Green IT – Has Australia Cleaned up its Act Yet?

September 22, 2007 (PRLEAP.COM) Technology News
Sydney, Australia – September 22, 2007 – Springboard Research, a leading innovator in the IT market research industry, today announced the results of its latest report focused on the expansion of Green IT initiatives in Australia.
Springboard found that while efforts focused on decreasing the environmental impact of information technology is still in the nascent stage, environmental concerns are climbing up the corporate IT and government regulation agenda. From a federal government perspective Australia lags behind in some respects, and has had a poor reputation for environmental leadership, but has the potential for leadership in key areas. There is still a limited awareness of Green IT solutions among end users, partly due to the lack of an adequate push by IT vendors in Australia. Currently, large enterprises in Australia comprise the largest consumers of electricity used for computing at 41%, followed by consumer IT users at 32%, and the small/medium enterprise (SME) and small office/home office (SOHO) segment at 28%.

“Computing devices have a significantly large and unrecognized carbon footprint. For example, an average-sized server has the same carbon footprint as a mid-sized 4wd taking 17 litres of fuel to travel 100km,” said Bob Hayward, Research Vice President for Springboard Research. “As companies become more accurate in determining what percentage of energy costs are allocated to the IT department, you will see cost savings be the key driver of Green IT investments. Springboard estimates that over AU$837 million per year is spent on powering computers in Australia, with the overwhelming majority of this spending wasted on systems that are in idle mode,” Hayward added.

IT vendors are currently increasing their efforts in the Green IT space - both from an altruistic and branding perspective - as well as to improve their bottom line. Springboard estimates that the largest amount of spending by IT vendors is focused on increasing the energy efficiency of their products (40% of spending). This is closely followed by efforts on recycling and disposal (30% of spending) and manufacturing in a more environmentally friendly way (25% of spending).

“While IT vendors are increasing their spending on green initiatives, IT end users still have little awareness of what Green IT is and how it can help their businesses,” said Phil Hassey, Country Manager, ANZ for Springboard Research. “Many end users in Australia see Green IT as just another additional cost and process to endure. They still need to be educated on how it can benefit their organization. This is where we feel IT vendors have a big opportunity: those that can educate end users on how to be green without increasing their costs or even saving money will differentiate themselves and gain not only increased market share, but also more brand equity in the eyes of their customers.”

As outlined in its report, Springboard’s top 5 predictions for the Green IT market are:

1. Cost Savings Will Drive Green IT Investments – Although creating a greener planet will drive some implementations, the primary driver for Green IT adoption in Australia will be the cost savings provided by better energy efficiency.
2. Regulations Become More Uniform and Stringent – With a change of government at the time of writing almost certain at the federal level, and APEC moving towards the Sydney Declaration on Climate Change, the move towards regulation will become even stronger.
3. Strong Growth in Virtualization and Consolidation –. Springboard Research estimates that in Australia, server virtualization is accounting for 30% of new product acquisitions. The installed base for virtualized servers is estimated to be 15%.
4. Equipment Take-back & Disposal Programs Become Imperative – IT equipment vendors operating in Australia will increasingly be required by law to provide equipment take-back programs for their customers as has been seen in some developing markets. As some vendors provide these services for free, the providers that do not will stand out.
5. There will be a Jostle for Leadership in Green IT in Australia – Australian State governments, the federal government if Labor wins the 2007 federal election, and environmentally impacting industries will be the leading Green IT adopters within their own IT operations, and spark broader Green IT investments across other enterprises in Australia.

About This Study

The Springboard Research report, Green IT – Has Australia Cleaned up its Act Yet? examines key trends in the ANZ Australian Green IT market. A key focus area of the report is the inclusion of multiple perspectives on the Green IT market in Australia, from end-users, government and regulators and IT Vendors. It also looks at global practices and procedures to understand their relevance for the local Australian marketplace. In addition it has looked to quantify some key measures such as energy use of technology to better understand the impact of IT on the Australian environment.

About Springboard Research

Springboard Research’s core values are value, integrity and insight. Led by a team of dynamic industry experts, Springboard Research provides its customers with high value IT market research that helps them identify new market opportunities, growth engines and innovative ways to go to market. As a result, Springboard’s clients lead rather than follow market trends. Not bound by legacy, Springboard’s cutting-edge research model leverages its offshore research centers, the Internet, and an increased use of technology as engines of innovation to deliver unique research value. Provided as an alternative to traditional IT market research, Springboard’s reports deliver data and knowledge in a more usable and interactive format for our clients. Springboard Research works with the largest IT companies in the world in the software, services, hardware, and telecommunications sectors.

Founded in 2004, Springboard Research serves the needs of its clients globally through offices in the United States, Australia, Singapore and Japan as well as global research centers in India and Pakistan.

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Media Contacts

Phil Hassey, Country Manager- Australia/New Zealand
Springboard Research