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Green IT: Saving Money, Saving the World - Or Both?

Nemertes Research, July 2008, Pages: 6


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“Green IT” is a catchall phrase that combines two different goals. The first goal is to reduce an organization’s overall costs, primarily by reducing energy consumption. For many companies, reducing energy costs is the primary motivation behind a green IT initiative. As one IT executive puts it: “Green IT is all about saving greenbacks”.

The second goal is to reduce an organization’s overall carbon footprint for policy reasons beyond saving money, such as reducing environmental impact, or supporting a policy of national energy conservation. Many organizations—particularly not-for-profit firms and state and local governments—find it worthwhile to purse these external goals, which deliver rewards above and beyond cost containment.

Although the two goals align to a great degree (conserving energy cuts costs and reduces carbon footprint), they’re not identical. Companies focused on cutting costs may find, for example, that telecommuting is a lower priority than companies seeking to reduce carbon emissions (since the commuting costs are borne by employees rather than the company). The first step in devising and implementing a successful green IT strategy is therefore to determine which of the two goals is most important. Once that’s accomplished, IT executives can move on to benchmarking current consumption, applying reduction strategies, and measuring the effectiveness of each effort.



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