Analytics is being used in data centers, buildings, and municipalities to provide streamlined, proactive services. The deeper understanding of daily operations that analytics provides enables companies and governments to address problems that stretch across their systems, and makes it easier for them to simplify infrastructures and reduce costs.

1. On the Path to a Smarter World
Introduction: Analytics plays an increasingly important role in the daily operations of data
centers, businesses, building controls and governmental agencies worldwide. This paper
discusses some of the ways IBM solutions are making this happen.
Contents
Smart meters and smart grids ...................................................................................................................... 1
Smarter datacenters ..................................................................................................................................... 2
Smarter buildings .......................................................................................................................................... 3
Smarter cities ................................................................................................................................................ 3
Optimized cities, buildings and data centers ................................................................................................ 5
IBM analytics ................................................................................................................................................. 6
----------- © 2011 Ptak, Noel & Associates LLC -----------

2. On the Path to a Smarter World Page 1
Analytics is being used in data centers, buildings, and municipalities to provide streamlined, proactive
services. The deeper understanding of daily operations that analytics provides enables companies and
governments to address problems that stretch across their systems, and makes it easier for them to
simplify infrastructures and reduce costs.
Early adopters of analytics – both companies and governments – are already getting significant value
from such tools, achieving visible results in areas such as infrastructure simplification and cost-
reduction. Just as importantly, the insights they have drawn from their new ability to examine data are
identified as significant contributors to both growth and innovation.
Data centers now build efficient technology roadmaps that can be adjusted in real time to meet the
changing demands of the businesses that they serve. Businesses can address problems that span even
the largest enterprises. Buildings use power and cooling more efficiently. Public utilities improve
operations by increasing the life of expensive assets, and by dispatching work crews when they are
needed and providing them with optimized routing. Police departments anticipate public safety issues
before they happen, and address them proactively rather than simply responding to problems as they
occur. Other operational groups deploy solutions more rapidly and are able to drive a greater return on
project investment through streamlining operations and through improved asset reuse.
Data centers, buildings, and even cities have become, at last, smart. Companies prosper, consumers see
lower costs, and public safety improves.
How is this happening?
Smart meters and smart grids
Companies have been gathering data for decades. Until recently, much of that data has done
little more than collect in boxes or on computer tapes. Today, new technologies – smart meters
and smart grids – provide a different category of data: real-time data streams. The ability to
collect, analyze and act on real-time data stream opens up new opportunities for controlling
and optimizing environments in a broad spectrum of environments including data centers,
commercial buildings, and even homes.
Today smart meters measure, collect and analyze
data on electric, gas, heat and water use. They differ
from more traditional meters in two important
aspects. First, they interact with thermostats and
other electric appliances in home area networks,
both reporting on changes and, increasingly,
managing the smart devices as well. Second, this
two-way digital communication between the
consumer and the utility takes place in real-time,
----------- © 2011 Ptak, Noel & Associates LLC -----------

3. On the Path to a Smarter World Page 2
providing the utility with
information that is always
Optimizing Operations current so it can track changes
in demand (amongst other
CenterPoint Energy, one of the largest combined electric and natural gas
things) and make changes
delivery companies in the US, needed to streamline their operations so as to
provide services in a more efficient manner to their 5 million customers. before problems occur.
Previously, the company would routinely dispatch field staff to read meters
and record information at residences and businesses, a method that was This network of smart meters
inefficient both in its use of personnel and because the data that was
available was often several days out of date. They wanted a more advanced connected to a central control
meter reading system that could simultaneously reduce management point overlays the public
workloads and provide usage data more easily and in a more timely utility electrical grid with an
manner.
information system, and is
In 2008, CenterPoint installed 10,000 smart meters, which transmit data on termed a "smart grid". With
energy usage back to the central office in real time. At the same time, they this in place, information on
implemented a comprehensive, end-to-end meter monitoring and conditions is immediately
management system based on IBM technology. This provided the utility
available to system users,
with a centralized monitoring system that gives insight into both consumer
usage and the general health of the network, and which provided an operators and automated
accurate view of the customer experience. The company further leverages devices, making it possible to
its smart grid by remotely activating and terminating service without the respond dynamically to
need to dispatch field teams.
By automating the data collection and service activation processes, the changes in grid conditions.
utility has cut operating costs, reduced the number of employees needed in This in turn enhances the
the field, and has achieved faster problem resolution and, as a consequence, ability of both consumer and
higher customer satisfaction levels. Using insights gained from its
utility provider to save energy,
improved meter reading capabilities, CenterPoint is making more informed
decisions regarding its daily operations, and has an information base on reduce cost and increase
which you can develop new products and services. reliability.
Smarter datacenters
Moving IT service into the cloud represents a profound shift
in the IT consumption model, with users accessing services
only when they are needed and paying only for the services
that they use. This "utility" model, which closely parallels the
on-demand model seen in the public utilities sector, is highly
efficient if service providers can ensure that necessary assets
will be available when needed. Providers of cloud-based
services need to make sure their infrastructure supports this
on-demand environment so they can deliver contracted
----------- © 2011 Ptak, Noel & Associates LLC -----------

4. On the Path to a Smarter World Page 3
service levels to their customers in an optimal fashion.
IBM Tivoli provides a broad set of intelligent management solutions that incorporate predictive
analytics to help managers align IT operations to business priorities. IBM Tivoli Monitoring, IBM
Tivoli Netcool/OMNIbus, IBM
Tivoli Network Manager, and IBM
Tivoli Business Service Manager Retrofitting a Building for Improved Power Efficiency
are now enabling the shift from
A good example of retrofitting to improve power use and energy
traditional reactive IT efficiency can be found at IBM's facility in Rochester Minnesota, an
management techniques to the extremely large interconnected complex of 35 office buildings that
proactive management that covers 3.2 million square feet, and which houses test labs,
manufacturing facilities and a worldwide data center. Complementing
service providers need in order to conservation initiatives that were already in place, IBM retrofitted the
ensure contracted service levels existing workplace to make smarter buildings by installing high-
to their subscribers. efficiency instrumentation and advanced sensor and metering
technology. A common data repository consolidates data from the
building management system, from electrical meters, from advanced
Smarter buildings asset management software, and from outdoor temperature and humidity
gauges. For example, the company integrates information from 87 of the
Both economics and site’s largest and most heavily used air handling units, as well as
information about lighting and perimeter heating in three buildings.
environmental pressures drive the
Facilities managers get immediate insight into valve and damper
need for increasing energy positions (are they open or closed?), motor operations, temperature and
conservation in the world's speed, and other equipment and environmental parameters.
buildings. New facilities are being
built to take advantage of deep Next, the company applies IBM data analytics and optimization
software to measure and record operational performance against a set of
analysis of real-time data flows in rules they have already defined, highlighting variances as they occur. If
order to moderate power and other a variance is detected, a service request is automatically generated and
utilities usage to maximize appropriate personnel are notified.
operational efficiency. But
corporations don't have to build So far, results are impressive. Energy consumption and carbon
emissions have been reduced an estimated 5% year-over-year. Annual
new structures in order to become
equipment operating costs have been reduced by 8%. Asset reliability
more energy-efficient. and lifespan has been improved. Staffing operational costs have
decreased due to streamlining the identification, diagnosis and
resolution of problems. Equipment is more reliable and lasts longer, and
Smarter cities
staff operates more efficiently. As a result, the current phase of the
project is being expanded to include operational data from a total of 254
Cities all over the world are using
air-handling units. Future phases will incorporate data from hundreds of
real-time data collection and other facility assets, including boilers, compressors, chillers, pumps,
predictive analytics, making steam traps and air cooling towers.
themselves smarter, safer, and
more efficient. They do this by
leveraging information to make better decisions, to anticipate problems and to resolve those
----------- © 2011 Ptak, Noel & Associates LLC -----------

5. On the Path to a Smarter World Page 4
problems proactively. As a result, they are able to coordinate resources so that they can
operate more effectively.
Many cities apply IBM’s deep analytics to data from several sources: real time data streams,
existing repositories of structured data, and large amounts of unstructured data (records of
emails, videos and chat room interactions) that until now could not have been analyzed within
the context of other available information.
Applying statistical data exploration and machine-learning techniques to large datasets of
historical information –
including even seemingly
innocuous variables such as
Smarter Cities the World Over
weather conditions – they
Cities and metropolitan districts worldwide are adding intelligence to their can then use advanced
operations in order to deliver improved services faster and with greater dashboards and data
efficiency. For example:
visualization techniques to
Washington, DC uses customer and usage analytics, work management help them uncover previously
analytics, predictive maintenance analytics, and automated project and hidden relationships within
work crew scheduling to ensure its sewer department delivers services the disparate data, which in
efficiently, maintains equipment and pipes, and dispatches repair teams and
equipment in an optimal manner. This includes predicting failures (and thus
turn allows them to uncover
minimizing outages), predicting demand, optimizing the way assets are hidden patterns,
used, and anticipating customer behavior. Results include improvements in associations, correlations and
revenue forecasting, capacity planning, emergency response, use of work
trends, and to anticipate
crews, and strategic planning, to name only a few.
events.
The City of London in the UK uses analytics in the area of public safety. It
takes streaming data from traffic control and other cameras, adds that to
Many cities have gotten
data already on hand from a variety of sources (police data, of course, but
smarter and safer by using
also traffic control information and weather data, plus a wide variety of
analytics to analyze crime
unstructured data such as emails and other monitor traffic), and applies
patterns,
deep analytics to understand relationships between disparate data sets and giving their
as a result, to either improve response times to emergencies or, in some
agencies have real-time
cases, to preempt emergencies altogether. As a result, they can better
information and improved
predict hotspots and crime trends, can deploy resources proactively, and
make for generally safer communities. situational awareness. A
city’s operational groups can
better predict hot spots,
identify crime trends, and
plan for impending emergencies. Police can now view and observe crime as it happens, and
can review surveillance video in response to incident reports. By reviewing the volumes of data
collected on incidents the departments are improving efforts in resolving false allegations, are
----------- © 2011 Ptak, Noel & Associates LLC -----------

6. On the Path to a Smarter World Page 5
getting deeper insight into unsolved crimes, and have more success identifying possible
suspects.
More efficient deployment of municipal resources and faster response times when problems do
occur are the most obvious result, but even more important is the fact that being proactive in
the way municipal services are dispatched saves lives and helps cities build safer communities.
Optimized cities, buildings and data centers
Managers of cities, buildings and data centers apply
analytics to their business needs because it gives
them the chance to move from traditional reactive
management models and take a more proactive
approach, one that lets them preempt problems
rather than resolving them, and that helps them
identify and plan for opportunities rather than just
waiting for them to appear. Day-to-day operations
easily feed into the strategic planning process.
Available data strongly indicate that companies employing analytics are measurably more
efficient than those companies that do not,1 and are much further along on their road to
business optimization. Such organizations are able to improve their competitiveness because
they can:
Optimize the use of limited resources
Improve the efficiency of operations, and thus reduce costs
Plan proactively, rather than reactively
Implement dynamic workload scheduling
Increase visibility to assets and operations
Fix things before they break
Predict what will happen before an event actually occurs.
1
IBM research: Breaking Away with Business Analytics and Optimization: New intelligence
meets enterprise operations at
http://public.dhe.ibm.com/common/ssi/ecm/en/gbe03263usen/GBE03263USEN.PDF
----------- © 2011 Ptak, Noel & Associates LLC -----------

7. On the Path to a Smarter World Page 6
IBM analytics
IBM is driving analytics research and development in all of these areas. In addition to the
products mentioned in this paper, IBM analytics solutions also include:
SPSS One of the most widely used group of solutions for predictive analytics and
statistical analysis;
Cognos Business intelligence solutions;
Netezza A provider of appliances and advanced analytics used in data warehousing, business
intelligence, predictive analytics and business continuity planning;
InfoSphere A platform for data warehousing, information integration, data management and
big data analytics.
This white paper was sponsored by IBM.
Publication Date: November 3, 2011
This document is subject to copyright. No part of this publication may be reproduced by any method whatsoever
without the prior written consent of Ptak Noel & Associates LLC.
To obtain reprint rights contact associates@ptaknoel.com
All trademarks are the property of their respective owners.
While every care has been taken during the preparation of this document to ensure accurate information, the
publishers cannot accept responsibility for any errors or omissions. Hyperlinks included in this paper were available at
publication time.
About Ptak, Noel & Associates LLC
We help IT organizations become “solution initiators” in using IT management technology to business problems. We
do that by translating vendor strategy & deliverables into a business context that is communicable and actionable by
the IT manager, and by helping our clients understand how other IT organizations are effectively implementing
solutions with their business counterparts. Our customers recognize the meaningful breadth and objectively of our
research in IT management technology and process.
www.ptaknoel.com
About the Author
Mike Karp is Vice President and Principal Analyst at Ptak/Noel, an industry analyst and consultancy firm, where he
leads the infrastructure analytics and storage management practices. He focuses on issues associated with driving
efficiency into IT operations, and has a particular interest in how technology intersects with business operations.
----------- © 2011 Ptak, Noel & Associates LLC -----------