At its annual Energy Analyst And Sourcing Advisor Event in Berlin, Deutsche Telekom/T-Systems re-emphasized its commitment to service the energy sector with a dedicated offering. Over the last three years, Deutsche Telekom has spent significant resources in building up expertise to become a platform and service provider for the utility sector. Our main observations during the event were that Deutsche Telekom:
The Oil And Gas Information Technology Innovation Dilemma
The hydrocarbon logistics chain of natural gas and crude oil connects globally distributed exploration and production sites with industrial and private consumers via pipelines, tankers, rail cars, and trucks with massive intermediate buffering storage and conversion facilities (tank farms, refineries, gas plants); it is the lifeblood of our energy supply chain today and for the coming decades.
More than 75 million barrels of oil and 300 billion cubic feet of natural gas are produced, transported, and consumed all over the globe — every day. Along the complex transportation chain, these special bulk products, both liquids and gases, are transferred between the different modes of transportation, resulting in a number of challenges based on complex measurements of product volumes and masses:
Measurement accuracy. In an ideal world, we would always determine the mass of crude oil and natural gas at each measurement point; however, due to the large quantities involved, weighing is possible only at the very end of the logistics chain. Consequently, we have to live with measurement data that typically carries an uncertainty of 0.1% to 0.5 %, depending on the measurement devices’ intrinsic accuracy.
As green IT plans persist through 2010, I'm starting to receive questions from IT infrastructure and operations professionals — particularly data center managers — about the use of cleaner energy sources (e.g. wind, solar, fuel cells, hydro) to power their data center facilities. So when Google recently announced its purchase of 114 megawatts of wind power capacity for the next 20 years from a wind farm in Iowa, I got excited, hopeful of a credible example I could refer to.
But as it turns out, Google will not be using this wind energy to power its data centers. . . yet. Despite Google stating that the wind capacity is enough to power several data centers, their Senior Vice President of Operations, Urs Hoelzle, explains that, "We cannot use this energy directly, so we're reselling it back to the grid in the regional spot market." I confirmed this in electronic conversations with two other industry insiders, Martin LaMonica (CNET News) and Lora Kolodny (GreenTech), who also covered the announcement.
And it's unfortunate since Google's $600 million data center in Council Bluffs, Iowa could likely benefit from the greener, and possibly cheaper, wind energy. But Iowa is a large state and it's likely that distribution of the wind energy is an issue since the Council Bluffs data center appears to be well over a 100 miles away from their wind farms several counties away.
Some days ago at Forrester’s IT Forum in Lisbon (June 9-11) I gave a presentation together with my colleague Andy Bartels on the IT market recovery (we predict a 9.3% IT market growth in 2010) after two economically challenging years in 2008/9. In fact, we were making the point that the market rebound we currently see is not simply a recovery but the beginning of a new IT hyper growth phase fueled by a new wave of innovation.
A strong driver of this innovation is what we call Smart Computing at Forrester: the integration of physical world information into intelligent IT-supported business processes in 4 steps: Awareness (via new sensor technology), Analysis (with advanced BI solutions), Alternatives (including rules and process engines) and Action (in industry business applications), plus a 5th feedback loop of Auditability for tracking and learning.
A well-known example of smart computing solutions is smart metering in the Utilities industry. In another presentation in Lisbon, a colleague asked the audience, a room full with all the leading IT service companies, who all had an initiative running with smart metering – everyone in the room raised their hands. Then he asked who actually had more than 1-3 (pilot) projects running – and almost no one raised their hand.
Is smart metering just hype that everyone is jumping on or what is the reality of the lighthouse example of smart computing at this point in time?