rules engines to kick off workflows. This means the IOC has huge potential as a way to take in information from many disparate sources, have it acted on, and display results in realtime to the responsible city officials.

However, it is those same city officials who may be biggest barrier to the success of the IOC. To get the most from the IOC, it needs access to the relevant data, but that requires the buy-in of the data owners. Most city administrations are based around silos and the people responsible for managing those silos may be inclined to view the data as their own fiefdom. Data sharing cultures will need to be far more widely accepted in city government for the IOC to reach its full potential.

The Smarter Cities sales cycle must be fascinating and likely involves more change management skills than sales ones.

One of the initial customers for IBM’s Smarter Cities solutions was Rio de Janeiro but there was a burning platform there. Rio is hosting the 2016 Summer Olympics and the 2014 World Cup so it needed to ensure it had all its systems in tip-top shape. Other cities have signed up for partial roll-outs (Washington DC and the Sonoma County Water Authority for water management, Richmond Va., and New York for crime reduction and Bolzano Italy for management of the elderly, to name a few). In their cases, increasing sales will be very much a matter of up-selling additional efficiency services.

One of the intriguing aspects of the IBM Smarter Cities solution is that there is a cloud delivered version. This lack of a requirement for a hardware installation can drastically cut costs, the time to roll-out and the IT administrative burden (backups, disaster recovery and availability) making it an ideal solution for smaller urban areas which couldn’t previously have considered such an option.

For the first time, cities of almost any size can now go digital, with all the efficiency gains that brings.

Photo credit Nrbelex

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Friday Green Numbers round-up for July 8th 2011

Green Numbers

With the summer slowdown in travel, I’m re-instating the Friday Green Numbers Round-up – and so without further ado…

  1. Whitehall surpasses 10% CO2 reduction target

    Whitehall has surpassed its target of slashing its CO2 emissions by ten percent in one year, achieving a cut of almost 14 percent.

    Prime minister David Cameron said central government emissions have fallen by 13.8 percent in the past year, reducing energy bills by an estimated ?13 million.

    Topping the table was the Department for Education, which achieved a 21.5 percent cut, while the… Read on

  2. Britain’s richest man to build giant Arctic iron ore mine 300 miles inside Arctic Circle

    Lakshmi Mittal’s ‘mega-mine’ is believed to be the largest mineral extraction project in the region but threatens unique wildlife

    Britain’s richest man is planning a giant new opencast mine 300 miles inside the Arctic Circle in a bid to extract a potential $23bn (?14bn) worth of iron ore.

    The “mega-mine” ? which includes a 150km railway line and two new ports ? is believed to be the largest mineral extraction project in the Arctic and highlights the huge… Read on

  3. Amazon Resists Pressure To Disclose Data On Carbon Footprint

    Amazon revolutionized the retail industry in the United States, and for several years has had a strong presence in Europe and Asia. Its market cap among retailers lags only behind Walmart.

    Despite its successes, the e-commerce giant has attracted criticism for a perceived lack of transparency of its carbon footprint…. Read on

  4. Facebook in the top 10 most hated companies in America

    Business Insider posted an article titled ?The 19 Most Hated Companies In America.? The data was based on the American Customer Satisfaction Index (ACSI), which releases industry results monthly and updates its national index quarterly.

    Facebook was placed at number 10. I decided to take a look at just the 2010 data, which is the latest available if you want to see ratings from all the companies in the US…. Read on

  5. 7 ways cloud computing could be even greener

    Forrester Research is the latest organization to explore the link between cloud computing and green IT.

    Forrester notes that by its nature, cloud computing is more efficient. But here are seven ways that an IT professional can make his or her cloud computing even greener ? regardless of whether or not the approach is public or private:…. Read on

  6. E-On investing $600 million in Illinois wind farms

    Northwest of Kokomo, along U.S. 24 near the Indiana-Illinois state line, the horizon is broken by the sight of dozens of wind turbines slowly turning in the breeze.

    There, in the small town of Watseka, Ill., E-On Climate & Renewables is putting the finishing touches on the Settler’s Trail Wind Farm, and the company soon will start work on the Pioneer Trail Wind Farm in a neighboring portion of Iroquois County.

    E-On also plans to construct a major wind farm across parts of Howard, Tipton, Grant and Madison counties.

    Construction on Phase 1 of the Wildcat Wind Farm is…. Read on

  7. UK’s two biggest solar installations start generating energy

    A huge solar farm in Lincolnshire and another in Cornwall started generating green electricity on Thursday to become the UK’s two biggest solar installations, as developers rushed to beat an imminent cut in government subsidies.

    The 1MW Fen Farm solar park and the 1.4MW Wheal Jane park in Truro are two of several such large-scale projects rushing to connect to the grid. They are trying to benefit from a…. Read on

  8. Missing: 163 Million Women

    AMidway through his career, Christophe Guilmoto stopped counting babies and started counting boys. A French demographer with a mathematician’s love of numbers and an anthropologist’s obsession with detail, he had attended graduate school in Paris in the 1980s, when babies had been the thing.

    He did his dissertation research in Tamil Nadu.

    As it turned out, Tamil Nadu was in fact one of the states where girls had a better prospect of survival, while in 2001 the northwest, a wealthy region considered India’s breadbasket, reported a regional sex ratio at birth of 126?that is, 126 boys for every 100 girls. (The natural human sex ratio at birth is 105 boys for every 100 girls.) The cause for this gap, Guilmoto quickly learned, was that pregnant women were taking advantage of a cheap and pervasive sex determination tool?ultrasound?and aborting if the fetus turned out to be female… Read on

Photo credit Tom Raftery

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Smart Grids for Europe white paper presented by SAP to EU Energy Commissioner

12036 NM Smart Grids for Europe En

SAP recently presented a white paper entitled Smart Grids for Europe – Benefits, Challenges and Best Practices to EU commissioner G?nter Oettinger.

The paper makes the case that there are few (i.e. no) ICT transformations that are as promising as Smart Grids in meeting Europe’s urgent energy challenges. The paper also makes a compelling case for Europe to leverage its continental scale and develop a single market Smart Grid. In such a market, on cloudy days, excess electricity generated from wind and wave energy in Ireland and Spain, could be sold into the German market if solar farms, for example were under-producing! Wind is a notoriously variable supplier, but given a large enough grid, it becomes quite stable (the wind is always blowing somewhere!).

The paper identifies the challenges facing the European energy sector currently –

  • Growing demand and rising prices
  • Ageing infrastructure – the electric utility infrastructure in most of Europe is between 60 and 80 years old
  • Climate change and sustainability – 20% reduction in GHG by 2020
  • Energy efficiency – the EU has a 20% energy efficiency target
  • Energy market liberalisation – both generators and consumers now have the right to transact business across internal EU borders
  • Security of supply – reduction of imports and esp fossil fuels

The paper went on to outline the advantages to Europe of smart grids – benefits for both the consumer (residential as well as industrial) and for the retailers and generators. Further benefits come from helping Europe meet its GHG reduction targets by facilitating greater penetration of renewables onto the grid and from making Europe more competitive in world Smart Grid markets.

The current state of Smart Grid deployments in Europe is, however, at best, early stage. The existing efforts are largely national with little coordination among them.

The white paper recommends developing an EU legislative Framework for Smart Grids – complete with proposed milestones. It further recommends incentives for investments in Smart Grids, common European standards for Smart Grids, ensuring privacy, security and trust in Smart Grids and consumer awareness campaigns, amongst other suggestions.

This paper is well worth a read, whether you are EU-based or not, if you have any interest in our future energy roadmap.

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Have HP’s senior executives lost interest in Sustainability?

Bottled water at the HP Summit

I attended a HP analyst summit last week in San Francisco and I have been putting off writing down my impressions of the event because I was, frankly, very disappointed.

Writing recently about HP’s announcement of their new Energy and Sustainability Solution, I noted that HP’s new CEO L?o Apotheker’s legacy from his time at SAP, is SAP?s deep commitment to sustainability. And I went on to speculate that it looks like he is bringing his sustainability stamp to HP as well. Sadly, I set myself up for a bit of a fall!

Jeff Katzenberg speaking at the HP Summit

Jeff Katzenberg - HP Summit

The first day of the two day event was a series of talks from HP execs, starting, after the introduction, with L?o’s Keynote. After that there was a series of exec talks on Cloud, Connectivity, Digitization and Security followed by guest speaker Jeffrey Katzenberg, CEO of DreamWorks over lunch. During this he screened the trailer for Kung Fu Panda 2, which looked great!

In the afternoon there were talks on HP Services, Go To Market and HP Labs followed by a brief break and then back for a Q&A with L?o and the rest of the execs.

I waited the entire day and the first mention of the word Sustainability was by Prith Banarjee, director of HP Labs in the final session where he made a brief reference to it. The funny thing was that that was when Prith became most passionate and enthusiastic!

Earlier in the day, in the talk on digitization, Vyomesh Joshi (aka VJ) did mention that 200bn pages are going digital annually but he then ruined it by talking about one HP printing station which is printing 80m pages a month (that’s a lot of dead trees!) but worse was when he went on to gleefully talk about how many “gallons of ink” that requires. And, in fairness to her, Ann Livermore did mention energy efficiency when discussing servers and data centers but it was a very brief mention, when so much more could have been said. However, the fact that during a full day of senior executive presentations, from one of the largest technology companies in the world, only one exec made any passing reference to sustainability was, to me a huge let down.

HP do have some good sustainability stories to tell – for instance, the fact that over the last five years HP managed to reduce the energy its products need to operate by 50%. Also, there is the previously mentioned HP Energy and Sustainability Management solution and then there is HP’s recycling efforts when it comes to its ink jet cartridges (HP recently announced that it has made more than 1 billion ink cartridges from recycled plastic) – the fact that ink cartridges are themselves totally unsustainable, is a whole other discussion.

HP TouchPad

HP TouchPad

HP are in a funny position. They are ostensibly a printing company and now with the acquisition of Palm, they are set to become a devices company too (Smartphones and Tablets using Web OS). Neither of these businesses is particularly environmentally friendly and yet HP’s founders spoke of [PDF] HP’s commitment to the environment as far back as 1957 in HP’s first statement of corporate objectives, The HP Way.

I’m not sure why HP executives shied away from talking about sustainability at the HP Summit but for anyone attending the event, the lack of any mention of Sustainability was a surprise. Does it demonstrate a lack of commitment from HP executives to Sustainability, or does it signal that HP are abandoning their previous role as good corporate citizens? I don’t think either of those is the reason why but until I start to hear HP’s senior management talking about sustainability, I will have my doubts as to how seriously they now view it.

By the way, the photo at the top of this article was the table of bottled water at the Environment, Energy and Sustainability session on day two of the Summit!

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Photo credits Tom Raftery

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Are SAP execs really committed to Sustainability?

SAP Co-CEO Jim Hagemann Snabe

I attended SAP’s 2010 Influencer Summit last week in Santa Clara and was quite impressed by the quality (though not necessarily the quantity) of the Sustainability-related information which was imparted there.

The event got off to a very good start when the company’s co-CEO, Jim Hagemann Snabe, addressed the event remotely from Germany instead of flying in. Now, while this was not specifically for sustainability-related reasons, it does clearly demonstrate that physical presence is not a necessity in addressing conferences. Even more heartening was to hear Jim referring to Sustainability themes in his keynote (I attended a Symantec event a few weeks back where the CEO and business unit leads made no mention of Sustainability, at all!).

However, following Jim’s talk, the execs who spoke after him made no reference, at all to Sustainability which was a big missed opportunity. SAP’s Rainer Zinow, for example, mentioned that the new version of SAP’s Netweaver product had been optimised for cloud and for multi-core architectures. When I asked him subsequently if it were also more energy efficient, he said “Absolutely” and offered to get me the info. This fact was confirmed to me the following day by Peter Graf in an energy efficiency event I attended.

Why wasn’t it part of the talk though – even if only a throwaway comment?

Scott Bolick at the 2010 SAP Influencer Summit

Scott Bolick at the 2010 SAP Influencer Summit

In fairness to SAP, there was a full Sustainability track the first afternoon with talks from SAP’s Peter Graf, Scott Bolick, Jeremiah Stone and Sami Muneer amongst others but how hard would it have been for the likes of Vishal Sikka, Sanjay Poonen or Raj Nathan, all of whom spoke after Jim Hagemann Snabe, to even throw in a sop to Sustainability in their presentations, even if only to keep the thought alive until the afternoon track.

The fact that the only senior manager to address sustainability was Jim Hagemann Snabe (with the exception of the Sustainability team, obviously), could lead one to wonder if Jim is alone in SAP in his commitment to Sustainability.

Having talked to many of the SAP execs about Sustainability over the years, I know this is not the case. But others present who haven’t had those conversations might now be wondering.