The Computerworld Honors Program
Honoring those who use Information Technology to benefit society
Final Copy of Case Study
LOCATION:
Riverside, RI, US

YEAR:
2009

STATUS:
Laureate

CATEGORY:
Environment, Energy and Agriculture

Technology Area:
IT infrastructure management

ORGANIZATION:
Citizens Bank

ORGANIZATION URL:
http://www.citizensbank.com

PROJECT NAME:
Green IT

Introductory Overview
Citizens bank is evolving its computing platform toward a Green IT position. The Green IT initiatives on both an outsourced data center contract and the HVAC for its owned data center have reduced power consumption spending over $500K per year. Cost savings are expected to increase as Citizens continues moving forward on its Green IT initiatives.

Project Green IT was envisioned to generate a higher level of appreciation for the impact the data center has in the end-to-end delivery of the banks projects and to provide awareness that the data center is an important part of any product that needs its resources. The project was designed with the goal of reducing the banks carbon footprint by concentrating on and controlling the demand for commercial power.

This project has allowed the bank to focus the efficient utilization of: space, power and cooling resources by developing reporting mechanisms to track data center infrastructure demands. By analyzing single points of failure and power demand we developed a Power Usage Effectiveness (PUE) and Data Center Infrastructure Efficiency (DCiE) measurements of the data center envelop. These metrics are used to create baselines to help evaluate the effectiveness of our implementations of best practices such as: data hall air management, optimization of central chiller plants and the utilization of waterside economizer and to compare in other critical facilities in our portfolio and the industry.

Armed with the PUE and DCiE measurements we focus on providing world class data halls and the infrastructure to support them to our internal customers while maintaining a balance between energy usage and the resiliency of these critical areas. We utilize our extensive building management system to monitor and record power usage meters located from the main breakers down to the power distribution units serving the racks. These meters provide live and archival data so that our total power usage can be separated into subcategories such as:  IT load, HVAC load, lighting load and power conversion losses and to compare in other critical facilities in our portfolio and the industry. 

We have found there are fundamental things you can do to create win/win situations and reduce your carbon footprint. However, before any efficiency effort is undertaken a baseline agreement of power demand is critical to the overall success of the project. 

The project has allowed us to provide a much more reliable forecast of available data center infrastructure resources. In turn, the ability to determine available resources offers us the opportunity to upgrade our infrastructure in a compartmentalized and cost determinist approach. By more accurately tracking and implementing infrastructure we have created a paradigm shift of completing projects in a proactive mode as opposed to expediting projects in a reactionary mode. 

Our main impact areas have been in server consolidation through virtualization and power management.

Virtualization has one of the largest impacts to moving our centers into a greener environment. This approach truly captures significant win/win gains. There are wins for the business such as: reduced equipment and facility costs, quicker time to market and improved disaster recover options. There are also wins for the environment such as a reduced carbon footprint and demand for community services; specifically commercial power. 

At Citizens we have deployed a Virtualization First approach for server refresh and the implementation of new products and services. Utilizing the virtualization first approach we have been able to achieve a server rationalization ratio of 10:1 during 2008. We are on track to improve the rationalization to 14:1 for 2009. 


The Importance of Technology
How did the technology you used contribute to this project and why was it important?
The virtualization technology was important to our project. However, the often overlooked component is the organizational aspect of the developed program. Organizational as in Stop! get organized. There is too much reaction and not enough pro-action, that is to say acting proactively. Idle words, often spoken, but how can we obtain the nirvana of operating proactively in all the rush of reacting to the demands to update and deploy new products in our data centers?  All at once the word that got the attention of everyone was Power. To be precise it is probably more accurate to note it was the realization that we were rapidly running out of power and consequently space and cooling in our data centers. 

We needed to find a better way. There simply was no better Why. We were so busy implementing new projects and doing the business of the bank that the pace we were running out of power snuck up on us fast, very fast. We quickly realized that power really is the common denominator as it has a direct relationship on data center infrastructure space and cooling. There is also another interesting observation with respect to power  the cost. Aside from human resources, the cost of power is one of the most expensive parts in the product delivery chain. And the cost is not going down. 

While technology is an important enabler of project Green IT we realized we really needed to develop and implement data center best practices in order to define a true measurable starting point. By providing an understanding of how we were operating we were able to create efficiencies, reduce costs, expedite revenue and develop options to improve system and product resiliency. 

The most important aspect of technology is the ability to measure progress and prove the stated benefits are genuine. In our case we began by refocusing on tracking the use of: space, power and cooling by developing common tracking and reporting mechanisms based on industry best practices. Our approach was to include the internal and external providers and clients of data center infrastructure and partner with all stakeholders to create a measurable starting point. Our goal was to agree on the measurement process and reduce the overall power required to support legacy and future products and services. We recognized total power requirements may not be reduced, but the rate of power demand could be slowed down as a percentage of increased growth. Thus, we could obtain the most resourceful use of power. 

By measuring and reporting on power demand in a standard approach we created a tool to work in concert with the PUE measurement.

We began to investigate solutions to solve our spiraling demand on power resources. We found virtualization. We also found multiple win/win situations and realized as an organization we could reduce equipment and power costs, while gaining space back and become better corporate citizens by reducing our carbon footprint. We also quickly realized we would have to give up something. We would have to stop working in a reactionary mode and implement a project in a cost deterministic manner and figure out how to benefit from a reduced time to market for our products and services.


Benefits
Has your project helped those it was designed to help?  
Yes


Has your project fundamentally changed how tasks are performed?  
Yes


What new advantage or opportunity does your project provide to people?
The Green IT project has resulted in numerous benefits as follows:
	Reduced product build cycles, thus reducing time to market for new products and services.
	Created a measurable true win/win project. 
	Created the ability to forecast infrastructure components.
	Created the ability to implement projects in a cost deterministic manner by purchasing infrastructure in a one to many approach Vs a one to one approach
	Reduced data center power demand while providing/upgrading products and services. Thus, creating efficiencies while reducing the carbon footprint of Citizens Bank.
	Focused all team members on the efficient spend and use of environmental resources.
	Created a data center constant improvement process based on industry best practices of: recording, tracking, reporting and adjusting. Thus, we have changed to a proactive approach to data center operations as opposed to the reactive approach.

These benefits are a direct result to solving the problem of running out of power. Perhaps the most significant benefit is the realization we have developed a strategy that changed the bank by truly creating a win/win approach to product delivery. By answering the power question we have engaged business lines and project stakeholders as participants in the challenge of increasing Citizens revenue and reducing our carbon footprint. 


If possible, include an example of how the project has benefited a specific individual, enterprise or organization. Please include personal quotes from individuals who have directly benefited from your work.
The most exceptional services delivery aspect of the project is the paradigm shift that was created with respect to moving project delivery from a one to one reaction approach to a one to many proactive approach. This approach has allowed the bank to offer a more cost determinist way to forecast business needs.  As noted by the Virtualization First Project Manager:

By leveraging virtual technology in our data centers, we can reduce our footprint and increase time to market. The value add not only positions us for a green data center, but enables us to deliver flawless technical services for our customers.
 
Derek Costa
Vice President
Sr. Project Manager, PMP


Originality
Is it the first, the only, the best or the most effective application of its kind?   All of the above

What are the exceptional aspects of your project?
The most exceptional aspect of our Green IT project is the effect that was created on all members of the bank with respect to elevating their belief that we can have a positive impact on the environment.

This business case does not suggest we implemented the most recent technologies available to all infrastructure components in the industry. The originality of project Green IT is we were forced by necessity to stop what we were doing and think of a better way forward. Essentially, we were provided with the opportunity to solve a problem and become a good corporate citizen. Our solution to a better way began by focusing on two main efforts as follows:
1.	Developing power measurement as a baseline.
2.	Implementing a Virtualization First approach to project upgrades and implementations.

The most exceptional organizational aspect of project Green IT is the snowball effect. This effect is caused when stakeholders can see the value of their contributions to the business and the environment. This was accomplished by keeping a tight focus on tracking and reporting. In order to support this effort we have developed a mechanism to report on power consumption and resource savings as servers are implemented. The Data Center Infrastructure Services team, headed by David Roderick, then validates power consumption and reports on a weekly or on an as needed basis. The impact  stakeholders are eager to move to virtualization; they see the benefits from a cost savings, quicker time to market and reduced negative impact on the environment. This is the secret. This is the development of the win/win solution. This is infectious. Team members are eager to contribute. This is the snowball effect.

The most exceptional services delivery aspect of the project is the paradigm shift that was created with respect to moving project delivery from a one to one reaction approach to a one to many proactive approach. This approach has allowed the bank to offer a more cost determinist way to forecast business needs.  As noted by the Virtualization First Project Manager:

By leveraging virtual technology in our data centers, we can reduce our footprint and increase time to market. The value add not only positions us for a green data center, but enables us to deliver flawless technical services for our customers.
 
Derek Costa
Vice President
Sr. Project Manager, PMP


Difficulty
What were the most important obstacles that had to be overcome in order for your work to be successful? Technical problems? Resources? Expertise? Organizational problems?
The most important obstacle that had to be overcome was shifting the moving parts of product implementation from a one to one relationship to the one to many relationship. While simplistically stated there are many moving parts in the one to one relationship. The paradigm shift that leads to a one to many relationship, and subsequently from operating in a reactive mode to a pro-active mode, has organizational impacts in the complete product delivery chain. To understand the full impact you need to walk a day in the life of product delivery.  From product/project conception to implementation, from project teams, to finance, budget approval and asset allocation, to implementation and Business as Usual (BAU) operations; all touch points will be effected. 

The challenge boils down to successfully implementing bulk infrastructure that effect many areas of the business. The infrastructure of project Green IT includes all infrastructure components, to include data center operations and supporting facilities infrastructure. In this area there was a shift in technology implementation and understanding the demand on the data center. Specifically, while virtualization will reduce overall power demands and the facility carbon footprint, the initial impact will actually create a greater demand on: space, power and cooling. The final configuration will impact data center operations  total data center: space, power and cooling will be reduced. However, power and cooling will be increased in the virtualized areas of the data center.

Thus, the overall challenge became the affect of making sure all project touch points understood the impact of project Green IT to their current business practice and how it would be affected not only in the future, but during the transition phase. The net result was the development of a closer working relationship between all stakeholders. 



Often the most innovative projects encounter the greatest resistance when they are originally proposed. If you had to fight for approval or funding, please provide a summary of the objections you faced and how you overcame them.
While there was some resistance to project Green IT the resistance was more in the area of people seem to just resist change as opposed to questioning why the project makes sense or why it had to be implemented. The bottom line is we were running out of power. Once we could prove it and forecast revenue generating projects would be delayed the issues of resistance and upfront funding resolved themselves. All stated, absolutely key to the project is organized and tight project management and senior management level support.


Success
Has your project achieved or exceeded its goals?  
Exceeded


Is it fully operational?   Yes

How do you see your project's innovation benefiting other applications, organizations, or global communities?
Our Green IT project highlights the data center as in important aspect of the product delivery stream. The approach on Virtualization First has highlighted the ability to create win/win situations and seek constant improvement. This project has brought together silos of different, but interdependent work teams and created an environment where people review the end-to-end goals and project delivery requirements.

The implementation of Green projects can be difficult to cost justify. This is especially true in the current global economic climate. However, there are opportunities where Green projects are cost, business and technically justified. Virtualization is one area what benefits can be tracked and reported. The starting point must come from a position of understanding, a baseline of current performance. This basis of understanding begins tracking and reporting on infrastructure usage.

The success of the Virtualization First has been key to the success of project Green IT. The achievements in power reduction spending will continue. Our goal is to increase yearly savings to greater than $500K. We will review or success and lessons learned with our global partners. We recognize there are greater business benefits with respect to Green initiatives offered by governments in the European community. We are also aware Green initiatives are being reviewed in the United States. We are continuing to monitor world, regional and local government policies. When a win/win opportunity is available we will take advantage of it.

Designing and operating in a Green IT environment is infectious. You quickly realize we can have a huge impact on the global environment and make you organization more profitable at the same time. There is a sense of pride in this approach to business operations that is difficult to find. Your resources value their positions, their contribution to the environment and feel part of a successful team. Do not discard this impact; it is easy to request, but difficult to achieve. 



How quickly has your targeted audience of users embraced your innovation? Or, how rapidly do you predict they will?
In general people embrace change slowly. The first feeling that is revealed with any Green initiative is skepticism. The Green initiatives often are viewed as the latest new thing to do. However, when you can show stakeholders that we can offer a quicker time to market for their project, reduce the carbon footprint and reduce overall project cost all while the cost of commercial power is dramatically increasing in the business and private world  then you get people to sit up take notice. Wanting to be a part of a successful project has a snowball effect, so do the benefits.

All said, the success of project Green IT is based the win/win concept. The root of that win/win concept is power limitation. There is a direct need to change; that need is we where running out of power. Plain and simple, the need is necessity. The time to embrace new innovations is limited. We had to be successful. We developed the correct plan. We made it as simple as possible. We walked a day in the live of a project. We were successful. We can now take our project to the next level of success. We will roll it out to the global community and create a global advantage in our business community.


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