Green IT gaining increased interest in Asia
ConvergenceAsia staff
23/08/2007

In its latest report focused on the expansion of Green IT initiatives in the Asia Pacific region, IT market research company Springboard Research 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 agenda. However, there is still a limited awareness of Green IT products among end users, partly due to the lack of an adequate push by IT vendors in the region, said the report. Currently, large enterprises in Asia comprise the largest consumers of electricity used for computing at 37 per cent, followed by consumer IT users at 34 per cent, and the small/medium enterprise (SME) and small office/home office (SOHO) segment at 29 per cent.

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 US$5 billion per year is spent on powering computers in the Asia Pacific region, with over 66 per cent of this spending wasted on systems that are in idle mode.”

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 per cent of spending). This is closely followed by efforts on recycling and disposal (30 per cent of spending) and manufacturing in a more environmentally friendly way (25 cent 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 Anu Singh, Senior Market Analyst at Springboard Research. “Many end users in Asia see Green IT as just another additional cost and they still need to be educated on how it can benefit their organisation. 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:

- Cost Savings Will Drive Green IT Investments – Although the desire to create a greener planet will drive some implementations, the primary driver for Green IT adoption in Asia Pacific will be the cost savings provided by better energy efficiency.

- Regulations Become More Uniform and Stringent – With the European Union taking the lead and setting precedent, Asian governments will create more uniform and stringent Green IT regulations, which will spur greater visibility and adoption.

- Strong Growth in Virtualisation and Consolidation – A majority of end user Green IT investment will be directed toward virtualization and consolidation efforts, which will boost revenues for these solution categories.

- Equipment Take-back & Disposal Programs Become Imperative – IT equipment vendors operating in Asia 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.

- Asian Governments Will Lead Green IT Adoption in Asia – Asian government IT departments will be the leading Green IT adopters and will spark broader Green IT investments across other enterprises.

The Springboard Research report, Green IT Takes Center Stage, examines key trends in the emerging sector of Green IT in Asia over the next 3-5 years. A key focus area of the report is examining the current status of Green IT in Asia as well as outlining how the market is evolving, both from the IT vendor and IT user perspective. The report also examines the opportunities for IT vendors within Green IT as well as some of the adoption constraints in the market.

advertisement