Why energy efficiency is critical for growth at Verizon

| March 29, 2011

Original article via CommsDay International

Energy efficiency and network optimising might be one of the hottest topics for improving operational costs of telecoms operators, but the two factors might also be a critical factor for growth.

Basically, an upgrade to the latest generation of equipment not only saves power and space, but it is sometimes the only way that operators can roll out new services, according to Chris Kimm, vice president, Network Field Operations EMEA & APAC at Verizon Business.

“The amount of power available in a given technical facility – in a data centre or network node, is the usual constraint on how much service you can offer there,” Kimm told CommsDay. “I went to visit a data centre run by a major software company in Singapore, and I asked the manager there, ‘how big is the centre?’ and he answered the question in Megawatts. He wasn’t talking about space, he wasn’t talking about the number of racks or squared footage, because the ultimate constraint is power. I can put so many CPUs per squared footage last year, I’m going to be able to put twice as many CPUs per squared foot this year, so squared foot is not really a usable measure. What really matters is how much power can I consume before I can’t have anymore.”Kimm, who overseas the network operations for Verizon Business for his regions, says that one of the key focuses for his team is to actually find and implement upgrades to older equipment so new services can be deployed. The initiatives are not only concerned about improving the density and capacity of existing service, but actually finding new capacity for new services.

“In this space, my network field operations team spend a fair amount of time on internal projects on optimising from the environment in the past into what the current state-of-the-art is in the telecommunications from an energy efficiency perspective,” he said. “And the reasons are – we are constraint, if we don’t optimise, we don’t have room to deploy the new box that will allow us to sell 100G service, or 40G service, or will allow us to offer VPLS service – those things [new equipment] need places to go and power to run them – they may be very efficient, but you’ve got to get something out of the way in order to do it.”

According to Kimm, Verizon has gone as far as to restructure its overall business strategy – reducing its capacity on wholesale voice – to make available power and space for equipment for new services.

“In the TDM voice business, we made a very conscious decision to reduce the amount of volume we do in wholesale voice that is at very low margins – so we made a decision. In the last couple of financial statements, we’ve called it out to say that we’ve seen a decline in wholesale, but ‘investors, don’t worry terribly much, because we are actually improving the profitably mix for the business’,” he explained. By consolidating the legacy voice infrastructure, “you can reduce the energy consumption in the technical facility by a measurable amount, where you can actually deploy additional services in the same facility – because typically you run out of power before you run out of space.”

Be Sociable, Share!

Tags: , , , , , ,

Category: Data centres, Featured articles, Green ICT, Networks

Comments are closed.

%d bloggers like this: