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Building a Smarter Planet –Green and Beyond

David TurekVP Deep Computing

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The world is hot, flat, and crowded. Thomas Friedman

Fortunately, it is also getting smarter.

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Our world is becoming INSTRUMENTED

We now have the ability to measure, sense and see the exact condition of everything.

Our world is becoming INTERCONNECTED

People, systems, and objects can communicate and interact with each other in entirely new ways .

Virtually all things, processes and ways of working are becoming INTELLIGENT

We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events.

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In 2001, there were 60 million transistors for every human on

the planet… by 2010 there will be 1 billion transistors per human

Instrumented …every location, state, temperature, condition will become a source of valuable insight

In 2005 there were 1.3 billion RFID tags in circulation…… by

2011 there will be 30 billion

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Worldwide mobile telephone subscriptions reached 3.3 billion

in 2007An estimated 2 billion people will

be on the Web by 2011

Interconnected …systems working together in new ways

Daily financial market messages growing from 5 billion in 2006, to 130 billion+ per day in 2011

Our personal information footprints will grow 16 times

between now and 2020

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We’ve thought about IT as the world of data centers, software,

PCs, routers, bandwidth.We’ve thought about

infrastructure as the world of buildings, factories, hospitals,

roads, pipelines.Those worlds are converging.

The world can become smarter. We’re building it with our clients.

Intelligent …every insight results in action that creates new value

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Of all the potential electricity available in an energy source, only 30 percent reaches consumers…

…an estimated 170 billion kilowatts are wasted by consumers each year due to insufficient power usage information

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What’s smart?• Smart appliances, meters and sensors

adjust consumption dynamically based on usage

Smarter Business Outcomes• 10 percent lower electricity bills• 50 percent reduction of short-term peak

loads • $70 billion projected savings through

better use of existing infrastructure

Smart Utilities Example Pacific Northwest National Laboratory changes the business model for energy delivery

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Forty-five percent of traffic on the busiest New York City streets is circling the block looking for parking…

…congested roadways cost $78 billion annually in the form of 4.2 billion wasted hours and 2.9 billion gallons of wasted gas

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What’s smart?• New, dynamic business model• Congestion charging • Real-time traffic prediction• Technology to optically recognize cars in

milliseconds• Real-time congestion tolling

Smarter Business Outcomes• 25 percent reduction in traffic• 40,000 more citizens on public

transportation• Less noise pollution and lower carbon

emissions

Smart Traffic ExampleCity of Stockholm breaks gridlock with a smart road use management system

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In the U.S., a typical carrot has traveled 1,600 miles, a potato 1,200 miles, a beef roast 600 miles

…grocers and consumers throw away $48 billion worth of food every year

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What’s smart?• First of a kind tracking solution to ensure

meat products kept in optimal condition from farm through supply chain to retail store.

Smarter Business Outcomes• Tagged over 3 million crates for tracking• Allows parent company, Nortura–a

cooperative of 31,200 farmers in Norway to improve delivery locally produced sustainable meats and eggs

Smart Supply Chain Example

Matiq turned its attention to developing solutions for food safety and traceability

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50 percent of the world’s population

is projected to live in areas of water scarcity by 2030. Industrial use accounts for about 22 percent of freshwater usage today.

…the combined direct consumption of five food and beverage giants in 2007 was enough to serve the daily basic water needs of everyone on the planet

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What’s smart?• Reduced waste, annual savings:

– 20 million gallons of process water– 15,000 gallons of chemicals– 1,550,000 kWH of electricity

Smarter Business Outcomes• $3 million in annual savings by reducing

water usage by 27 percent • Over 30 percent manufacturing production

increase

Smart Water Management ExampleIBM retooled chip making process to focus on reducing the use of water, energy and chemicals

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Information Technology energy use is growing 12 times the overall demand. Data Centers alone consumed 180B kilowatts in 2007

…Data center electricity usage will double to 100 billion kWh or $7.4 billion by the year 2011.

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What’s smart?• Increased productivity, reliability and

availability• Dynamic data center approach• Smart energy consumption

Smarter Business Outcome• Average achievable energy savings

40%+• Assessments can show average pay

back < 2 years• Average utilization rates can be

increased 2X to 4X• Defer new data center investments

Smart Data Center ExampleKika-Leiner implements “green data centers" to support rapid growth

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IBM Example

Retrofitting existing buildings to be more energy efficient typically reduces total energy consumption by 20-50%...

…while new “green” buildings have the potential to reduce energy consumption by 80% or more.

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IBM Example

Smart Green Building Example IBM opens its largest data center and greenest location worldwide

What’s smart?• Maintain and manage lifecycle of facilities

and assets• Use property best practices for power,

temperature, layout, and identification of problems

Smarter Business Outcome• Provides for water-cooled IT equipment • Uses low-sulfur fuels for backup generators• Mechanical system design is 40 percent

more efficient than one without heat exchangers for free-cooling

• 6,550 tons of GHG reduction annually• Qualified for incentives from state and local

energy provider

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Laws, Regulation, Standards

Business Opportunities

and Challenges

Stakeholder Pressures

Costs and Availability

Factors and Influencers That Will Demand Our Attention

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StrategyStrategy PeoplePeople InformationInformation ProductProduct

ITIT PropertyProperty BusinessBusinessoperationsoperations

Holistic Approach is Recommended

21 visit ibm.com/green

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We have the opportunity to think and act in new ways—efficient, smart and sustainable.

The question is, what will we do with it?