the climate case for cloud computing

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The Climate Case for Cloud Computing IT Professionals Peter Coffee, salesforce.com Jonathan Koomey, Ph.D., Stanford University Ian Gotts, Nimbus Partners Rebecca Wettemann, Nucleus Research Simon Wheeldon, CloudApps Carbon

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Cost savings, flexibility, and increased mobility aren't the only cloud computing benefits getting the attention of CIOs these days. The energy and emissions savings associated with cloud computing is also a factor for companies that realize the inevitable business implications of climate change. A recent study found that cloud computing uses 90% less energy than traditional on-premises applications. And if all enterprise software moved to the cloud, the environmental benefits would be staggering. Join us in a deep dive on this topic with a customer, a cloud expert, an analyst, and a cloud app developer. You'll leave with a greater understanding of how and why cloud computing is an important part of your sustainability strategy.

TRANSCRIPT

Page 1: The Climate Case for Cloud Computing

The Climate Case for Cloud ComputingIT Professionals

Peter Coffee, salesforce.comJonathan Koomey, Ph.D., Stanford UniversityIan Gotts, Nimbus PartnersRebecca Wettemann, Nucleus ResearchSimon Wheeldon, CloudApps Carbon

Page 2: The Climate Case for Cloud Computing

Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of intellectual property and other litigation, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year ended January 31, 2010. This documents and others are available on the SEC Filings section of the Investor Information section of our Web site.

Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Page 3: The Climate Case for Cloud Computing

What We’d Like to Share

Multi-tenant efficiency applies to all resources

– Cuts power in and CO2 out

– Impact could soon be a single-digit % of world total

Mandates are present reality and future certainty– Global carbon market already exceeds $140 billion

– EU = 64% of volume, but U.S. EPA now says CO2 is a pollutant

Cloud architectures enable optimizations– Diverse energy sources

– Ease of revising choices

A strong sustainability story is good business

Page 4: The Climate Case for Cloud Computing

Jonathan Koomey, Ph.D. - Consulting ProfessorStanford University

Ian Gotts - Founder and CEO

Rebecca Wettemann - Founding Partner, VP/Research

Peter Coffee

Head of Platform Research

salesforce.com

Moderator:

Nimbus Partners

Nucleus Research

Simon Wheeldon - Co-founder and CEOCloudApps Carbon

Page 5: The Climate Case for Cloud Computing

Jonathan Koomey, Ph.D.

Stanford University

Page 6: The Climate Case for Cloud Computing

Economic Advantages of Cloud Computing

My claim: Powerful economic trends (driven by energy

efficiency) will push users toward cloud computing

Four energy-related advantages of the cloud– Diversity

– Economies of scale

– Flexibility

– Making structural changes easy

Important issues still to work out on privacy, security,

contracts, other complexities

Big picture: Moving bits better than moving atoms

Page 7: The Climate Case for Cloud Computing

Key Web Sites

EPA on data centers + 2007 Report to Congress

http://www.energystar.gov/datacenters

LBNL on data centers:

http://hightech.lbl.gov/datacenters.html

The Green Grid: http://www.thegreengrid.org/

The Uptime Institute: http://www.uptimeinstitute.org

SPEC power: http://www.spec.org/power_ssj2008/

Page 8: The Climate Case for Cloud Computing

References

Baliga, Jayant, Robert W. A. Ayre, Kerry Hinton, and Rodney S. Tucker. 2010. "Green Cloud Computing:  Balancing Energy in Processing, Storage and Transport."  In Press at the Proceedings of the IEEE.  <http://people.eng.unimelb.edu.au/rtucker/publications/files/Baliga_Ayre_Hinton_Tucker_JRLStrTrans.pdf>

Koomey, Jonathan. 2007a. Estimating regional power consumption by servers: A technical note. Oakland, CA: Analytics Press. December 5. <http://www.amd.com/koomey>

Koomey, Jonathan. 2007b. Estimating total power consumption by servers in the U.S. and the world. Oakland, CA: Analytics Press. February 15. <http://enterprise.amd.com/us-en/AMD-Business/Technology-Home/Power-Management.aspx>

Koomey, Jonathan, Kenneth G. Brill, W. Pitt Turner, John R. Stanley, and Bruce Taylor. 2007. A simple model for determining true total cost of ownership for data centers. Santa Fe, NM: The Uptime Institute. September. <http://www.uptimeinstitute.org/>

Koomey, Jonathan. 2008. "Worldwide electricity used in data centers." Environmental Research Letters. vol. 3, no. 034008. September 23. <http://stacks.iop.org/1748-9326/3/034008>.

Page 9: The Climate Case for Cloud Computing

References (Continued) Koomey, Jonathan G., Christian Belady, Michael Patterson, Anthony Santos, and Klaus-

Dieter Lange. 2009a. Assessing trends over time in performance, costs, and energy use

for servers. Oakland, CA: Analytics Press.  August 17.

<http://www.intel.com/pressroom/kits/ecotech>

Koomey, Jonathan G., Stephen Berard, Marla Sanchez, and Henry Wong. 2009b.

Assessing trends in the electrical efficiency of computation over time. Oakland, CA:

Analytics Press.  August 17. <http://www.intel.com/pressroom/kits/ecotech>

Stanley, John, and Jonathan Koomey. 2009. The Science of Measurement: Improving

Data Center Performance with Continuous Monitoring and Measurement of Site

Infrastructure. Oakland, CA: Analytics Press.  October 23.

<http://www.analyticspress.com/scienceofmeasurement.html>

Taylor, Cody, and Jonathan Koomey. 2008. Estimating energy use and greenhouse gas

emissions of Internet advertising. Working paper for IMC2. February 14.

<http://imc2.com/Documents/CarbonEmissions.pdf>.

Weber, Christopher, Jonathan G. Koomey, and Scott Matthews. 2009. The Energy and

Climate Change Impacts of Different Music Delivery Methods. Analytics Press.  August

17. <http://www.intel.com/pressroom/kits/ecotech>

Page 10: The Climate Case for Cloud Computing

Ian Gotts

Nimbus Partners

[email protected] iangottsiangotts.wordpress.com

Page 11: The Climate Case for Cloud Computing

“How green is your company,

Daddy?”

Page 12: The Climate Case for Cloud Computing

Rebecca Wettemann

Nucleus Research

Page 13: The Climate Case for Cloud Computing

Quantifying the Green Benefits of Cloud Computing

Page 14: The Climate Case for Cloud Computing

Let’s talk about

• The cloud – key questions

• The research

• Results

• Looking ahead

Page 15: The Climate Case for Cloud Computing

About Nucleus Research

An independent IT research and advisory firm specialized in investigative, case based research.

• Hundreds of published ROI case studies

• Founded in 2000

• 4.7M ROI tools distributed

• The only firm registered with the National Association of State Boards of Accountancy

Registration #108024

Page 16: The Climate Case for Cloud Computing

• Lower initial, ongoing costs• Faster time to value• Greater agility, flexibility

But what about sustainability?

The cloud: We all know the business benefits

Page 17: The Climate Case for Cloud Computing

What “they” say about cloud sustainability

• It’s all marketing hype to sell us more

• It’s only important if I save money

• It’s only important to treehuggers

• It can’t be measured

Page 18: The Climate Case for Cloud Computing

A closer look at cloud sustainability

• Nucleus reviewed salesforce.com’s data centers to quantify its total power draw.

• Inventoried each device in salesforce.com’s data centers• Calculated power draw of each device• Did not include indirect energy impacts

• Nucleus used its data on salesforce.com customers to determine how many servers they would need to support their applications if they were run on premise.

• Used user-to-server ratio and typical server configurations to calculate the average needed power draw for small, medium, and large companies

• Did not include cost of power on user side for network equipment

Page 19: The Climate Case for Cloud Computing

What we found

Salesforce.com customers experience a 91 percent energy savings by using the salesforce.com cloud instead of on-premise computing.

Salesforce.com customers save the energy equivalent of 11 barrels of oil every hour.

Page 20: The Climate Case for Cloud Computing

Looking forward

• Organizations will be increasingly pressured to show their carbon footprint and impact on sustainability.

• Current customers can estimate their savings by calculating the associated power draw and multiplying it by .91 for a good approximation of their current green benefit.

• Customers consider new or greater cloud investment can plan on similar metrics.

• The cloud advantage is more than just economic savings – and you can prove it.

Page 21: The Climate Case for Cloud Computing

Simon Wheeldon

CloudApps Carbon

Page 22: The Climate Case for Cloud Computing

Sustainability – A Boardroom Imperative

The reconciliation of environmental, social &

business demands

A boardroom imperative – driven by:

– Steeply Rising Energy, Waste & Water Costs

– Brand Pressure and Compliance Risk

– Investor, Customer, Supplier, Employee, Media Pressure

Source: 1000+ Global CEO Survey – Accenture & United Nations Global Compact

Page 23: The Climate Case for Cloud Computing

Rapidly Embed Sustainability Into Your Business

Measurement & reporting is just the first step …

You will soon need to consider how to: Set & Track Corporate Sustainability Goals

Align your whole organization behind your stated goals through targets

and budgets

Communicate your strategy right down to the individual employee

Empower EVERY employee to get involved and make a difference

Iterate against your goals in real-time to make sure you stay on track

Measure Align DeliverEngageCommunicateDisclose

Page 24: The Climate Case for Cloud Computing

Force.com & CloudApps (booth 918!)

The world’s most sustainable platform powers the leading

Corporate Sustainability Management application.

CarbonDisclosures

CloudApps Sustainability Platform

SourceAllocations

Footprint Comparisons

DisclosuresDefinitions

Emission Factor Bodies

Disclosure Calculation

Social Sustainability Sustainable

Innovative

Collaborative

Agile

Trusted

Page 25: The Climate Case for Cloud Computing

Jonathan KoomeyStanford University

Ian Gotts

Rebecca Wettemann

Peter Coffee, salesforce.comModerator:

Nimbus Partners

Nucleus Research

Simon WheeldonCloudApps Carbon

Let’s Discuss!

Page 26: The Climate Case for Cloud Computing

Whatever You Believe About Climate Change

Multi-tenant efficiency applies to all resources

– Cuts power in and CO2 out

– Impact could soon be a single-digit % of world total

Mandates are present reality and future certainty– Global carbon market already exceeds $140 billion

– EU = 64% of volume, but U.S. EPA now says CO2 is a pollutant

Cloud architectures enable optimizations– Diverse energy sources

– Ease of revising choices

A strong sustainability story is good business

Page 27: The Climate Case for Cloud Computing

The Climate Casefor Cloud Computing

Page 28: The Climate Case for Cloud Computing

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