Tuesday, October 28, 2008

Computer Makers See Profits in Retooling Clients’ Data Centers

It appears that even some of the biggest tech companies have decided to “go green.” Many companies, such as Hewlett-Packard Co. and International Business Machines Corp (IBM) have made it essential, especially during our current financial crisis, to create new energy-friendly hardware. High electricity cost of firms over the years has resulted in a demand for new computer servers to cut back on the use of power. Recently, IBM has surprised the business world by designing a new “Green Data-Center Services” business. This newly developed business redesigns its client’s data servers allowing it to run efficiently, while using less energy. In the fourth quarter of 2007, IBM signed $300 million in orders for this new business. Samuel Palmisano, IBM Chief Executive, believes within the next five years the worlds biggest companies will modify their data centers to deal with these rising costs. Hewlett-Packard Co. has also been making moves as it bought out EPY Mission Critical Facilities Inc. This is an engineering company whose main focus now is designing this new energy-friendly hardware. Companies have also found that consolidating their hundreds of smaller data centers into fewer larger data centers is more energy efficient. Citigroup Inc. has gone from 52 smaller data centers to 14 major data centers.

Well, I guess I could say that I am astounded to see that finally these tech companies have made an effort, and are finally finding ways to cut back on business expenses and save energy. Over the years, there has been a big demand from many customers for these energy-efficient designs. Knowing that these companies are finally reacting and are willing to cooperate with their customers keeps my mind complacent. The last thing Wall Street needs is an electrical bill of $12 billion, which is expected in 2010. Why spend all of this money when it could easily be avoided. This new energy-friendly hardware actually cuts back on the air conditioning coolant levels, which eliminates unneeded equipment. The software can now run by a single computer at full capacity as oppose to multiple computers at full capacity. This new system will save up to millions of dollars a year. It’s good to see companies such as IBM, HP, Dell, and Citigroup going forth with this, because these are all established companies that have the trust of many people. Although, this all seems promising I still have my doubts. Is it safe to cut back on company’s data centers that hold millions or even billions of customer’s records? Is the speed and power of these devices sufficient enough to run these systems? Until, I personally see this go into effect I will still have my doubts. But what is actually more to ask, a new system that saves our world as well as money doesn’t get better than this. I like where technology is headed but time can only tell.

http://online.wsj.com/article/SB122090819257011743.html?mod=article&mg=com-wsj

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