Yesterday the CDP launched a new study Cloud Computing – The IT Solution for the 21st Century a very interesting report which
delves into the advantages and potential barriers to cloud computing adoption and gives insights from the multi-national firms that were interviewed
The study, produced by Verdantix, looks great on the surface. They have talked to 11 global firms that have been using cloud computing for over two years and they have lots of data on the financial savings made possible by cloud computing. There is even reference to other advantages of cloud computing – reduced time to market, capex to opex, flexibility, automation, etc.
However, when the report starts to reference the carbon reductions potential of cloud computing it makes a fundamental error. One which is highlighted by CDP Executive Chair Paul Dickinson in the Foreword when he says
allowing companies to maximize performance, drive down costs, reduce inefficiency and minimize energy use – and therefore carbon emissions
The mistake here is presuming a direct relationship between energy and carbon emissions. While this might seem like a logical assumption, it is not necessarily valid.
If I have a company whose energy retailer is selling me power generated primarily by nuclear or renewable sources for example, and I move my applications to a cloud provider whose power comes mostly from coal, then the move to cloud computing will increase, not decrease, my carbon emissions.
The report goes on to make some very aggressive claims about the carbon reduction potential of cloud computing. In the executive summary, it claims:
US businesses with annual revenues of more than $1 billion can cut CO2 emissions by 85.7 million metric tons annually by 2020
A typical food & beverage firm transitioning its human resources (HR) application from dedicated IT to a public cloud can reduce CO2 emissions by 30,000 metric tons over five years
But because these are founded on an invalid premise, the report could just as easily have claimed: