Greener IT Pastures
Conserving energy is top of mind across every business. However, as application growth continues to outpace server performance, energy costs associated with 1U servers are expected to double this year.
While retailers are clearly investing in more solutions that can reduce energy consumption among IT infrastructure, there are options that don’t have such high price tags. By following a few best practices, chains can put their best energy-conservation foot forward, as well as reduce total cost of ownership of IT investments, in a much more cost-efficient way.
Energy-conscious companies, retailers and technology partners alike already have energy-reduction strategies in place. For example, some vendors are incorporating special processors that enable retailers to utilize less power when running servers, point-of-sale systems and kiosks.
By providing energy savings that tend to range between 20% and 40%, these solutions can help retailers reuse this energy elsewhere in the data center and at store level, and save dollars. (Read about some specific IT solutions in this month’s Retail Technology feature, “Solving Data-Center Dilemmas)
Then there are vendors, IBM for example, that are designing equipment and hardware with recycled plastic. They also opt for environmentally friendly packaging when shipping their equipment.
Some chains are even going to such extremes as relocating data centers to regions that have more natural-energy sources. For example, some companies are building data centers near the Grand Coulee Dam. The hydroelectric gravity dam, which is on the Columbia River in Washington state, is the largest electric-power-producing facility in the United States.
“It is a way to lower energy cost and improve their IT TCO,” Christian L. Belady, technologist, enterprise storage and servers, Hewlett-Packard Co., said during the recent Webinar, “Reduce Power Consumption While Driving Greater Computing Performance in the Data Center,” sponsored by CRN magazine and InformationWeek.
While these ideas and results are tempting, they clearly take a large level of commitment and deep pockets. However, there are plenty of energy- and cost-saving options—many of which are virtually free—that can be added immediately in any data center:
Create a hot aisle/cold aisle configuration. Since most servers operate at the same temperature, retailers should alternate unit placement. To create a cold aisle, the servers should face each other, allowing the units’ back ends to face each other. The power and heat they emit creates a hot aisle; meanwhile the faces of the units remain cool;
Measure the power being output from the servers. By matching the airflow, retailers can adjust air conditioning so servers don’t overheat;
Seal all cable holes or cutouts. This will keep heat from leaking out of servers and being ingested by a unit in a cool aisle; and
Place air conditioners perpendicular to hot aisles. Also, use platforms if servers need to be elevated to achieve a uniform airflow of cool air.
While achieving a lower cost value always carries a lot of public-relations weight, this should not be the end goal for any retailer’s energy-management strategy.
Instead, all companies should be striving for the same thing: better reliability and longevity of IT systems, and a positive impact on the environment.
Winn-Dixie team honored for turnaround
JACKSONVILLE, Fla. The team that lead Winn-Dixie Stores’ successful turnaround initiative is being honored by the Turnaround Management Association for the best ‘Mega Company Turnaround’ for 2007. Comprised of financial experts from The Blackstone Group, Skadden, Arps, Slate, Meagher & Flom and Smith Hulsey & Busey, the team helped Winn-Dixie regain the market share and profits it started to lose in the mid 1990s and early 2000s to competitors Publix and Wal-Mart.
Winn-Dixie filed for Chapter 11 bankruptcy in early 2005 after reporting year-to-date losses of $552.8 million or $3.93 per share of common stock and a decline of 4.9% in identical-store sales in its second fiscal quarter over the same period in 2004.
Despite the difficulty of achieving a succesful turnaround, Winn-Dixie began its reorganization effort, while still continuing to operate its core business and preserving jobs. According to the Turnaround Management Association, it created new common stock for five classes of unsecured creditors, with recoveries ranging from about 96% to 53%. The company emerged from bankruptcy on Nov. 21, 2006.
For its fiscal year ended June 27, Winn-Dixie reported adjusted EBITDA of $85.9 million compared to a loss of $27.8 million last year and an identical-store sales increase of 1.6%
Sears ends deal with maternity retailer
PHILADELPHIA Sears and Mothers Work, the world’s leading maternity apparel retailer, will not be renewing their agreement, Mothers Work announced today. Under their current agreement, Mothers Works operates the maternity apparel department in 502 Sears stores through the sale of its Two Hearts Maternity branded merchandise.
Mothers Work said it expects its partnership with Sears to end on June 20, 2008, when it current deal with the company is expected to expire.
Rebecca Matthias, president and ceo of Mothers Work, noted, “While we are disappointed about the end of our relationship with Sears, we feel the decision not to proceed with a renewal is in the best interest of our stockholders since we were unable to reach terms on a renewal which would be favorable for Mothers Work and our stockholders. “