IT needs to think green to save greenbacks

Experts offer advice on the cost savings of green IT, outsourcing, protecting IP and making the most out of Web 2.0

By Julie Bort, Network World
June 12, 2008 04:04 PM ET

Two of the industry's notable visionaries, John Hagel (top photo) and Eric Openshaw (bottom photo), both from Deloitte, joined us for a recent Network World chat where they discussed green IT, outsourcing, protecting intellectual property and making the most out of Web 2.0.

Moderator-Julie: We want to welcome all of you joining us for today's chat. Our guests today are John Hagel and Eric Openshaw. John is co-chairman of the Deloitte Center for Edge Innovation and author of the best selling series Net Gain, Net Worth, Out of the Box and The Only Sustainable Edge. Eric is principal with Deloitte's Technology, Media & Entertainment, and Telecommunications Group and a 30-year industry veteran (and former Oracle vice president).

Eric_Openshaw: Good Morning/Afternoon; I 'm looking forward to today's discussion.

John-Hagel: Hi! It's great to be here - looking forward to some interesting conversation.

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TimDC: What is your opinion on the green IT initiatives -- are they just fluff or do they serve a true business purpose? Does an international standard such as ISO 14001 help the idea of green IT or muddy the waters?

Eric_Openshaw: Green IT is very much for real. We will see a lot evolve in the next two years, and likely standards will help at some point. We are placing our bets in this area. The amount of venture capital and size of investments is staggering. Literally everywhere our clients are asking about green IT and making plans.

ITgal: So, can you offer some examples of green IT initiatives that are worthwhile (short of yanking out all the gear I've got installed now)?

Eric_Openshaw: The most basic starts with the same place we were 20 years ago, which is how much paper is being consumed for printed output. From there many are examining what needs to powered all the time, and why. Significant amounts of data etc., are stored and forgotten, yet left on. Downsizing is possible.

John-Hagel: Another example would be adopting processes and software to increase utilization of existing servers and storage facilities rather than adding more capacity.

rpw188: The chat promo said that you can give advice on ways to save money that most IT people overlook. I feel like I've turned over every stone. What are some suggestions for cost cutting that I might not know about?

Eric_Openshaw: We believe the next frontier is examining power consumption broadly across the data center(s).

rpw188: Offshoring and outsourcing - is this trend still threatening a lot of U.S. jobs or are we starting to see companies bring jobs back in house?

John-Hagel: We're still at a relatively early stage in terms of offshoring and outsourcing but seeing a major transition in the motivation from near-term wage arbitrage to accessing focused, world-class talent. A lot of the horror stories leading to bringing jobs back in house come from companies that went out to find the lowest cost providers without focusing on service quality, reliability and potential to build capability more rapidly.

rpw188: How many more jobs will IT lose to offshoring? What will an IT department look like in say, 10 years?