How the Irish Government could save 30M Euro while improving services by using the cloud…

Posted in: Cloud Computing

26.03.2009

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A new State computer server strategy could reduce CO2 emissions by 18,000 tonnes.

As the emergency budget looms, and, with the Irish Government looking to cut spending, there is an opportunity for the State to save between €20m and €30m, as well as reduce carbon emissions by 18,000 tonnes, if it commits to an overhaul of its IT systems.

Right now, the average server in any business or State department operates at around 10pc capacity, and many organisations keep several servers, each for specific functions such as email, web hosting, accounts, sales and human resources.

A new revolution is sweeping the computing world under the term ‘virtualisation’, which allows firms to own fewer servers, spread the load and create ‘virtual’ machines to handle a sudden spike in demand. So, instead of seven machines running at 10pc capacity each, organisations can have two servers running at 50–60pc capacity.

The impact of this means that organisations require fewer servers, reducing maintenance and electricity costs significantly as well as the environmental impact.

Globally, computer emissions are estimated to account for 2pc of CO2 emissions, equivalent to the impact of the airline industry.

A further revolution in ‘cloud computing’, whereby IT infrastructure can be accessed remotely over the internet to internet data centres rather than in-house, could pave the way for further cost savings.

A parliamentary question tabled by Fine Gael’s spokesperson for Small Business and Labour Affairs, Damien English TD, last month to every minister revealed that there are an estimated 4,608 servers across Irish State departments, including 52 in the Department of the Taoiseach, 154 in the Department of Enterprise, Trade and Employment, 1,288 within the HSE, 376 in the Department of Agriculture and 510 in the Department of Justice.

A subsequent question about whether any of these departments intend to deploy virtualisation to reduce the number of servers, found only one department — the Department of Communications, Energy and Natural Resources under Minister Eamon Ryan TD — had plans to move to virtualisation.

Data centre expert Stephen McCarron of Dublin-based Hosting365 has looked at the number of servers currently being run by the Irish Government, and he estimates the Government could save the Exchequer at least €23m per annum.

“The running costs of these servers would be €23m a year just in maintenance; this ignores the cost of buying the machines and housing them securely.

“If you are running 4,600 servers, the electricity bill alone to keep them switched on and cooled would be €7m per annum. So, the Government is paying €500,000 a month to run these servers.”

The environmental impact of this, McCarron reckons, could be enormous.

“This would be the equivalent of a small town’s worth of CO2 emissions. There would be 18,000 tonnes of carbon dumped every year by the Government’s own IT infrastructure. If the Government moved to cloud computing, the output of carbon could be reduced to 200 tonnes per annum, he says.

English says the environmental and budgetary aspects of the current swathes of Government servers need to be addressed.

“These things are like smelters, they use that much energy. The people I’ve been talking to estimate a minimum of €20m in savings, this could rise to €60m. That would be by rearranging servers and getting better use out of them.

“This wouldn’t cost any jobs, it would not entail any reduction in front-line services and, in fact, would free people up to provide citizens and businesses with better services.”

English says that Colm McCarthy, who heads up An Bord Snip Nua, in his previous role at the Office of the Comptroller and Auditor General brought attention to the vast number of servers used within Government departments.

“This should be looked at in a strategic way. Minister Eamon Ryan TD was the only minister who indicated his department may move to a virtualised environment. A Government plan is needed because this is one area that would deliver an immediate return for the economy,” English says.

Fredrik Sjostedt, director of EMEA product marketing at VMware, says a move to virtualisation would require literally little more than a software upgrade and would safeguard existing IT investments.

“It is important to maintain and keep the investment you’ve already made. The difference is you use what you have more effectively. If these machines were operating at 10pc of capacity, then you don’t need to buy new servers for some time if the devices are modern,” Sjostedt explains.

Microsoft Ireland’s server group manger, Bill O’Brien, says the savings of €20m in running costs and 18,000 tonnes of emissions would be conservative.

“Without looking at the exact calculations, broadly speaking there are huge savings to be made.

“We’re only at the start of the virtualisation journey. Servers are a good place to start and, in fairness, many departments have started. There’s a lot more to do, but it’s great area to save time, energy and space,” O’Brien concludes.

By John Kennedy

Pictured: Stephen McCarron, Hosting365, and Damien English TD, Fine Gael spokesperson for Small Business and Labour Affairs

Link to the full article:  0207_001.jpg


Comments(0) March 2009

Hosting365 launch a new offsite Status Site

Posted in: Hosting365

Hosting365 have re-launched an off site detailed status site, complete with real-time status visibility on all Hosting365 core network nodes, datacentres, services like DNS and control panel sites and the Cloud Platforms. Additionally, a range of network tools, including speed tests, traceroute, voip, IPTV and video streaming tests are available.

Monitoring of all services is provided by independent third-party service - Pingdom.com

We recommend customers bookmark the site, as it will also be used to provide notifications of maintenance and issues.

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Visit the site at http://www.hosting365status.com/


Comments(0) February 2009

Newstalk FM Radio Interview

Posted in: About Me

 Newstalk Interview

Click the link above to download an interview I gave on live radio for Ireland’s nationwide talk radio - Newstalk. The programme was ‘Down to Business’ with Mark Mortell.

Topics include the start-up of hosting365, our recent investments in the cloud, and some personal background ! :)


Comments(2) January 2009

MAC / Hosting365 Desktop

Posted in: Hosting365

Just a little something R&D put together ‘unoficially’ for internal use, but I thought I’d put it up here for customers / friends who are discerning enough to enjoy both Hosting365 and Mac :)

Will work fine on a PC, as long as you don’t mind the big apple logo ;)

Hosting365 Mac Skin - Click this link to download the file - it’s a 6MB .png


Comments(0) October 2008

New Hosting365 Branding

Posted in: Hosting365

It’s been ‘in the wild’ for a few weeks now, and the new website is almost complete, so here is a preview of the new logo and branding for Hosting365….

365_logo_small.pngAs you can see, the orange logo is a stylised H but also represents the changing from one ‘lane’ to another - ie: changing from thinking internally and buying kit, to oursourcing to using infrastructure as a service.

Our tagline is now ‘Change the way you think about IT’ - again, reinforcing the idea that, particularly with our cloud platform, company’s need no longer worry about the physical kit, architecture or things like security, backups and hardware resilience…

New Hosting 365 Logo & Tag line

The work, as well as some other items, was completed by Irish agency - www.atomic.ie 


Comments(12) October 2008

Supporting Qwitter!

Posted in: Cloud Computing, Hosting365

The clever chaps over at Contrast - Eoghan and Paul - have excelled themselves yet again with the super smart and useful Qwitter web application - http://www.useqwitter.com/

If you’re a fan or user of the popular micro-blogging service - Twitter - you’ll know that sometimes your followers will depart, without so much as a ‘goodbye’ or ‘by your leave’!

Now, the solution is here! With Qwitter, you can pop your twitter name into the form, and an email for notifications and now, when a follower leaves, you’ll get a little alert to their departure -and- even better, you’ll get reminded of the last thing you said before they left! The perfect answer to that age-old question - ‘was it something I said?’

And better still, Qwitter is supported by and hosting on the Hosting365 Cloud Platform, giving it ample oomph and exceptional scalability to help cope with the deluge of traffic that has come, particularly after mentions on TechCrunch, TechMeme, Venturebeat, Delicious and sites, forums and blogs all over the web, as well as on Twitter itself!


Comments(0) October 2008

Hosting365 ranked 25th in this years Deloitte Fast 50

Posted in: Hosting365

At last nights awards ceremony, we found out that Hosting365 had, for the second year running, been ranked in the Deloitte Fast 50 - a ranking of the 50 fastest growing technology companies in Ireland !

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We ranked in 25th place overall this year (Click here for the full list of winners in 2008)

Last year, we ranked in 7th place (Click here for the list from 2007) as the 5 year trend took in our first years trading, where we did a mere 250k euro turnover :)

Based on our performance in 2009, I would expect us to also be in the rankings next year.

While it can be ‘easy’ to feature in the rankings once, to sustain ‘Top 50′ levels of growth for two years running (and hopefully three) requires expansion in excess of 500% ! If nothing else, I hope this gives an insight into the growing pains Hosting365 has had to endure and cope with over the last 7 years!

Our stability and prospects on the back of that growth are a testament to the passion, commitment and engagement of a truley amazing team of people who work with me, both in Dublin and Krakow !

More details on the scheme:

About the Deloitte Technology Fast 50 Programme

To enter the Fast 50 Awards, companies must meet the criteria listed below. Entries must be
sent in electronically, with the necessary supporting documents (audited financial
statements).

Entry Criteria:
 Have been in business for a minimum of five years
 Considered a technology company, which is defined as producing technology,
manufacturing technology-related products, be technology intensive, or use unique
technology to solve problems, devoting a high percentage of effort to technology
R&D
 The parent company must be Irish-owned and have its headquarters in Ireland
(subsidiaries of multinational organisations do not qualify)
 Operating revenues must be at least €50,000 for 2003

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Comments(0) October 2008

Budget 2009 - the green agenda

Posted in: Cloud Computing, Hosting Industry, Hosting365

From the Deloitte Commentary on the Budget yesterday:

Carbon Levy
The Minister confirmed that the Commission for Taxation has been asked to examine how the introduction of a carbon levy might best be structured and implemented to ensure that Ireland’s economic prospects are protected and the vulnerable in society do not lose out.  A firm measure is expected in next year’s budget.

The fact that the Minister is examining the matter in detail and awaiting a more rounded picture of the impact of the introduction of such a levy is commendable and it would be hoped that he would take on board the views of the Commission and other industry bodies before making a final decision next year.

Energy Efficient Equipment
Finance Act 2008 introduced 100% accelerated capital allowances for companies who purchased specific energy efficient equipment.  These included Building Energy Management Systems, Lighting and Lighting controls, and Motors and Variable Speed Drives. Budget 2009 extended the accelerated capital allowance regime to include four new categories.  These new categories are:

• Data server related systems and large energy saving office equipment associated with Information and Communications Technology
• Efficient heating/electricity provision equipment and control systems
• Efficient electrical and control equipment associated with process and heating ventilation and air-conditioning systems
• Alternative fuel vehicles

Any relief for business which commits to the Green Agenda is to be welcomed, particularly in current times when fuel and utility costs are at historically high levels and driving hidden inflation and additional cash outlay for business.

Source: http://www.deloittebudget.ie/

Of particular interest to me is that ‘Data Server related systems’ are now covered under this new measure, allowing for 100% capital allowance right off. For us, it means we could potentially right off our blade/san/virtualisation investments over 1 year, as opposed to the typical 3. It will be interesting to see how this, and the ’spectre’ of the expected Carbon levy next year influence IT spend in the coming months.

Our Cloud Platform already has impeccable green credentials, consuming a tiny fraction of the power of traditional servers and needing even less cooling.

I predict a gradual but accelerating move to virtualisation and cloud technologies, both onsite and outsourced, with more and more companys outsourcing entire IT functions as the costs of refit, refresh and staffing are compounded by carbon levys and penalties on inefficiencies.


Comments(0) October 2008

Press coverage of Hosting365 strategic partnership with Sugar CRM

Posted in: Hosting365

Sugar CRM build on Hosting365 Cloud Platform for Irish on-demand Sugar platform…

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Comments(0) October 2008

Webtrade goes live with Hosting365

Posted in: Hosting365

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Comments(0) October 2008

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