Green IT gains an upside in the economic downturn

DQW Bureau
New Update


The current global economic recession has squeezed IT budgets, hindered

capital expenditure and generally slowed the growth of IT development. However,

according to a report just published by Datamonitor, 'Can Green IT Bloom in an

Economic Downturn', it may also prove to be a significant upside to the market

for green IT.

“The global economic recession has spurred a paradigm shift in the way

organizations evaluate, budget for and deploy green IT,” said Rhonda Ascierto,

Senior Analyst, Datamonitor and the report's author. “The downturn has also

resulted in green IT trends for datacenters, client devices and asset lifecycle

management, as well as re-shaped return on investment (RoI) models,” she added.

Current green IT investments are driven by compliance with environmental

legislation and cost savings. In particular, green IT that eliminates the need

for capital expenditure (capex), such as data center virtualization, data center

design and layout, and asset lifecycle management, has become increasingly

important as IT budgets remain constrained.


Datamonitor research shows IT budgets are likely to remain flat in 2009,

which means cost-effective green IT is likely to increase in demand. As such,

organizations no longer regard green IT and cost-effective IT as being mutually

exclusive. This represents a significant paradigm shift and bodes well for the

future evolution of the global green IT market.

Restrained IT budgets also mean that green RoI models are becoming compulsory

and shorter. In order for green IT vendors to satisfy new RoI requirements, they

are being forced to develop more efficient and greener IT solutions.

Flat IT budget growth also means that organizations that face critical data

center limitations, such as a shortage of floor or rack space, are looking to

software or outsourcing alternatives to building new datacenters or upgrading

existing facilities. Those alternatives include IT leasing, managed services,

virtualization software, cloud computing and software-as-a-service (SaaS).

However, the greatest demand for data center green IT will be for data center


(Source: CIOL)