Spending for Green IT is Buoyant Despite Stormy Economy, But Swift ROI is Key

Spending for Green IT is Buoyant Despite Stormy Economy, But Swift ROI is Key

While U.S. companies are showing increasing interest in energy efficiency solutions and services as cost-cutting safety valves for their IT divisions, businesses are also stepping up their demands for swift returns on those investments.

So reports Reuters in an article highlighting interviews with executives from leading firms that provide IT solutions and specialized help in greening and streamlining data centers.

Like many products that offer the combined plusses of cost-savings, greater efficiency and greener outcomes, sales of such IT services and solutions have remained buoyant despite the turbulent economy. IBM and Info-Tech released results this week of a recent survey showing that mid-sized businesses are buying into green IT.

However, the days of open-handed spending have sunk like a stone.

Steven Sams, vice president of IBM's global site and facilities services, told Reuters, "In these times, major capital investment without a clear return on that investment is unlikely."

Goldman Sachs research shows that some 75 percent of enterprise spending consists of operations needs like maintenance and staffing, while 25 percent consists of capital budgets -- which leaves the door open for careful spending on equipment with an eye to controlling or cutting overall expenditures.

Business cases can be made for such spending, if it can be shown that the product being purchased results in the greater savings than the expenditure.

To that end, a number of firms are offering enhanced or new solutions for data centers.

This week, Cisco Systems rolled out its Unified Computing System to take virtualization to a new level.

Last week, the data center group AFCOM and its think tank the Data Center Institute released its top five predictions for the industry at the Data Center World Expo in Las Vegas. The forecast, which can be read here, bodes well for green IT.

 

Image CC licensed by mikebaird.

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