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Cloud Computing to Slice Data Center Energy Consumption by 2020

Cloud Computing to Slice Data Center Energy Consumption by 2020

Cloud computing is set to reduce data center energy consumption of 31% from 2010 to 2020, according to a recent report from Pike Research.  Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets.

Its newly released report “Cloud Computing Energy Efficiency“, provides an in-depth analysis of the energy efficiency benefits of cloud computing, including an assessment of the software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) markets.

The report indicates that companies have recognized the significant energy-efficiency benefits of cloud computing and its growth in the market will have important implications for both energy consumption and greenhouse gas (GHG) emissions.

Cloud computing revenue will grow strongly over the next decade, with a CAGR of almost 29%,” said senior analyst Eric Woods. “But the reduction in energy consumption will be even more significant. Massive investments in new data center technologies and computing clouds are leading to unprecedented efficiencies.”

Pike Research notes that transition to the cloud will continue to accelerate as they are less expensive to operate, consume less energy, and have higher utilization rates than traditional data centers.

The research firm forecasts much of the work done today in internal data centers to be outsourced to the cloud by the end of the decade.

Today, a large number of suppliers of servers, network equipment, disk drives, and cooling and power equipment has begun to design their products to suit the needs of large cloud operators.  This has resulted in improved operating margins through better use of electricity, and in turn to more adoption.

Cloud Computing Energy Efficiency“, also adds that several products designed specifically to optimize cloud computing have only recently begun to reach the market.

By Anuradha Shukla

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