Green Data Centres Becomes the Primary Focus of SAP Cloud Strategy

CIO Review Europe | Friday, July 22, 2022

SAP's cloud strategy, such as green cloud solutions and services, is concentrating on green data centres, helping to considerably reduce adverse effects on the environment and achieve sustainability goals.                                                                                                                         

FREMONT, CA: According to the International Energy Agency (IEA) report, the amount of electricity consumed by data centres has remained constant over the past decade, although internet traffic has massively increased. This is due to businesses' decision to shift from small, less efficient data centres to more efficient servers and infrastructures.

The Cloud is the Key

To enable customers' digital transformation, SAP launched RISE with SAP cloud solutions and services in early 2021. This helped to simplify the transition to the cloud for customers. This new solution has brought a positive response and accelerated the company's cloud growth. SAP is anticipating generating 22 billion euros in cloud revenue by 2025. Currently, SAP is working with the four largest hyper-scale providers dominating the cloud market.

SAP Cloud clients may opt to use one of SAP's data centres, a co-located data centre, or one or more hyper-scale data centres depending on the solutions. SAP started the Next-Generation Cloud Delivery Initiative to expand its cloud software infrastructure, which is expected to be completed in 2022.

This initiative is aimed at amalgamating the infrastructure and various platforms that SAP currently has. They are moving the customer software to a state-of-the-art environment that can be used by new customers from day one. SAP is also modernising and updating its infrastructure to advance in the future and provide efficient service-level agreements to its customers. Existing cloud clients are shifted to the new environment during normal maintenance windows. Once the next-generation cloud delivery initiative is completed, SAP will administer it in a unified domain on their cloud and strategic hyperscalers.

Significance of Green Data Centres

As more customers shift to the cloud, the role of data centres is significantly increasing in facilitating solutions to them and consequently, in the sustainability strategies of the customers. Processors, memory, storage devices, and cooling systems are required to administer solutions in SAP data centres and use cloud solution transactions regularly. These devices require water and electricity, which results in carbon emissions. Additionally, it also generates electrical and electronic waste. Customers must frequently indicate this energy consumption and other metrics in their sustainability report.

Since 2014, SAP has powered all of its facilities using renewable electricity, including its own externally co-located data centres. To ensure its use of hyper-scale data centres is carbon neutral, regardless of the sustainability strategy offered by the provider, SAP generates renewable electricity in specific SAP locations across the world.  It also invests in high-quality and EKOenergy-certified energy attribute certificates. These initiatives contribute to SAP’s solutions to become carbon neutral by 2023 and eventually achieve net-zero along the entire value chain. To attain this goal, SAP is focusing on a three-pillar approach, avoid, reduce, and compensate. Customers can also take advantage of SAP's green cloud solutions and services to considerably minimise their carbon emissions and support their sustainability initiatives.

White Paper to Make Data Centres Green

Clients frequently enquire about measures to reduce the environmental effect of SAP cloud products. Green data centres enable customers to turn their whole value chains more sustainable. This is effectively carried through a new SAP white paper.  It details the industry standards and practices followed by SAP global cloud services data centre management team to design, operate, and decommission SAP data centres worldwide. This is also practised to ensure a sustainable life cycle. Additionally, the white paper offers a basis for the next rational procedures to construct cloud performance greener. 

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