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How Cloud ERP Helps Maintaining Sustainability

It is an unclassified fact that human activities on planet earth contribute largely to climate change. As sustainability becomes an important subject that is part of worldwide policy agendas for economic, social, and environmental transformation, it is advisable for an organisation to use system which donates less negative impact to the environment. Cloud based - environment can be an ideal way to provide solutions for an agile, and environment-friendly business. Quoting from the book Green Information Technology, Cloud is a new technology that has been developed in order to provide a new era of applications, which will allow more efficient use of computing power. But how does Cloud exactly help a business to become more sustainable for environment and business growth itself?



Build Better Infrastructure

Cloud data centres are typically located closer to their source power facility in order to avoid large losses during the process of transmitting over long distances. Unless being built with overly high budget, traditional data centres usually do not have many choices for location. Cloud data centres also use less wattage yet high security to provide back-up for their data centres due to superior hardware setup. These data centres are specifically designed at scale and built for efficient energy utilisation to achieve optimal result.


Higher Utilisation Rate

Companies that use their own private data centres are potentially having lower utilisation rates due to purchased equipment and set up in anticipation of spikes. By using Cloud, the system consolidates machine use, performing servers at high utilization rates to increase efficiency. When hardware sits idle (commonly found at private data centres), it creates poor efficiency and has negative effects on the environment. Upon this reasoning, public cloud servers are 2 to 4 times more efficient than traditional data centres.


Hardware Refresh Speed

Traditional Data Centre hardware tends to be an extended period of use until the next upgrade or replacement due to its high expense and time consuming-server upgrade. Since the hardware in a public cloud possesses much higher utilisation rates than traditional servers, it will presumably exist in a shorter lifecycle, prompting a faster refresh time. It also costs more efficient for public cloud servers to upgrade regularly because new technology brings in better energy efficiency. The more energy efficient hardware is, the more expense public cloud provider will save, which causes drastically less energy to be utilised by the end of the day.


Reduced Electricity Use

Traditional data hardware systems are high maintenance, requiring secured power supplies, and tons of electricity. Moving basic software programs to the cloud will save higher amount of electricity. A case study done by the Lawrence Berkeley National Laboratory in national scale results that moving business software such as email, CRM, and more to the cloud can save enough electricity each year, enough to power Los Angeles for 12 months. This projects that the use of cloud could lower the total energy consumption of these software applications by 87%.


Reduction in Climate Impact

With all the recent buzz about cloud computing, companies have learned that by switching to a public cloud, they can gain flexibility and scalability while simultaneously cutting costs. But what they might have not realised is that the cloud also benefits the environment. Managing and processing data on a local server greatly increases carbon emissions. Climate impact is greatly reduced by the clouds improvement in energy efficiency as the result of fewer carbon emissions. NetSuite is cloud computing platform, according to research, saves the equivalent of 423,000 metric tons of carbon dioxide per year.


Moving to the cloud is a revolutionizing step in the IT industry. There is no denying that using Cloud provides positive impact, and environment-friendly is just one amongst many of its positive attributes.


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