Bruce Hoernecke - Environmental benefits of cloud computing

Business owners are continually seeking ways to streamline operations and reduce expenses. Cloud computing has proven to be an asset in this endeavor by helping organizations to efficiently manage IT applications and storage on a pay-as-you-go per user basis. But there's an added benefit of cloud computing - research has found that it can reduce IT energy consumption and carbon emissions - great news for those of us that wish to follow green business practices. There is some impressive data on just how much cloud computing can reduce a company's carbon footprint versus an on-premise installation of IT equipment. A recent study by Accenture1 found that a 100 user cloud computing deployment can reduce energy consumption and emissions by more than 90%. Companies with about 1,000 cloud users showed reductions of 60-90%, and those with 10,000 users lowered consumption by 30-60%. Cloud computing providers make use of their expertise and technologies to efficiently manage the technology needs of multiple end users in a secure, shared resource model. Virtualization is used to create servers that are properly sized for the customer's end user count and data requirements. Server and storage allocation can be changed dynamically to ensure that the client is not caught short at any given moment. The typical on-premise IT installation is overbuilt. Servers, storage, and network hardware greatly exceed the requirements of an organization. This is usually done "just in case" of sudden increases in demand or in anticipation of possible business growth. This practice of "over-provisioning" is a factor in the type of increased energy consumption that can be avoided in the Cloud. Cloud computing service providers configure their servers and storage equipment to run at a much higher utilization rate, using fewer hardware components to effectively serve the needs of a larger user base. Economies of scale and technology innovations also give cloud providers the capability to deliver power to their data centers at rates of almost twice the efficiency of the average on-premise IT room. The business community has been subjected to a volatile energy market in recent years, making it more appealing than ever to follow green practices. Cloud computing can help a company reduce its carbon footprint while adding a measure of predictability to a percentage of operating costs. 1. Accenture, "Cloud Computing and Sustainability: The Environmental Benefits of Moving to the Cloud" Bruce Hoernecke is the president and CEO of BBH Solutions, New York, N.Y.