Cloud Computing – The IT Solution for the 21st Century
“At one location, we took 400 development servers and consolidated them into 8-10 physical servers to achieve significant savings.”
State Street, Madge Meyer
“To increase the utilization of hardware and power efficiency from a sustainability view, you need to have elasticity and flexibility and ability to move applications around between servers.”
Deutsche Bank, Marc Banks
Figure 2. Model derived net energy savings 2011-2020. $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2011 2012 2013 2014
*Energy savings measured against a scenario where there is no cloud computing. These are annual energy savings.
The business case model makes a number of assumptions around license costs, subscription costs and the complexity of existing deployment models which are highly firm specific and it would not be credible to roll these figures up to try to provide a US perspective.
What we can do is convert the cloud adoption forecast into financial savings through reduction in electricity usage. In this respect, key financial findings from the analysis are:
• By 2020, firms with annual US revenues of more than $1 billion will be spending 69% of their infrastructure, platform and software budget on cloud based solutions (Figure 1). Segmenting this further, 39% of the spend will be on private cloud computing while 30% will be on public cloud services (Figure 1).
• Annual net financial benefits associated with the energy saving from cloud computing are forecast to reach $824 million by 2011, rising to $12.3 billion by 2020 for the 2,653
16 2015 2016 2017 2018 2019 2020
global firms with annual revenues in the US above $1 billion (Figure 2).
Potential carbon reductions of 85.7 million metric tons per year by 2020, equivalent to the annual emissions from 16.8 million passenger vehicles.15
Alongside the financial benefits from cloud computing come the potential carbon reductions. Our forecast for the 2,653 global firms operating in the US identifies the potential to cut CO2 emissions with cloud computing as follows:
• CO2 reductions in 2011 of 5.7 million metric tons for global usage of cloud computing in 2011.
• Annual reduction of CO2 of 85.7 million metric tons by 2020 for multi billion dollar US firms (Figure 3).
• A reduction of 50% in CO2 emissions by 2020 compared to a scenario where there is no cloud computing (but a real increase of 36% in CO2 emissions as compared to 2011) (Figure 4) (Figure 5).
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