Greywale Management Releases First Service Provider Energy Strategy Taxonomy

Service Provider Energy Strategy

The energy consumption of telecommunication networks is emerging as a primary concern among network $0.01 per share in net earnings.  With this in mind, energy strategy has reached the board room! 

operators.   The largest U.S. carriers each spend over $1 Billion per year on energy.   One calculation shows that a savings of just 3% would translate in to

Given the scope, variability and diversity of these networks 

Greywale Management proposes the Greywale Service Provider Energy Strategy Taxonomy® to drive future discussions, research and investments and to prevent random acts of green.  Without a clear strategy map, the industry risk high levels of ambiguity and redundancy in these efforts and delays in implementing the much needed energy management techniques. 

Equally important it will prevent “random acts of green”.   Good “green” ideas are everywhere.   Each one may even have value.  Yet, without an overriding energy strategy driven by the taxonomy, service providers will not maximize their investment and business potential.  The use of scarce corporate resources, finances

and management attention may produce an initial euphoria but will lead to long term disillusionment. Moreover, the taxonomy will ensure that these resources and efforts are spent on the right long term solution that also addresses the current needed energy savings for the business.

http://www.prlog.org/12236478-greywale-management-announces-the-first-service-provider-energy-strategy-taxonomy.html

To download the Taxonomy go to www.greywale.com

A Telco Energy Strategy Should Demand ZERO Impact on Service

 As energy strategies reach the boardroom, service provider management should insist on “zero-impact” on services.  The stakes are too high in the competitive zero-sum game they participate in.  Customer satisfaction, reduced churn and a strong brand are paramount in this environment.  By treating energy as a strategic initiative they will achieve the benefits of lower OPEX, enhance brand and more efficient end-to-end operations.  Tactical energy initiatives will not get funded if they have a perceivable adverse effect on consumer and business services.  These adverse effects could be short lived, as during installation, or long term, if, for example, latency is introduced.   Thus, their energy strategy should demand zero impact on services.

Note the emphasis on “services” instead of “network”.    It would be unreasonable to demand zero impact on the network if you are deploying a new architecture or energy aware protocol.  Yet, with IP (Internet Protocol) the impact on the network should not cause the perceivable impact on services. 

Is zero-impact unreasonable and wouldn’t “minimal impact” be a better goal?  The challenge here would be to define what “minimal” means?  Would it mean X amount of video anomalies per 30 minutes?  Why not X+1?  Would it mean Y dropped calls/tower/minute?  Why not Y+1?  Also, who defines X and Y? Would the CEO, CTO, or CMO define them?  Would international standards organizations set them? 

 Setting the goal of “Zero Impact” sends a clear message throughout the organization of what is expected.  Terms such as “sustainability” and “green” will have clearer meaning.  Green projects that make people feel good but have no financial justification will fail fast so the real winners can progress.  Therefore, telcos and service providers should demand Zero Impact on services.

Contact: Greg Whelan at gwhelan@greywale.com to discuss.

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Service Provider Energy Efficiency (SPEE) is Inevitable!

Network traffic is increasing exponentially and energy efficiency is increasing linearly.  Yet, network engineers are focused on, and measured on, scalability and availability.  They don’t see their energy expenses.   However, given the simple math of exponential verse linear growth it is inevitable that energy efficiency and energy management will be a primary driver in the near future. 

Energy Management: Focus of Nokia Siemens Networks

Nokia Siemens Networks (NSN) announced their Technology Vision 2020 recently.  Energy management was one of six major pillars.   The six pillars are:

1. Support up to 1000 times the capacity
2.  Reduce latency to milliseconds
3. Teach networks to be self-aware
4.  Flatten total energy consumption
5. Reinvent telcos for the cloud
6. Personalize network experience.

The key point regarding energy is illustrated in the following chart.

  

As shown, electricity alone accounts for 15% of total OPEX.  In developing markets this can be as high as 50% with a high percentage of off-grid sites.  If energy management is ignored the cost of power will continue to rise with the expected exponential growth in traffic.  The next chart illustrates that while traffic grows exponentially, energy efficiency grows linearly.  Thus, the amount and cost of energy will rapidly increase. 

Other key facts that NSN articulated are that the RAN (Radio Access Network) accounts for 80% of energy consumption and that current installed base-stations are 50% less efficient than new ones. 

As with any energy management and energy efficiency program there is no silver bullet or one solution to solve this.  However, there are numerous solutions when taken together add up to real savings in energy and money.  This area is too large for this short post.  For now, consider four main areas to investigate

1. Devices: Components, Moore's Law
2. Network Architectures
3. Network Management and Operations
4. Marketing and Services

By focusing on energy management and energy efficiency the end results will be meaningful OPEX savings, reduced carbon footprint and an enhance brand for sustainability conscious consumers.

Please contact me if you'd like to discuss this post.  +978 992 2203  gwhelan@greywale.com

Introduction

The focus of Greywhale Research is Energy Management in IP Networks, both the service provider and the large enterprise.  We focus on the technologies, markets and business issues in this emerging area.

Energy Management in IP networks is a nascent marketplace.  Why focus on this area?  First, the Internet is expected to consume 4% of the world’s electricity up from 2%.  Reductions in this area can have tremendous economic and environmental benefits.  Currently IP Traffic growth is exponentially outpacing energy efficiency in both fixed and mobile networks.  A small percentage of energy savings translates into $Billions in energy cost.  Savings here, as in any OPEX, results in cash delivered to the bottom line. 

Second, sustainability for service providers and large companies is moving beyond saving money to becoming a strategic competitive advantage.  Consumers demand “green” and sustainability enhances the brand.  With a “bit” being a “bit” and a “packet” being a “packet” the brand image is critical to capture and retain customers.  Additionally, the global financial markets now link sustainability to management sophistication.

Given these reasons, the time is right to examine energy management and efficiency in large IP networks.  Please join us in the new journey.