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06/13/2006

Data Center Energy Consumption to Become Pressing Business Challenge, Predicts IDC

FRAMINGHAM, MA – JUNE 13, 2006 – CIOs attending the inaugural IDC IT Forum & Expo will be challenged to consider the future of their IT strategies in light of increasing energy costs. According to IDC, by 2009 technology operations in the U.S. will spend twice as much for power and cooling as they did to buy the server hardware in their data centers(1) and increasing Environmental Protection Agency (EPA) activity suggests potential intervention to curb the energy consumption of power-hungry data centers. The issue is one of many imperatives that CIOs attending the conference will navigate as they strive to build dynamic IT environments that align with, and drive, business objectives. The IDC IT Forum & Expo (http://www.idcitexpo.com/) opens tomorrow, Wednesday, June 14 in Boston and runs until Friday, June 16.

In a track entitled 'Aligning IT with Business Objectives,' IDC analyst Vernon Turner will review the urgent issues that CIOs must deal with, against the backdrop of government intervention, organizational structure changes, and the increasing scrutiny of the CFO. He'll be joined by CIOs from Austin Energy, Priceline.com, Gannet Co. and Hanover Insurance who will share the challenges and solutions their organizations have experienced in the quest to marry business and IT strategies.

Among the other issues that Turner and fellow presenters at the IDC IT Forum will discuss are:

– How IT staff must think and act like business analysts armed with IT

metric dashboards that are meaningful to lines of business;

– How regulatory requirements will increasingly mandate planning and

spending on business continuity and disaster recovery;

– How spending to support these non-revenue generating projects will drive

widespread acceptance of virtualization or shared resources over

isolated or individual IT deployments;

– How, by 2009, over 10% of all servers will become enterprise platforms

for virtual machines, meaning decreased expenditure on new IT hardware

and increased consolidation and virtualization of computing

resources(2);

– How virtualized technology will be matched by the acceptance of 'virtual

IT staff,' bringing an end to stove pipe organizations and turf wars.

"IT alignment starts at the data center," says Turner, IDC Group VP and General Manager of Enterprise Computing. "In a competitive market characterized by consolidation and outsourcing, the data center is at the core of IT's ability to increase service levels while maintaining or reducing delivery cost. Transforming the data center from a cost center to a strategic differentiator and competitive lever is the primary mission of today's CIO."

About the IDC IT Forum & Expo

IDC's flagship end-user conference, the IDC IT Forum & Expo is designed to provide IT and business executives with fresh perspectives on how technology can be used to drive business transformation and innovation. The conference features an impressive roster of keynote speakers that includes: Robert Reich, former U.S. Secretary of Labor; Mexico's Minister of Economy, Sergio Garcia de Alba Zepeda; Dr. Shaygan Kheradpir, CIO, Verizon Communications; Robert B. Carter, Executive Vice President & CIO, FedEx Corp.; author and management educator Jim Collins; John Gallant, President and Editorial Director of Network World; and John Gantz, IDC's Chief Research Officer. They join a line-up of case studies of successful technology-enabled business transformations from blue chip companies including Aetna, Austin Energy, BlueCross BlueShield, Boston Scientific Corp., Ford Motor Company, GE, HP, Merrill Lynch, MITRE, Priceline.com, Staples, and Wm Wrigley, Jr. Company.

The conference also offers three industry-specific tracks — for manufacturing, financial services, and healthcare — and an exclusive invitation-only CIO Summit for senior executives, which will provide a practical, hands-on approach to the imperatives that are crucial to the success of the CIO. IDC analysts will be available throughout the conference for private meeting with attendees. In addition, the conference features an expo floor showcasing the latest technology products and services from 40 companies to help attendees with their own organization's business transformation.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting http://www.idc.com/.

(1) The Impact of Power and Cooling on Data Center Infrastructure (IDC #201722, May 2006)

(2) Server Virtualization 2005 (an IDC multiclient study), May 2005

IDC

Web site: http://www.idc.com/

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