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Cloud Computing Could Cut Data Center Energy Costs by 38 Percent

By CIOinsight  |  Posted 12-09-2010 Print
Pike Research, a clean technology market research firm, projects that cloud computing could help shave data center energy spending by 38 percent by 2020.

The efficiencies provided by cloud computing could reduce global data center energy costs by up to 38 percent by 2020, analysts say.

According to a new report from Pike Research, the energy efficiency benefits of cloud computing are substantial, and growth in the market will have important implications for both energy consumption and greenhouse gas (GHG) emissions. The clean tech market intelligence firm forecasts that the adoption of cloud computing will lead to a 38 percent reduction in worldwide data center energy expenditures by 2020, compared with a business as usual (BAU) scenario for data center capacity growth.

"The growth of cloud computing will have a very significant positive effect on data center energy consumption," said Pike Research senior analyst Eric Woods, in a statement. "Few, if any, clean technologies have the capability to reduce energy expenditures and GHG production with so little business disruption. Software as a service, infrastructure as a service and platform as a service are all inherently more efficient models than conventional alternatives, and their adoption will be one of the largest contributing factors to the greening of enterprise IT."


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