Turning Numbers into Knowledge:  Mastering the Art of Problem Solving is a Double Award Winner in the 2018 Global eBook awards!

Turning Numbers into Knowledge:  Mastering the Art of Problem Solving (3rd Edition) just won Silver awards in the Business Non-Fiction and Professional/Technical Non-Fiction categories in the Global eBook Awards for 2018. To see the list of Global eBook Award winners, go here.

Turning Numbers into Knowledge, 3rd ed: http://amzn.to/2xZl6W0

Downloadable chapters and supplemental files:  http://www.numbersintoknowledge.com

Pub Link on Apple iBooks:  https://geo.itunes.apple.com/us/book/turning-numbers-into-knowledge/id1295269201?mt=11

Paperback ISBN: 9781938377068

PDF ISBN: 9781938377099

EPUB ISBN: 9781938377082

KINDLE ISBN: 9781938377075

A chronology of climate denial going back decades

Inside Climate did a nice job summarizing the past 70 years of climate denial by fossil fuel interests, including links to key historical references.  Read it here. They also made this visual, which is helpful.

The best historical treatment of climate denial is still Oreskes, Naomi, and Eric M. Conway. 2010. Merchants of Doubt: How a Handful of Scientists Obscured the Truth on Issues from Tobacco Smoke to Global Warming. New York, NY: Bloomsbury Press. [http://amzn.to/2fm47CJ]

Gas lighting, from a century ago

Awhile back we stopped at Duarte’s Tavern in Pescadero, CA, which was founded roughly a century ago (I think the building predates the restaurant). They still had a couple of non-functional gas lamps on the wall, with wicks and everything. I took a couple of photos, which I show below. They look a lot like Coleman lanterns (roughly the same tech).

PS. We highly recommend Duarte’s for pie, grilled fish, and their amazing crab melts, among other things. If in the neighborhood, be sure to stop by.

My talk on climate solutions at Foothill College

Yesterday (May 31, 2018) I talked at the Foothill College Solutions conference about climate solutions, summarizing what I’ve learned in three decades of studying how to solve the climate problem. Here’s the main message:

We need to reduce emissions as much as possible, as fast as possible, starting as soon as possible. Everything else is noise.

I focus on the need for urgent action and the tools that give me hope that we can ultimately solve this problem. You can download a PDF of the talk here.

Please email me with questions or suggestions.

Turning Numbers into Knowledge:  Mastering the Art of Problem Solving is a Silver Medal Winner in the 2018 eLit eBook awards!

Turning Numbers into Knowledge:  Mastering the Art of Problem Solving (3rd edition) just won a Silver Medal in the 2018 eLit eBook awards, in the Business/Career/Sales category. See the full list of award winners here.

See also the previously announced awards for TNIK (3rd edition) by the Next Generation Indie Book Awards and the Hoffer awards.

Turning Numbers into Knowledge is a double winner in the Next Generation Indie Book Awards, with double honorable mentions in the Hoffer Book Awards!

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Turning Numbers into Knowledge:  Mastering the Art of Problem Solving (3rd Edition) just won Next Generation Indie Book Awards in the Business and E-Book Non Fiction categories for 2018. To see the list of Indie Book Award winners, go here.

Turning Numbers into Knowledge also got honorable mentions in the Hoffer Book Awards in the Business and Reference categories. To see the list of Hoffer Award winners go here.

Turning Numbers into Knowledge, 3rd ed: http://amzn.to/2xZl6W0

Downloadable chapters and supplemental files:  http://www.numbersintoknowledge.com

Pub Link on Apple iBooks:  https://geo.itunes.apple.com/us/book/turning-numbers-into-knowledge/id1295269201?mt=11

Paperback ISBN: 9781938377068

PDF ISBN: 9781938377099

EPUB ISBN: 9781938377082

KINDLE ISBN: 9781938377075

Updated list of articles on Bitcoin electricity use and related topics

This is an update to the list originally posted on January 10, 2018.


Technical Estimates

March, 2015. A Cost of Production Model for Bitcoin. The New School for Social Research.

March 29, 2016. Bitcoin Could Consume as Much Electricity as Denmark by 2020. MOTHERBOARD.

June 28, 2016. The Fair Cost of Bitcoin Proof of Work. Social Science Research Network.

March 10, 2017. Electricity consumption of Bitcoin: a market-based and technical analysis. mrb’s blog.

April 17, 2017. Bitcoin Electricity Consumption: An Economic Approach. Digiconomist.

December 9, 2017. The Power Consumption of the Bitcoin Network: Are we destroying the planet?. Google Docs.

February 6, 2018. Reviewing Morgan Stanley’s Bitcoin research reports. mrb’s blog.


Research Reports/Articles

June 26, 2014. Bitcoin Mining and its Energy Footprint. karlodwyer.com.

May 13, 2016. Cryptocurrency value formation: An empirical study leading to a cost of production model for valuing bitcoin. Telematics and Infromatics.

May 29, 2017. Sustainability of bitcoin and blockchains. Current Opinion in Environmental Sustainability.


General Bitcoin News Articles/Web Sites

December 8, 2017. Beginner’s guide series on cryptoassets. Medium.  This is a list of guides by the author, including beginner’s guides to:  Ethereum, Monero, Litecoin, Ethereum tokens, 0x, Tezos, Bitcoin Cash, Decred, Zcash, and IOTA.

January 10, 2018. It Is Silly Season in the Land of Cryptocurrency. The Atlantic.

January 18, 2018. This week’s Bitcoin crash was all about fraud and regulation. The Verge.

January 25, 2018. Bitcoin Is Taking Growing Regulatory Scrutiny, From Some, in Stride. BloombergTechnology.

March 8, 2018. Sierra Leone Secretly Holds First Blockchain-Powered Presidential Vote. coindesk.

March 9, 2018. Bitcoin Is Ridiculous. Blockchain Is Dangerous. Bloomberg.

March 11, 2018. Why Blockchain Will Survive, Even If Bitcoin Doesn’t. The Wall Street Journal.

Bitcoin Energy News Articles/Web Sites

April 12, 2013.  Virtual Bitcoin Mining Is a Real-World Environmental Disaster. Bloomberg.

June 29, 2015. Bitcoin Is Unsustainable. MOTHERBOARD.

October 5, 2015. Bitcoins are a waste of energy – literally. abc.net.au.

January 1, 2017. Bitcoin and Energy Consumption; An Unsustainable Protocol That Must Evolve. LinkedIn.

January 7, 2017. Proof of Work Flaws: Ethereum Lays Out Proof of Stake Philosphy. BTCMANAGER.com.

March 7, 2017. A Single Bitcoin Transaction Takes Thousands of Times More Energy Than a Credit Card Swipe. MOTHERBOARD.

March 15, 2017. How Much Energy Does Bitcoin Use? A Lot It Turns Out. SecurityGladiators.

March 30, 2017. Bitcoin Doesn’t Waste Electricity. Hackernoon.

May 16, 2017. The bitcoin and blockchain: energy hogs. The Conversation.

August 20, 2017. China’s Bitmain dominates bitcoin mining. Now it wants to cash in on artificial intelligence. Quartz.

September 28, 2017. The Ridiculous Amount of Energy It Takes to Run Bitcoin. IEEE Spectrum.

October 4, 2017. Why the Biggest Bitcoin Mines Are in China. IEEE Spectrum.

October 5, 2017. How Much Power Does the Bitcoin Network Use?. The Balance.

October 16, 2017. The electricity required for a single Bitcoin trade could power a house for a whole month. World Economic Forum.

October 25, 2017. A Deep Dive in a Real-World Bitcoin Mine. Digiconomist.

October 27, 2017. How Many Barrels Of Oil Are Needed To Mine One Bitcoin?. Huffington Post.

November 9, 2017. Bitcoin’s Exorbitant Energy Costs May Prove to Be Biggest Risk. Bloomberg.

November 15, 2017. “Ludicrous” – Analysts Debate How Much Power Is Consumed per Bitcoin Transaction. Bitcoin.com.

November 24, 2017. Will Bitcoin Consume All The World’s Current Electricity Production By Feb 2020?. Zero Hedge.

November 27, 2017. Bitcoin mining consumes more energy than 159 countries. CBS News.

November 27, 2017. Bitcoin mining consumes more energy a year than Ireland. The Guardian.

December 5, 2017. The Environmental Case Against Bitcoin. The New Republic.

December 5 2017. Bitcoin could cost us our clean energy future. Grist.

December 6, 2017. Bitcoin’s insane energy consumption, explained. Ars Technica.

December 7, 2017. Bitcoin Mining Operations Now Use More Energy Than Ireland. Greentech Media.

December 7, 2017. No, Bitcoin Won’t Boil the Oceans. Bloomberg.

December 8, 2017. Bitcoin Mining Outranks Entire Countries in Energy Consumption. BTCMANAGER.com.

December 11, 2017. Bitcoin Mining On Track To Consume All Of The World’s Energy By 2020. Newsweek.

December 13, 2017. Bitcoin energy boom stamps down colossal carbon footprint. Deutsche Welle.

December 14, 2017. Coal Is Fueling Bitcoin’s Meteoric Rise. Bloomberg.

December 15, 2017. The Hard Math Behind Bitcoin’s Global Warming Problem. WIRED.

December 15, 2017. Five myths about bitcoin. The Washington Post.

December 19, 2017. Why the bitcoin craze is using up so much energy. The Washington Post.

December 20, 2017. Bitcoin’s sky-rocketing energy use is a viral story. We checked the math. Public Radio International.

December 21, 2017. No, bitcoin isn’t likely to consume all the world’s electricity in 2020. CNBC.

December 21, 2017. 5 Best States For Bitcoin Mining (and the Worst). Investopedia.

December 30, 2017. THE BITCOIN CRAZE IS USING UP SO MUCH ENERGY. Independent.

January 3, 2018. China Takes Aim At Bitcoin Mining; These 2 Cryptocurrencies Soar. Investor’s Business Daily.

January 4, 2018. Can We Prevent a Global Energy Crisis From Bitcoin Mining?. Greentech Media.

January 4, 2018. Bitcoin’s Cheap Energy Feast Is Ending. Bloomberg.

January 6, 2018. The secret lives of students who mine cryptocurrency in their dorm rooms. Quartz.

January 8, 2018. Bitcoins Should Be Called BTUcoins, and That’s a Problem. Energy Institute Blog.

January 10, 2018. Bitcoin Could End Up Using More Power Than Electric Cars. Bloomberg.

January 10, 2018. Bitcoin Can Drop 50% and China Miners Will Still Make Money. Bloomberg New Energy Finance.

January 16, 2018. Beyond the Bitcoin Bubble. The New York Times Magazine.

January 16, 2018. Beyond Bitcoin: As Blockchain Adoption Accelerates, a Need to Manage Energy and Climate Emerges. RMI Outlet.

January 17, 2018. The rise and fall of bitcoin. The Economist.

January 18, 2018. Bitcoin Mining’s Energy Use Won’t Eat The World – If Prices Stay Below 19% Annual Growth. Forbes.

January 21, 2018. There Is Nothing Virtual About Bitcoin’s Energy Appetite. The New York Times.

February 3, 2018. Large European Power Company Will Not Sell Electricity to Crypto-Miners. Bitcoin.com.

February 4, 2018. The Cost of Crypto Is Turing Miners Towards Green Power. Bloomberg Technology.

February 5, 2018. Let’s Talk About Bitcoin’s Insane Energy Consumption. SingularityHub.

February 6, 2018. Bitcoin’s price crashed, but it’s still devouring an obscene amount of energy. Vox.

February 9, 2018. BITCOIN HAS TRIGGERED THE ENERGY ARMS RACE. Bitcoinist.

February 11, 2018. Bitcoin Mania Triggers Miner Influx to Rural Washington. The Wall Street Journal.

February 12, 2018. Iceland will use more electricity mining bitcoins than powering its homes in 2018. Quartz.

February 12, 2018. Bitcoin energy use in Iceland to overtake homes, says local firm. BBC.

February 12, 2018. Energy footprint of bitcoin beginning to outstrip entire State. The Irish Times.

February 12, 2018. To ethically mine crypto we need to use renewable energy. Quartz.

February 13, 2018. First you get the bitcoin, then you get the power outages?. The Mercury News.

February 14, 2018. Before you join the moral panic about bitcoin destroying our environment, remember that cash could be a whole lot worse. Independent.

February 14, 2018. Bitcoin Mining Costs More Electricity Than Houses, But it’s a Non-Issue. COINTELEGRAPH.

February 14, 2018. Bitcoin mining: What is it? Why does it consume so much energy? big think.

February 14, 2018. European bankers scoff at bitcoin for its risk huge energy inefficiency. Ars Technica.

February 14, 2018. Instead of Selling Natural Gas, This Canadian Company will Mine Bitcoin. BTCMANAGER.com

February 15, 2018. Iceland facing power shortage due to heavy Bitcoin mining. AMB CRYPTO.

February 15, 2018. Power-hungry bitcoin miners offer risks and rewards for Washington utilities. The Bond Buyer.

February 15, 2018. Bitcoin Mining Is Hindering the Search for Alien Life. Observer.

February 15, 2018. Bitcoin mining in Iceland might use extra electrical energy than households. The Hugo Observer.

February 15, 2018. It costs $26,000 to mine one bitcoin in South Korea – and just $530 in Venezuela. Yahoo! Finance.

February 16, 2018. Is it worth mining bitcoin in Australia?. finder.

February 16, 2018. Bitcoin gobbles up clean energy – just when the real world needs it most. Grist.

February 16, 2018. Bitcoin Mining Margins Are Shockingly Wide Between Countries. Bitsonline.

February 16, 2018. Hydro-Quebec considers special rates for Bitcoin miners as demand surges. Canadian Manufacturing.

February 17, 2018. Two Russian Regions to Develop Large Scale Crypto Mining. Bitcoin.com.

February 17, 2018. The Future of Bitcoin? Green Energy + Lightning Network. Bitsonline.

February 20, 2018. Venezuala Named Cheapest Place In The World To Mine Bitcoin Amid Petro Launch: Report. Telesur.

February 20, 2018. Blockchain goes East: opportunities in China. Global Risk Insights.

February 20, 2018. Bitcoin Rises as South Korea Regulator Shows Support for Trading. Bloomberg Quint.

February 22, 2018. Bitcoin Miners Are Flocking to Oregon for Cheap Electricity. Should We Give Them a Boost?. Willamette Week.

February 22, 2018. Why energy-sapping bitcoin mining is here to stay. The Conversation UK.

February 22, 2018. The Rise of Bitcoin Factories: Mining for the Masses. The Wall Street Journal.

February 22, 2018. Bitcoin Mining Will Have A Net Positive Effect On Energy Production And Usage Efficiency. Crypto Daily.

February 22, 2018. How Much Energy Does it Take to Mine Different Cryptocurrencies. Solar Magazine.

February 22, 2018. Venezuela’s On-and-Off Love Affair With Cryptocurrency Mining: It’s Complicated. Bitcoin Magazine.

February 22, 2018. Sharing Is Caring in the World of Crypto Pool Mining. NEWSBTC.

February 22, 2018. Is In-Browser Mining a Good or Bad Use Case for Cryptocurrency?. BTCMANAGER.COM.

February 23, 2018. Thanks to the enormous security risk, energy-sapping bitcoin mining is here to stay. Quartz.

February 23, 2018. New Project to Tackle Crypto Energy Crisis by Generating Electricity Through Waste. COINTELEGRAPH.

February 23, 2018. Montana Scores $250 Million Bitcoin Mining Campus. Bitcoin.com.

February 23, 2018. Bitcoin and blockchain consume an exorbitant amount of energy. These engineers are trying to change that. Yahoo! Finance.

February 25, 2018. How Blockchain And Batteries Flipped A Power-Line Developer To Microgrids. Forbes.

February 25, 2018. Crypto gambit a likely bust for Venezuela but a boost for the industry. The Hill.

February 25, 2018. Bitcoin is an energy consuming monster. The Talking Democrat.

February 26, 2018. Rebuttal to Cryptocurrency Causing a Dominant Percentage of Global Warming. The Patriot Post.

February 26, 2018. Cryptocurrency, The Carbon Powered Coins. CryptoDaily.

February 28, 2018. Is Bitcoin a Waste of Electricity, or Something Worse?. The New York Times.

March 1, 2018. Is Bitcoin A Drain On Power — And Productivity?. PYMNTS.com.

March 1, 2018. Japanese to use solar power for Bitcoin and cryptocurrency mining. AMBCRYPTO.

March 2, 2018. The Real Carbon Footprint of Cryptocurrency. The Merkle.

March 3, 2018. How much to mine bitcoin? Mapping the world’s most affordable countries. RT.

March 9, 2018. Here’s how much it costs to mine a single bitcoin in your country. Market Watch.

March 9, 2018. The world cannot afford Bitcoin. Green Left Weekly.

March 10, 2018. Canada-based Energy Company Catches the Bitcoin Bug; Set to Start Bitcoin Mining. BTCMANAGER.com.

March, 2018. This Is What Happens When Bitcoin Miners Take Over Your Town. Politico.

A partial list of articles on Bitcoin electricity use

Because of recent interest in the electricity use of Bitcoin mining, I asked my colleague Zach Schmidt to create a reasonably comprehensive list of articles and reports on this topic.  As we update this list we’ll create new blog posts so that the latest version is usually at the top of the heap on Koomey.com.

Please email me if you see a new article that seems especially well written and authoritative and we’ll add it to the list. There’s precious little credible information on this topic nowadays, but I hope that will change soon. My own summary of the key issues is still in process, but hopefully this list of articles will be of use in the meantime.

The most credible academic estimates are at the bottom of this post. Not surprisingly, the news articles are by far the majority of writing on this topic.

General Bitcoin News Articles/Web sites

January 10, 2018. It Is Silly Season in the Land of Cryptocurrency. The Atlantic.

Bitcoin Energy News Articles/Web sites

April 12, 2013.  Virtual Bitcoin Mining Is a Real-World Environmental Disaster. Bloomberg.

June 29, 2015. Bitcoin Is Unsustainable. MOTHERBOARD.

October 5, 2015. Bitcoins are a waste of energy – literally.abc.net.au.

January 1, 2017. Bitcoin and Energy Consumption; An Unsustainable Protocol That Must Evolve. LinkedIn.

January 7, 2017. Proof of Work Flaws: Ethereum Lays Out Proof of Stake Philosphy. BTCMANAGER.com.

March 7, 2017. A Single Bitcoin Transaction Takes Thousands of Times More Energy Than a Credit Card Swipe. MOTHERBOARD.

March 15, 2017. How Much Energy Does Bitcoin Use? A Lot It Turns Out. SecurityGladiators.

March 30, 2017. Bitcoin Doesn’t Waste Electricity. Hackernoon.

May 16, 2017. The bitcoin and blockchain: energy hogs. The Conversation.

August 20, 2017. China’s Bitmain dominates bitcoin mining. Now it wants to cash in on artificial intelligence. Quartz.

September 28, 2017. The Ridiculous Amount of Energy It Takes to Run Bitcoin. IEEE Spectrum.

October 4, 2017. Why the Biggest Bitcoin Mines Are in China. IEEE Spectrum.

October 5, 2017. How Much Power Does the Bitcoin Network Use?. The Balance.

October 16, 2017. The electricity required for a single Bitcoin trade could power a house for a whole month. World Economic Forum.

October 25, 2017. A Deep Dive in a Real-World Bitcoin Mine. Digiconomist.

October 27, 2017. How Many Barrels Of Oil Are Needed To Mine One Bitcoin?. Huffington Post.

November 9, 2017. Bitcoin’s Exorbitant Energy Costs May Prove to Be Biggest Risk. Bloomberg.

November 15, 2017. “Ludicrous” – Analysts Debate How Much Power Is Consumed per Bitcoin Transaction. Bitcoin.com.

November 24, 2017. Will Bitcoin Consume All The World’s Current Electricity Production By Feb 2020?. Zero Hedge.

November 27, 2017. Bitcoin mining consumes more energy than 159 countries. CBS News.

November 27, 2017. Bitcoin mining consumes more energy a year than Ireland. The Guardian.

December 5 2017. Bitcoin could cost us our clean energy future. Grist.

December 6, 2017. Bitcoin’s insane energy consumption, explained. Ars Technica.

December 7, 2017. Bitcoin Mining Operations Now Use More Energy Than Ireland. Greentech Media.

December 7, 2017. No, Bitcoin Won’t Boil the Oceans. Bloomberg.

December 8, 2017. Bitcoin Mining Outranks Entire Countries in Energy Consumption. BTCMANAGER.com.

December 11, 2017. Bitcoin Mining On Track To Consume All Of The World’s Energy By 2020. Newsweek.

December 13, 2017. Bitcoin energy boom stamps down colossal carbon footprint. Deutsche Welle.

December 14, 2017. Coal Is Fueling Bitcoin’s Meteoric Rise. Bloomberg.

December 15, 2017. The Hard Math Behind Bitcoin’s Global Warming Problem. WIRED.

December 15, 2017. Five myths about bitcoin. The Washington Post.

December 19, 2017. Why the bitcoin craze is using up so much energy. The Washington Post.

December 20, 2017. Bitcoin’s sky-rocketing energy use is a viral story. We checked the math. Public Radio International.

December 21, 2017. No, bitcoin isn’t likely to consume all the world’s electricity in 2020. CNBC.

December 21, 2017. 5 Best States For Bitcoin Mining (and the Worst). Investopedia.

December 30, 2017. THE BITCOIN CRAZE IS USING UP SO MUCH ENERGY. Independent.

January 3, 2018. China Takes Aim At Bitcoin Mining; These 2 Cryptocurrencies Soar. Investor’s Business Daily.

January 4, 2018. Can We Prevent a Global Energy Crisis From Bitcoin Mining?. Greentech Media.

January 4, 2018. Bitcoin’s Cheap Energy Feast Is Ending. Bloomberg.

January 6, 2018. The secret lives of students who mine cryptocurrency in their dorm rooms. Quartz.

January 8, 2018. Bitcoins Should Be Called BTUcoins, and That’s a Problem. Energy Institute Blog.

Technical Estimates

March, 2015. A Cost of Production Model for Bitcoin. The New School for Social Research.

March 29, 2016. Bitcoin Could Consume as Much Electricity as Denmark by 2020. MOTHERBOARD.

June 28, 2016. The Fair Cost of Bitcoin Proof of Work. Social Science Research Network.

March 10, 2017. Electricity consumption of Bitcoin: a market-based and technical analysis. mrb’s blog.

April 17, 2017. Bitcoin Electricity Consumption: An Economic Approach. Digiconomist.

December 9, 2017. The Power Consumption of the Bitcoin Network: Are we destroying the planet?. Google Docs.

Research Reports/Articles

June 26, 2014. Bitcoin Mining and its Energy Footprint. karlodwyer.com.

May 29, 2017. Sustainability of bitcoin and blockchains. Current Opinion in Environmental Sustainability.

A quote about climate change that says it all

“It was in that moment that I realized that if our children look back to how we failed them, it will not have been for lack of scientific understanding or even technological prowess; it will have been due, fundamentally, to cowardice. A profound cowardice among those who actually do have a choice in this matter, a cowardice that confuses arrogance with intelligence, pettiness with importance, and, most fatally, comfort with necessity. “

–Benjamin Franta

After 6 years of working on climate at Harvard, I implore it to show the courage to divest

Right-Sizing Data Center Capital for Cloud Migration

The biggest current problem with data centers nowadays is poor capacity utilization (Shehabi et al. 2016).  The most widely-cited example is that of comatose servers, in which 20-30% of servers in typical enterprise data centers are using electricity but doing nothing useful (Koomey and Taylor 2015). Beyond comatose servers, many more servers are used less than 5% of the year (Kaplan et al. 2008). A related problem is that many servers are far too powerful for the jobs they do, with more memory, processors, and hard drives than they can possibly use productively (I call this “over-provisioning”).

Until recently, this problem of poor capital utilization in the data center has been treated as an unavoidable cost of doing business (Koomey 2014). Most enterprise facilities (which I define as data centers run by companies whose primary business is not computing) suffer from these problems, largely because of institutional failures. For example, in enterprise data centers, the information technology department usually buys the computers but the facilities department buys the cooling and power distribution equipment and pays the electric bills. The business unit demanding the computers doesn’t care about the details, they just want to roll out their newest project. Those departments all have separate budgets and separate bosses, and rarely, if ever, optimize for the good of the company. In many cases, these companies can’t even tell you how many servers they have, never mind what their utilization is (Koomey 2016).

The big cloud computing providers have done a much better job than the enterprise data centers, with far fewer comatose servers, higher server utilization, and better matching of server capabilities to the loads they serve. These providers also track their equipment inventories much more carefully than do traditional enterprise facilities.

Data centers have become increasingly important to the US economy, and many more companies are confronting the massive waste of capital inherent in traditional ways of organizing and operating data centers. An increasing number are moving workloads to cloud computing providers, instead of building or expanding “in-house” data center facilities (Shehabi et al. 2016). As more consider this option, it’s important to understand the steps needed to make such a move in a cost-effective way.

Because of their economies of scale and other advantages, cloud providers can generally deliver computing services at lower costs than is possible in enterprise facilities, but because of poor capacity utilization in existing facilities, just mapping existing servers onto a cloud provider’s infrastructure will not necessarily lead to cost savings.

Consider Figure 1, which shows data from TSO Logic for data center installations of varying sizes, moving from a base case (a traditional data center) to a cloud computing facility, mapping those server “instances” on a one-for-one basis, without changing anything about them.

Server instances can be virtual or physical. In these case these are virtual instances, in which many instances run on a smaller number of physical machines. There are more than 100,000 virtual server instances in this data set.

Each red square represents a single installation (in one case, a single dot stands for five installations). The X-axis shows the number of instances in each installation, ranging from hundreds to almost 35,000. On the Y-axis, I’ve plotted the savings in annualized total data center costs when existing instances are mapped one-for-one onto the cloud, exactly replicating their utilization, the amount of memory, and the number of processors for each instance. These costs include cooling infrastructure capital, electricity, space, amortization, operating system licenses, and maintenance expenses.

Figure 1: Number of instances in each of 15 installations versus % savings to map them one-for-one into the cloud

image

The most important finding from this exercise is that a simple mapping of server instances to the cloud does not guarantee cost savings. In fact, only one third of installations show cost savings when doing such a mapping, with two thirds showing an increase in costs (i.e., negative savings).

The outlier in Figure 1 is the installation with about 2,000 instances and a negative savings (increase in cost) of more than 200% when workloads are mapped one-for-one onto the cloud. This case results from heavily over-provisioned instances combined with very low utilization for the vast majority of them.

Now consider Figure 2, which shows the some of the same data as in Figure 1, but plotted in a slightly different way. On the X-axis, I’ve plotted the percentage reduction in the number of instances in moving from the base case to either the “one-to-one mapping” or optimized cases. In the first case, there is no change in the number of instances, so all of those red squares are plotted at 0% on the X-axis, with the savings in annual costs exactly matching those shown in Figure 1. In the second case, I’ve plotted blue triangles for the optimized mapping onto cloud resources, which in almost every case results in elimination of large fractions of the instances existing in the base case.

Figure 2: % annual cost savings to map 15 installations one-for-one into the cloud, compared to optimizing them and eliminating unused instances before transferring to the cloud

image

Interestingly, the optimized case shows that every one of the 15 installations show significant cost savings compared to the base case, which comes about by eliminating comatose servers, consolidating low utilization servers, and “right sizing” server instances to use the correct amounts of memory and processor power. In all but one example, the optimized case results in the elimination of 60 to 90% of server instances.

For the single example where only about 10% of instances are eliminated in the optimized case (the blue triangle that is far to the left of all the other triangles), cost savings were achieved by “right sizing” the server instances, with only a small reduction in the number of server instances. For this example, optimization turns a 9% cost increase in the “one-to-one mapping” case into about 36% savings, which is mostly due to right sizing of those instances.

It is important to note that the optimized case does not reflect re-architecting software design to better utilize modern computing resources, which can take months to years. This means the optimized case truly reflects the low hanging fruit that can be harvested quickly. Modernizing software design can yield substantial additional benefits.

In addition, the shift to cloud can result in more than cost savings. Modern tools for workloads run in the cloud can speed time to market and increase the rate of innovation (Schuetz et al. 2013). These benefits can swamp the direct cost savings, but are not tallied here.

Summary

Many organizations can benefit by shifting their computing workloads to the cloud, but a smart strategy is to optimize those workloads first before making the switch. The data reviewed here show that such optimization can yield substantial benefits (saving more than one third of annual data center costs) and make it most likely that the shift to cloud will be a successful one.

Gartner estimates that $170B/year is spent globally by business on “data center systems”.[1]  If the shift to cloud computing can reduce these costs by even 25%, that means savings of about $40 billion flowing directly to companies’ bottom lines every year, which are big savings by any measure.

__________________________________________________________________

This report on TSO Logic’s data was conducted by Jonathan Koomey on his personal time. TSO Logic contributed the data (under NDA) and helped explain the data and calculations but did not contribute financially to the creation of this blog post.

[1] Gartner Forecast Alert: IT Spending, Worldwide, 3Q17 Update, 29 September 2017 [https://www.gartner.com/technology/research/it-spending-forecast/]

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References

Kaplan, James M., William Forrest, and Noah Kindler. 2008. Revolutionizing Data Center Efficiency  McKinsey and Company.

Koomey, Jonathan. 2016. “Applying the Scientific Method in Data Center Management.” In Data Center Knowledge. March 9. [http://www.datacenterknowledge.com/archives/2016/03/09/applying-scientific-method-data-center-management/]

Koomey, Jonathan. 2016. “Three Pillars of Modern Data Center Operations.” In Data Center Knowledge. February 2. [http://www.datacenterknowledge.com/archives/2016/02/02/three-pillars-modern-data-center-operations/]

Koomey, Jonathan, and Jon Taylor. 2015. New data supports finding that 30 percent of servers are ‘Comatose’, indicating that nearly a third of capital in enterprise data centers is wasted. Oakland, CA: Anthesis Group.   [http://anthesisgroup.com/wp-content/uploads/2015/06/Case-Study_DataSupports30PercentComatoseEstimate-FINAL_06032015.pdf]

Koomey, Jonathan, and Patrick Flynn. 2014. “How to run data center operations like a well oiled machine.” In DCD Focus. September/October 2014. pp. 81. [http://goo.gl/7sJHZb]

Koomey, Jonathan. 2014. Bringing Enterprise Computing into the 21st Century: A Management and Sustainability Challenge March 17, 2014. [http://www.corporateecoforum.com/bringing-enterprise-computing-21st-century-management-sustainability-challenge/]

Koomey, Jonathan. 2013. “Modeling the Modern Facility.” In Data Center Dynamics (DCD) Focus. November/December. pp. 102. [http://www.datacenterdynamics.com/focus/archive/2013/11/modeling-modern-facility]

Masanet, Eric, Arman Shehabi, and Jonathan Koomey. 2013. “Characteristics of Low-Carbon Data Centers."  Nature Climate Change.  vol. 3, no. 7. July. pp. 627-630. [http://dx.doi.org/10.1038/nclimate1786 and http://www.nature.com/nclimate/journal/v3/n7/abs/nclimate1786.html#supplementary-information]

Masanet, Eric R., Richard E. Brown, Arman Shehabi, Jonathan G. Koomey, and Bruce Nordman. 2011. "Estimating the Energy Use and Efficiency Potential of U.S. Data Centers."  Proceedings of the IEEE.  vol. 99, no. 8. August.

Schuetz, Nicole, Anna Kovaleva, and Jonathan Koomey. 2013. eBay: A Case Study of Organizational Change Underlying Technical Infrastructure Optimization. Stanford, CA: Steyer-Taylor Center for Energy Policy and Finance, Stanford University.  September 26. [http://www.mediafire.com/view/8ema554a2ho9ifj/Stanford_eBay_Case_Study-_FINAL-130926.pdf]

Shehabi, Arman, Sarah Josephine Smith, Dale A. Sartor, Richard E. Brown, Magnus Herrlin, Jonathan G. Koomey, Eric R. Masanet, Nathaniel Horner, Inês Lima Azevedo, and William Lintner. 2016. United States Data Center Energy Usage Report. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-1005775.  June. [https://eta.lbl.gov/publications/united-states-data-center-energy]

Turning Numbers into Knowledge, now out in its 3rd Edition!

At long last, the 3rd edition of Turning Numbers into Knowledge: Mastering the Art of Problem Solving is out!  Official publication date was October 1st, 2017 for the paperback.  The eBook versions (kindle and ePub) will be released on November 1st, 2017.

I first wrote this book to train young analysts I was hiring when I was a Staff Scientist and Group Leader at Lawrence Berkeley National Laboratory. I found that even graduates of the best engineering schools still had a lot to learn about the art of analysis when they came to work for me.  This book teaches them those skills in a readable and entertaining way, and I’ve used it to train hundreds of students and professionals since the first edition came out in 2001.

The book is composed of 39 short chapters, each covering a topic I think is important to beginning analysts. There are lots of quotations, examples, graphics, figures, and some of my favorite cartoons, so you’ll have a few chuckles as you read along.  College students and advanced high school students should have no problem learning from it–the text is well edited and has been honed over the years.

For this edition, I’ve updated many examples, tightened up the text, and made sure the material related to the Internet was fully up to date.

Please email me if you have questions or comments.

Amazon link: http://amzn.to/2xZl6W0

Book link, with supporting files and some sample chapters:  http://www.numbersintoknowledge.com

Paperback ISBN: 9781938377068
PDF ISBN: 9781938377099
EPUB ISBN: 9781938377082
KINDLE ISBN: 9781938377075

My interview on Chris Nelder’s Energy Transition show

Episode 52 of Chris Nelder’s Energy Transition show was posted September 20, 2017, and it features yours truly talking frankly about nuclear power economics, the role of storage, 100% renewable energy scenarios, and limits of economic models, among other things.  I’m pleased to say we achieved a “geek rating” of 8.

Here’s Chris’s description of the show:

It’s the two-year anniversary of the Energy Transition Show, so we thought we’d take a break from the deep dives and just have a little fun skiing around on the surface for a change. Dr. Jonathan Koomey returns to the show for a freewheeling discussion about some of the interesting questions and debates swirling around the energy transition today, and hopefully help us glue together many of the themes that have emerged from our first 51 shows.

How do you go about an energy revolution? Is 100% renewables the right goal? How much seasonal storage will a high-renewables grid need? What will it cost? Is there a future for nuclear power? Or CCS? What should get the credit for declining U.S. emissions?  How do we model the best pathways to a future of clean and sustainable energy? Can the IPCC modeling framework be fixed? What kind of carbon mitigation pathways should we be projecting? And how should we communicate the important messages on climate and energy transition? We tackle all these questions in one big omnibus episode.

The Energy Transition show is a paid subscriber podcast (so not a freebie), but if you are really interested in digging into issues about making a rapid transition to a zero emissions world, you owe it to yourself to subscribe.

Listen to episode 52 here.

Our analysis of the electricity intensity of networks was published last month (Aug 2017)

Our previous work on trends in the efficiency of computing showed that computations per kWh at peak output doubled every 1.6 years from the mid 1940s to around the year 2000, then slowed to a doubling time of 2.6 years after 2000 (Koomey et al. 2011, Koomey and Naffziger 2016).   These analyses examined discrete computing devices, and showed the effect (mainly) of progress in hardware.

The slowing in growth of peak output efficiency after 2000 was the result of the end of the voltage reductions inherent in Dennard scaling, which the chip manufacturers used to keep power use down as clock rates increased (Bohr 2007, Dennard et al. 1974) until about that time. When voltages couldn’t be lowered any more, they turned to other tricks (like multiple cores) but they still couldn’t continue improving performance and efficiency at the historical rate, because of the underlying physics.

Unlike that for computing devices, the literature on the electricity intensity and efficiency of network data flows has been rife with inconsistent comparisons, unjustified assumptions, and a general lack of transparency.  Our attempt to remedy these failings was just published in the Journal of Industrial Ecology in August 2017 (Aslan et al. 2017).  The focus is on the electricity intensity of data transfers over the core network and the access networks (like DSL and cable).

Here’s the summary of the article:

In order to understand the electricity use of Internet services, it is important to have accurate estimates for the average electricity intensity of transmitting data through the Internet (measured as kilowatt-hours per gigabyte [kWh/GB]). This study identifies representative estimates for the average electricity intensity of fixed-line Internet transmission networks over time and suggests criteria for making accurate estimates in the future. Differences in system boundary, assumptions used, and year to which the data apply significantly affect such estimates. Surprisingly, methodology used is not a major source of error, as has been suggested in the past. This article derives criteria to identify accurate estimates over time and provides a new estimate of 0.06 kWh/GB for 2015. By retroactively applying our criteria to existing studies, we were able to determine that the electricity intensity of data transmission (core and fixed-line access networks) has decreased by half approximately every 2 years since 2000 (for developed countries), a rate of change comparable to that found in the efficiency of computing more generally.

The rate of improvement is actually faster than in computing devices, but this result shouldn’t be surprising, because the aggregate rates of improvement in data transfer speeds and total data transferred are dependent on progress in both hardware and software.   Koomey and Naffziger (2016) and Koomey (2015) showed that other metrics for efficiency can improve more rapidly than peak output efficiency if the right tools are brought to bear on those problems.

Email me if you’d like a copy of the new article, or any of the others listed below.

References

Aslan, Joshua, Kieren Mayers, Jonathan G Koomey, and Chris France. 2017. “Electricity Intensity of Internet Data Transmission: Untangling the Estimates”. The Journal of Industrial Ecology:  August.

Bohr, Mark. 2007. “A 30 Year Retrospective on Dennard’s MOSFET Scaling Paper.”  IEEE SSCS Newsletter.  vol. 12, no. 1. Winter. pp. 11-13.

Dennard, Robert H., Fritz H. Gaensslen, Hwa-Nien Yu, V. Leo Rideout, Ernest Bassous, and Andre R. Leblanc. 1974. “Design of Ion-Implanted MOSFET’s with Very Small Physical Dimensions.”  IEEE Journal of Solid State Circuits.  vol. SC-9, no. 5. October. pp. 256-268.

Koomey, Jonathan G., Stephen Berard, Marla Sanchez, and Henry Wong. 2011. “Implications of Historical Trends in The Electrical Efficiency of Computing”.  IEEE Annals of the History of Computing.  vol. 33, no. 3. July-September. pp. 46-54. [http://doi.ieeecomputersociety.org/10.1109/MAHC.2010.28]

Koomey, Jonathan. 2015. “A primer on the energy efficiency of computing.”  In Physics of Sustainable Energy III:  Using Energy Efficiently and Producing it Renewably (Proceedings from a Conference Held March 8-9, 2014 in Berkeley, CA). Edited by R. H. Knapp Jr., B. G. Levi and D. M. Kammen. Melville, NY: American Institute of Physics (AIP Proceedings). pp. 82-89.

Koomey, Jonathan, and Samuel Naffziger. 2016. “Energy efficiency of computing:  What’s next?” In Electronic Design. November 28. [http://electronicdesign.com/microprocessors/energy-efficiency-computing-what-s-next]

Our newest work on comatose/zombie servers, out this week

One of the most surprising things about the data center industry is how cavalier it is about the number of servers sitting around using electricity but doing nothing.  We call such servers “comatose”, or more colorfully, “zombies”.

In 2015 we did our first study of this issue using granular analysis on a small data sample (4000 servers) for a six month period in 2014, using data from TSO Logic.  Now we’re back with a sample four times bigger, covering six months in 2015, and with additional detail on the characteristics of virtual machines.

My colleague at Anthesis, Jon Taylor (with whom I conducted the study) wrote up a nice summary of the work here. You can also download the study at that link.

Here are a few key paragraphs:

Two years on the data set from which the original findings were drawn has grown from 4,000 physical servers to more than 16,000 physical servers and additional information on 32,000 virtual machines (VM) running on hypervisors. The new findings show improvements, as well as an alarming wake-up call.

On the upside: when an enterprise acted to remove physical zombie servers when presented with evidence of the problem’s magnitude, they were able to reduce the amount from 30 percent to eight percent in just one year. On the downside: new data show that some 30 percent of VMs are zombies, demonstrating that the same discovery, measurement, and management challenges that apply to physical servers also apply to VMs.

The study confirms that the issue is still not being adequately addressed. New data indicates that one quarter to one third of data center investments are tied up with zombie servers, both physical and virtual. Virtualization without improved measurement technologies and altered institutional practices is not a panacea. Without visibility into the scale of these wasted resources the problem will continue to challenge the data center industry.

Here’s a key graph from the report:

There are some complexities in comparing the new data with the older data, because one facility in the 2014 sample decided not to allow its data to be used for the 2015 sample.  The remaining facilities in the 2014 sample, when shown evidence that one third of their servers were comatose, took action and moved from more than 30% comatose to 8% comatose in just one year.

We corrected for these changes in an attempt to estimate the percent of comatose servers for enterprises that haven’t dealt with the problem, and the result is an estimate that about one quarter of servers in such companies are comatose (see the middle bar of the figure above).

Surprisingly, the percentage of virtual machines that were comatose was about 30% (see the right most bar above), indicating that the same management failures that lead to high percentages of comatose servers also afflict virtual machines. Virtualization without institutional changes is not a panacea!

One new issue raised in the latest report is important but often overlooked.  Zombie servers are likely to not have been updated with the latest security patches, so they present a potent risk to the safety of the data center. Find them and remove them as soon as you can!

Is natural gas the main driver of declines in coal generation in the US?

The US EIA Monthly Energy Review (Table 7.2a) includes data on net generation for the US (utilities plus independent generators), and from those data we can say something interesting about what was driving declines in coal generation from 2015 to 2016.  The conventional wisdom is that cheap natural gas is the main driver of this decline, but that’s not true, at least in the 2015 to 2016 time frame.

I downloaded the data from the EIA web site, and converted the net generation numbers to billion kWh (equivalent to terawatt-hours) in my excel workbook.  I then calculated the change from 2015 to 2016 and combined pumped storage hydroelectricity with conventional hydro.

The net result is shown in the following figure:

The graph shows that natural gas was responsible for offsetting about 40% of the total decline in coal and petroleum generation, but that wind plus solar displaced about the same amount.  So natural gas is an important part of the story, but the other alternatives (including nuclear and hydro) are in the aggregate more important.  With the recent exponential increases in installed capacity of solar and wind, they are destined to become much more important in short order.

It is not clear to me whether the growth in rooftop solar generation is included in these numbers. I know that EIA has been working to get better data on that sector, but sometimes the data gears churn slowly. If you can answer that question, please contact me!

Another important factor not accounted for here is that net generation and electricity consumption in the US has been flat since 2007 (Hirsh and Koomey 2015), which indicates decoupling between electricity demand and GDP.  In the years since the mid 1990s this decoupling has been pronounced, while from 1973 to the mid 1990s electricity consumption grew in lockstep with GDP.

GDP has grown about 2%/year on average since 2010, and if we apply that 2% to net generation in 2015 we can estimate that electricity demand is about 80 B kWh lower than it would have been without that decoupling. That shift in demand (which is a function of both efficiency and structural change) is bigger than any of the other single contributors to changes in generation in the figure.  For more discussion of these issues, see Hirsh and Koomey 2015.

Reference

Hirsh, Richard F., and Jonathan G. Koomey. 2015. “Electricity Consumption and Economic Growth: A New Relationship with Significant Consequences?”  The Electricity Journal.  vol. 28, no. 9. November. pp. 72-84. [http://www.sciencedirect.com/science/article/pii/S1040619015002067]

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Koomey researches, writes, and lectures about climate solutions, critical thinking skills, and the environmental effects of information technology.

Partial Client List

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