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Beyond Greenwash

Selling Sustainable IT

by Tam Harbert

Whem it comes to being green, most IT users -- and many solution providers as well -- are lost in a forest of hype.

As an example, Gartner reported last August that IT users are confused about the definition of "green IT." They don't know what products and technologies are available today vs. in the future and, therefore, where they should invest their money.

"About 60 percent said they are completely confused about what green means, particularly in the next 12 months, when they are facing more financial pressures than ever before," says Rakesh Kumar, vice president at Gartner. The study listed a variety of products, services and technologies considered green, and recommended which ones IT users should focus on in the near, intermediate and long terms. (For details, see sidebar on page 23.)

Even solution providers wanting to respond to the greening of IT aren't quite sure of the meaning. What's green can change from one customer to the next, they say, depending on the size of the client, the location of its facilities and even the terms of its lease. "What might be vital to an enterprise of 15,000 to 20,000 users may not play so well with a 100-person company," says Francis Poeta, president and chief technical architect at solution provider P&M Computers. And location plays a big role in the cost of electricity and space. "Green may mean one thing in Omaha, another in Phoenix, and yet something else in metro Manhattan," Poeta says.

Regardless of what you call green, successful solution providers tailor solutions to meet their customers' needs and deliver business value. "Most people get the warm fuzzies when they think they are being eco-friendly, but that's not necessarily enough to change purchasing behavior," says Crystal Swart, marketing manager at Ingram Micro. "There has to be some ROI involved."

EXECUTIVE SUMMARY

Selling "green" means:

  • Sustainable technology and practices
  • More efficient business operations
  • Recycling used IT equipment

To take the pulse of the green scene, Channel Advisor talked to three solution providers who are all "selling green" by meeting the needs of their clients.

Selling Sustainability
Executives at Varsity Technologies, based in San Francisco, have struggled with the meaning of green. The 12-year-old solution provider started in the education and nonprofit markets. Those segments still make up more than half its revenue, but Varsity has been expanding among small and midsize customers. To continue growing in this space, Varsity wanted to rebrand itself but wasn't quite sure how, according to Patrick Ciccarelli, president and CEO. The company specializes in two green-related technologies -- unified communications and virtualization -- but it was hearing a lot of "greenwash" from vendors and distributors. "They were asking us to do green IT marketing," he says.

By that he means using the term "green" to describe virtually everything and yet nothing. "What does green mean?" he asks. "It doesn't really have a business value. If a vendor asks me how much more my customer will pay for this product if it lowers their carbon footprint, I tell them ?nothing.' "

Successful "green" solutions deliver business value first, environmental benefits second.

What does have business value is sustainability. "We talk about operational sustainability, economic sustainability and environmental sustainability," says Ciccarelli. The priority for a business is profitability, which is economic sustainability. "If you sacrifice economic sustainability for environmental sustainability," he notes, "you run the risk of going out of business."

Particularly in these tough economic times, Varsity's approach is to show clients how virtualization and unified communications technologies can make them more efficient and enable them to do more with less. "As soon as we help them do that," says Ciccarelli, "then we point out that we've also helped them to lower their carbon footprint, to leverage technology to create a better work/life balance for their employees, and to make their company more adaptive."

For Green $avings, Focus on the Near Term

Research firm Gartner identifies eight areas of green IT that can benefit customers over the short term, defined as the next two years. They are:

  • Improved design concepts for greener data centers
  • Advanced cooling technologies
  • Use of infrastructure management modeling and monitoring software
  • Virtualization technologies for server consolidation
  • More energy-efficient servers
  • Energy management for the office environment
  • Integrated energy management for the software environment
  • Co-generation, or combined heat and power generation for data centers

The most productive areas for solution providers are virtualization technologies and energy management in offices, according to Rakesh Kumar, vice president at Gartner. By virtualizing and consolidating more applications on fewer servers and decommissioning old machines, customers will immediately save space, energy and money.

Regarding energy management, Gartner has found that more than 30 percent of IT-related carbon-dioxide emissions come from the use of PCs and monitors. Solution providers can fill a consultative role by providing software tools to help clients determine how and where they are wasting energy in their offices, and then recommending products and techniques to reduce such waste.

"My advice for resellers is to focus on short-term paybacks over the next two years," says Kumar. "Anything beyond that, users simply are not going to have the cash available."

Small companies like Varsity's clients, which range in size from 25 to 200 users, usually won't get a big ROI from the energy savings associated with virtualization. He does explain to them, however, that virtualization will allow them to do more with fewer servers in less space. And with desktop virtualization, clients can get more use out of existing hardware.

"That's how you make money from green IT," he says. The whole conversation about sustainability "changes the dynamic of the client relationship. We are no longer pitching a product, but rather shared values. And those shared values lead to high-value solutions with higher margins."

Making Business Run Better
Virtualization is a specialization at P&M Computers, but Poeta is careful about calling it green or even touting energy savings. P&M focuses on midmarket clients with between 100 and 1,000 users in and around New York City, particularly manufacturers and financial service companies. Among these customers, the primary drivers for virtualization are disaster recovery, server consolidation and the capability to create a development environment for new applications.

His customers don't adopt virtualization to save energy, says Poeta. "It's more about how to make the business run better and faster," he says. "We are more involved in showing customers business value, and hopefully business value includes lowering costs, not just in the functioning of the business but also environmental costs."

Poeta also finds that some customers don't care about energy efficiency because they are not paying for their power. In Manhattan, he notes, clients may have long-term leases that include utilities. What's more, even when customers want to save energy, it can be challenging to find the ROI for the smaller companies. "It's difficult to quantify where you're saving energy unless you have large numbers of machines," he says. "If you only have 250 users, it can be questionable."

Ingram Micro Launches Green Education Campaign

Ingram Micro is making it easier for solution providers to go green.

The Green Scene Campaign, launched in third-quarter 2008, offers education about how to develop eco-friendly solutions and how to identify green opportunities, says Crystal Swart, marketing manager for the Green Scene Campaign. Complementing the campaign is the identifi cation of EPEAT- and Energy Star-compliant SKUs in Ingram Micro's online catalog.

EPEAT -- the Electronic Product Environmental Assessment Tool -- was created in 2006 by the U.S. Environmental Protection Agency to defi ne what constitutes a green IT product and make it easier for buyers to fi nd such products. All EPEAT products must meet 23 mandatory criteria, including compliance with the EPA's Energy Star rating system. Products receive bronze, silver or gold ratings based on how many of an additional 28 optional criteria they meet.

EPEAT identification on the Ingram Micro database will be particularly helpful to government resellers. A January 2007 presidential order required federal agencies to procure EPEAT products whenever possible. As of late November, Ingram Micro's online catalog listed 3,714 SKUs as EPEATcertifi ed, according to Haitham Hammad, strategic development and executive manager for Ingram Micro. The database also includes more than 1,600 products that comply with the EPA's Energy Star specifications.

Ingram Micro will also offer education on green solutions and opportunities at upcoming Partner Connection Summit workshops and other events. In addition, EPEAT has launched a reseller partner program to help the channel access EPEAT resources as well as to recognize eco-friendly solution providers. The program offers training, customizable collateral and a program logo to identify EPEAT resellers.

For more information on the Green Scene Campaign, visit ingrammicro.com/green. For information on EPEAT, visit epeat.net.

Doing Good by Going Green
That's even more problematic at New Jersey-based Powersolution.com. Serving customers that average 25 to 50 seats, the solution provider can rarely make a compelling case based on savings of $20 to $40 on monthly electricity bills, notes CEO David Dadian.

But Dadian did notice that his customers needed help getting rid of old IT equipment. So the company developed a program it calls psRecycleIT, in which it inventories customers' old equipment, then does forensic data scrubbing and ensures proper disposal.

Although New Jersey recently passed an Electronic Waste Recycling Act, that wasn't the impetus for the service, which Dadian started more than three years ago. Rather, he simply wanted to solve a growing problem among his clients.

Powersolution.com doesn't make much profit on the operation, frankly, and what profit it does make is usually donated to an environmental group that plants trees. That way, his company not only ensures that he and his clients don't contribute to e-waste, but that they give back as well -- helping to grow forests of real trees, not hype.

 

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