Study: Cloud Computing Will Reduce Data Center Energy Expenses by 38 Percent by 2020

A diagram shows the research methodology used by Pike Research A diagram shows the research methodology used by Pike Research

(WEB HOST INDUSTRY REVIEW) — As the cloud computing industry continues to grow, a new study finds the adoption of cloud services will lead to a 38 percent reduction in global data center energy expenditures by 2020.

The report, “Cloud Computing Energy Efficiency” by cleantech market intelligence firm Pike Research (www.pikeresearch.com), finds energy consumption and greenhouse gas emissions will be reduced as cloud computing becomes more mainstream.

“The growth of cloud computing will have a very significant positive effect on data center energy consumption,” senior analyst Eric Woods said 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.”

In August, Woods discussed the green data center market in an email Q&A with the WHIR.

Data centers will consume 139.8 terawatt hours (TWh) of electricity in 2020, a reduction of 31 percent from 201.8 TWh in 2010, according to the report.

The report finds the reduction will drive total data center energy expenses down from $23.3 billion in 2010 to $16 billion in 2020, as well as reducing greenhouse gas emissions by 28 percent.

Pike Research says the report provides a detailed analysis of the energy efficiency benefits of cloud computing, including evaluations of the SaaS, PaaS and IaaS markets.

In addition to profiles of key industry players, the report examines key demand drivers and technical developments in cloud computing.

Nicole Henderson

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Nicole Henderson writes full-time for the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto, and has been writing for the WHIR since September 2010. You can find her on Twitter @NicoleHenderson.

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