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Cloud computing to cut 38% of data center energy costs by 2020: Pike Research

CTBR Staff Writer Published 07 December 2010

The cloud computing services has been growing continuously, offering a way for an alternative to traditional data center operations. Hence, the adoption of the cloud computing services will lead to a 38% reduction of the worldwide data center energy expenditures by 2010, says a report from Pike Research.

Pike Research's report, 'Cloud Computing Energy Efficiency', that provides an in-depth analysis of the energy efficiency benefits of cloud computing forecasts that data centers will consume 139.8 terawatt hours (TWh) of electricity in 2020, a reduction of 31% from 201.8TWh in 2010.

The reduction, which represents a decrease from the 226.4TWh that would be used by data centers in the firm's business as usual scenario, will lower total data center energy costs from $23.3bn in 2010 to $16.0bn in 2020, and cause a 28% reduction in GHG emissions from 2010 levels.

Pike Research senior analyst, Eric Woods said that the growth of cloud computing will have a very significant positive effect on data center energy consumption; few clean technologies have the capability to reduce energy expenditures and GHG production with so little business disruption.

"Software as a service, infrastructure as a service, and platform as a service are all inherently more efficient models than conventional alternatives, and their adoption will be one of the largest contributing factors to the greening of enterprise IT," Woods said.