by DavidSpratt | Feb 7, 2018 | ICT
Last week the IT industry was shocked to find that the Intel chipsets that drive many of our phones, smartphones, laptops, desktops and our servers, have an architectural flaw that exposes them to hacking. The other two major chipset manufacturers AMD and ARM appear to be much less affected.
By patching their operating systems to address this design flaw in the Intel chipset the OS providers have been forced to sacrifice the thing that impacts us most, performance. The numbers aren’t out yet but we could be seeing reductions in performance of between 5% and 30%.
For the average user, even a 30% reduction in performance on their laptop or smartphone might not have any discernible impact. Most of us don’t use even a fraction of the capability of our machines and with the consumption of cloud software services such as Office 365 the compute power is in the cloud anyway. But herein lies the problem…
Cloud Service Providers (CSP’s) like Microsoft, Google and Amazon are massive consumers of high-intensity computing power. Every day they wrestle with optimising the cost and performance of their infrastructure environments to deliver to their own and their customers’ needs.
CSP’s have been the first to implement the security patches on their servers, as you would expect from responsible global providers. This is where a 30% performance reduction really hurts. My guess is that their systems architects have been in a right state of panic about how to address the possibility of significant performance degradation unless loads of new equipment is installed in a hurry.
What does this mean to you, the business user of cloud services?
The future performance, and thus the relative cost, of chipsets, will also likely change for the worse in the short to medium term. The security flaw I mentioned earlier was based on the need for manufacturers to make chipsets run faster. This design is now no longer acceptable from a security perspective and will have to change somehow. It will take time for them to come up with a new solution. In the meantime, all those performance/price gains we have come to expect in the past will be very hard won indeed. Expect increases in prices for Intel-based computers and some smartphones.
Expect to see cloud services prices rise as CSP’s move to recover their increased infrastructure overheads both current and into the future
There is little we can do in New Zealand to force a better deal from the big multinationals. Local providers like Datacom and Revera are subject to price/performance challenges as much as the next company and are unlikely to welcome requests for better pricing.
What you can do, though, is to manage cloud computing costs by addressing the issue of consumption through closely monitoring when and how you use cloud computing infrastructure. Microsoft and Amazon both now provide options for paying a lower price for guaranteed future consumption. There is also the option available to purchase services on the spot market. Discounts in this market can be as high as 90% but you must know what you are doing because spot markets go up and down based on demand.
Monitoring and then actively managing cloud consumption requires experience and skill. Rather than trying to do it yourself, you should consider using the services of a utility analytics firm. This will help inform the decisions you make, directly tie cloud computing cost savings to the activity and will allow you to focus on the business at hand rather than on what can be a rapidly changing and complex computing marketplace. Total Utilities has the tools and expertise to deliver real insights and recommendations to help optimise your cloud consumption and cost. For more info click here or contact us today.
by DavidSpratt | Dec 18, 2017 | ICT
Last year I compiled a satirical list of ICT companies that won or lost the battle for the affection of us ICT brokers for businesses. The response was a mixture of simpering sweetness and hate mail (you know who you are).
Nevertheless, I’m doing it again this year, in this article.
To my colleagues who I offend in the next few hundred words, I apologise for my ill humour, even if you have been the authors of your own destruction.
ICT Winners and Losers (a satire)
The Coolest Kids in Town Award: Kordia
Who would have thought that Kordia — formerly government-owned BCL with its unwashed hoard of nerds in walk shorts, sandals, long socks and straggly beards — would have transformed itself over a single decade into the ultra-cool company it is now?
Delivering superb, Ultra-Fast Broadband innovation at impressive price/performance levels and showing market leadership in emerging technologies such as the Internet of Things-enabler Sigfox, it seems maybe geeks can fly after all.
The How Many Fingers am I Holding Up? Award: 2 Degrees
It seems only a year or two ago that 2Degrees offered great coverage to the major cities and a big finger to the provinces.
Millions of dollars and a heck of a lot of hard work later, they now offer something resembling decent coverage at a very competitive price. A player to watch in 2018.
The Spurned Lover Award: Spark Marketing
Please, please, please Spark will you stop telling us how crap you were and how things will get better now that you have sacked half your staff. When all you have left are excuses for your bad behaviour and pleas for forgiveness, maybe it’s time to make a break with the past and move on.
In truth you are damn good at the things that matter and most of us love buying off Kiwi companies (see Kordia and Datacom).
The People’s Choice Award: Datacom
For those of you who have nothing but bad things to say about these guys I have two questions: “Where do the vast majority of the most respected and admired ex- Gen-i and Computerland people work now?” and, “Which other Kiwi success story has grown at over 11 per cent year-on-year for over a decade, while competing head to head against some of the world’s smartest and most successful multi-nationals?”
Datacom has proved, to the tune of $1.2 billion a year in revenues, that people buy off people, even if most of them have grey hair poking out their noses and ears.
The Comeback Kid Award: Samsung Galaxy S8
The best thing since the Nokia flip phone. Great camera, features and battery life. Pity people still think twice before putting it in their pocket.
The Lone Ranger Award: People still investing in DIY IT infrastructure
The No 8 wire mentality that you were so proud of in the 90s is now just a sign of your desire to control everything at the expense of business flexibility.
We know you want to prove that you are more intelligent than everyone else, but have you noticed that the guy who pays your wages and conducts your annual salary review has stopped putting you in front of the business and has informally renamed your section “The Department of No”?
That roaring sound is the jet engine that is public cloud departing with your career prospects.
The Hottie of the Year Award: Samsung Note 7
I was so proud when I took you out of the box and stroked your luscious lines. The screen definition, the camera, the selection of cool software: you made me truly happy for a while.
Then there was the smoke, the heat, the burning sensation in my pocket…has anyone seen the fire extinguisher? Oh, the humanity!
Merry Christmas readers. Talk in the New Year.
David Spratt is a director of Total Utilities. Email [email protected]
by chris | Dec 12, 2017 | Energy
The following was published in the NZ Herald 25th of November 2017 and includes energy tips from Total Utilities’ own Pushkar Kulkarni who reveals how leaking air wastes money.
Four energy experts offer top tips to save money
Running an air-conditioning unit at full tilt to cool down one part of a building, while a boiler blazes away to heat another part of that same building, sounds like madness – but it’s surprisingly common in New Zealand’s commercial buildings.
It’s just one of the ways businesses are squandering energy, and therefore money, in the course of their day-to-day operations.
The Energy Efficiency and Conservation Authority (EECA) say many businesses could shave up to 20 per cent off energy costs – with the potential energy efficiency savings adding up to $900 million a year across all New Zealand businesses by 2030, if all economic options are adopted.
The good news is many of the fixes are inexpensive, immediately effective and boast short timeframes for return on investment. Some even cost nothing. According to some of the market’s energy efficiency experts, here are some of the most common ways businesses are wasting energy.
Poor energy monitoring
Simon Ross, mechanical engineer, Beca: “People leave their buildings running when there’s no one in them. The warm-up cycles also often start way too early in the mornings – and no one is even aware of it.”
Ross says monitoring energy use identifies where it is being wasted and quickly clarifies a plan of attack. It’s a classic case of not being able to manage what hasn’t been measured.
“Once you’ve measured it, it then makes sense to compare your energy usage to others in your industry – to benchmark it.”
Ross points to Beca’s benchmarking of electricity use of Christchurch schools: “When a school can see where it sits relative to another school then they can see the value in reducing their energy usage. Until you give them data to show where they sit, they’re basically only able to compare with how they’ve performed historically – which might be good, or terrible.”
EECA Business has its Energy Management Journey tool set up for precisely this purpose. It’s a free online tool where users input energy usage data, then find out how they’re doing compared to similar businesses. Find out more at https://www.eecabusiness.govt.nz/tools/energy-management-journey
Leaking Air
Pushkar Kulkarni, business manager sustainability solutions, Total Utilities:
“Many companies invest in a new air compressor but may not make an effort to find the leaks in the system first. If all of those leaks are found and fixed, they may conclude there is no need to invest in a new compressor.”
Kulkarni sees this scenario on a regular basis. He estimates eight out of every 10 systems could be leaking air.
“These systems are very common in New Zealand – particularly in the industries of production, packaging, food processing, waste, yarn and pharmaceutical production. Over time they may deteriorate or be modified and start leaking air. They can be expensive to run, so the savings from identifying and fixing leaks can be considerable. It’s usually a fairly inexpensive fix with a fast return on investment.”
Uninsulated pipes
Glenn Johnston, Smart Power: “If it’s an exposed pipe in a warm boiler room it’s not as bad but, if that pipe runs outside or through the roof space where it’s a lot colder, the heat loss can be substantial.”
Johnston is used to seeing money go down the drain in the form of energy escaping from uninsulated pipes, used for both heating and cooling.
“Industries where it’s important to insulate pipes include the likes of food processors, hospitals, freezing works, packaging plants – anywhere they have refrigeration or hot water needs.”
Often these pipes are easier to get to than in commercial buildings, making repairs easier and cheaper. Johnston cites the example of a plant his company worked on. The company beefed up insulation of steam and hot water equipment. A $20,000 investment turned into an annual saving of some 250,000kWh, or $11,000, giving a payback period of just 1.9 years.
“When you insulate pipes properly you get an immediate impact,” says Johnston.
Heating and cooling systems fighting each other
Alastair Hines, divisional manager, Enercon: “Heating and cooling systems are often working at the same time. Nobody worries about it too much, because it’s the norm.”
Hines points to one business which Enercon found many of the heating, ventilation and air-conditioning (HVAC) and lighting systems were operating 24 hours a day, seven days a week, even when not required. The HVAC systems also did not have an air temperature dead-band to prevent frequent switching from heating to cooling and vice versa.
That resulted in increased demands on the system and adjacent zones simultaneously heating and cooling.
Hines says this happens in many commercial buildings, typically because the building is poorly controlled. He estimates 10-20 per cent of the energy used for heating and cooling in a building is wasted.
“When you consider heating and cooling account for up to 50 per cent of the total cost of running it, that 10-20 per cent can be a big saving. Adding sub-meters, sensors, and re-programming the building management system all make a big difference.”
A treasure trove of information about how businesses can save energy is available on www.eecabusiness.govt.nz, or find an energy management expert in the Programme Partner directory.
by chris | Dec 7, 2017 | Case Studies, Energy, Panoramic Power
Pushkar Kulkarni from Total Utilities completed the site review and NABERSNZ Assessment of Watercare House. Here he provides additional commentary to the original published case study, highlighting the specific benefits of a NABERSNZ tenancy rating.
“A NABERSNZ tenancy rating is an ideal tool for tenants as it shows them how their day to day operations impact their energy performance. It can also determine how well they manage energy and identify the opportunities that may exist to improve energy performance.
In an increasingly competitive market place and businesses look for a point of difference by delivering on their corporate and social responsibility, and think about long term business sustainability, tools like NABERSNZ are a good demonstration of their willingness to “walk the talk”. It reflects where they are now with respect to others and what benefits they can get by improving their NABERSNZ rating. I definitely feel that ratings will become increasingly important in New Zealand.
Equipment directly impacting the tenancy rating of Watercare are: lighting, computers, and client specific plug load etc. They are limited to what they can do with the lighting connections and zoning due to way in which these were originally designed. This has had an impact on the rating. If a NABERSNZ rating was a factor that developers and contractors were informed of during the design/build stage, then there is good chance that the lighting connections and zoning may have been designed differently.
In my opinion the occupancy density, clever use of all areas, and using lighting controls are the main factors that have resulted in a 4-Star NABERSNZ tenancy rating for Watercare. The rating demonstrates it’s a very good start and platform for Watercare to understand where they are at compared to the wider market and examine strategies on how they can improve going forward.”
Scoring a first-rate NABERSNZ 4-star tenancy rating for energy consumption at its office demonstrates an Auckland company’s commitment to the environment.
Auckland water provider Watercare Services Limited is the anchor tenant in an eight-level office block constructed in bustling Newmarket in 2013.
73 Remuera Road is the first Green Star rated commercial property in the district and reflects the growing demand from corporate tenants for green principled, energy smart work spaces.
Watercare occupies three of five office floors in the building.
Key Facts
- 4-star ‘excellent’ NABERSNZ tenancy rating
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Energy use certified as 97.6 kWh/year/m2
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NABERSNZ to be used at other sites
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Further energy upgrades continue
Big Numbers
- 2013 – achieves a 5 Green Star Design rating
- 2015 – achieves a 5 Green Star Built rating
- 2016 – achieves a 4 star NABERSNZ tenancy rating
- Energy use certified as 97.6 kWh/year/m2
- Total energy consumption 738,454 kWh/ year
Building Profile
Location: 73 Remuera Road, Newmarket, Auckland
Owner: Viewmount Orchards Limited
Anchor Tenant: Watercare Services Limited (approximately 300 employees on site on an ordinary day)
Accolades:
- 5 Green Star Design (Achieved 2013)
- 5 Green Star Built (Achieved 2015)
- NZ Property Council Award – Commercial Office Property Best in Category Award 2015
- NZ Property Council Award – Green Building Property Merit Award 2015
The Anchor Tenant
Watercare is an Auckland Council owned organisation (CCO) providing water and wastewater services to Auckland and its environs. It is committed to the sustainable management of natural resources and energy saving operations. The Auckland Council has two additional NABERSNZ rated premises – the Manukau Civic Building (3 star whole building, 2014) and Orewa Service Centre (3.5 star whole building 2016).
watercare.co.nz
The Building/Facilities Manager
FM Concepts Limited is an Auckland-based commercial property management firm which focuses on medium to large high rise buildings and offers a full range of services including onsite operational management, property consultancy, contract management, health and safety systems and cost management. It has a strong interest in the sustainability of the built environment and energy efficiency. Two commercial buildings in its portfolio are currently undergoing NABERSNZ ratings.
fmconcepts.co.nz
Key Sustainable Features
- Located within easy walking distance of train and bus networks – encourages sustainable transport options for occupants
- High-tech building controls and management system with real time monitoring
- Energy efficient heating, ventilation and air conditioning system (HVAC).
- Double glazed façade
- LED lighting
- Well-designed waste collection and recycling area
- End of trip facilities – gym, cycle park and locker facilities
This property is a brownfield redevelopment – its construction has improved an existing dilapidated area and makes a positive contribution to a sustainable Auckland.
Why NABERSNZ?
With water being its core business Watercare has the environment and energy issues at the top of its agenda.
While its head office is housed in Green Star rated Watercare House the company’s sustainability manager Roseline Klein says the company wanted to understand its everyday energy performance across the three floors it occupies in the building.
It was the missing ingredient.
We wanted to know where we were at with our energy performance, how well we were doing and where we could improve. We’d heard about NABERSNZ so we did some research online. It’s a great tool, it provides a benchmark and it drives best practice.”
– Watercare Services Limited Sustainability Manager Roseline Klein
NABERSNZ in Action
Watercare Services Limited sustainability manager Roseline Klein says undertaking a NABERSNZ rating over its 7563 square metres of office space has proved to be “a painless process”.
The meterage required for a rating was already in place – 18 meters had been installed in the building during the construction period to aid fine-tuning of systems and utilities.
The company took advantage of the free NABERSNZ feasibility assessment which determines a building’s readiness to get started with a rating.
“It made a big difference for us and took away the humdrum business of counting 644 computers and documenting the configuration of staff plus it set a timetable, provided a checklist and saved us time,” says Roseline.
NABERSNZ assessor Pushkar Kulkarni from Total Utilities says lighting, computers and occupant specific plug load have the biggest impact on a tenancy rating.
He says clever configuration of work spaces, occupancy density and sensory lighting controls have resulted in Watercare’s superb 4 star result.
The Value of NABERSNZ
Watercare says it wants to model water and energy efficiency and its 4-star NABERSNZ tenancy rating shows its credentials.
Sustainability manager Roseline Klein says the rating has been “a great experience” and has pushed the company to look hard at its resources and ensure they are better used.
“It’s spearheaded change. For example we’re now trying to ensure our procurement process is not always about cost but energy efficiency too. We’ve recently retrofitted our gym with water efficient shower heads which use nine litres per minute compared with 12 – they offer a better shower experience and use less water and energy,” she says.
Roseline believes if a NABERSNZ rating was compulsory it would encourage energy awareness and help tackle climate change.
“For example Aucklanders are the lowest users of water because it is charged volumetrically so whether you are sustainably-minded or not your invoice reminds you not to waste, to think of water efficiency. A mandatory energy performance rating would have the same effect for landlords and tenants.”
In Australia a NABERS rating is compulsory for commercial offices over 1,000 square metres while a range of mandatory energy performance ratings exist in Europe.
NABERSNZ assessor Pushkar Kulkarni says as Kiwi businesses increasingly look to deliver on corporate and social responsibility and think about long-term business sustainability a NABERSNZ rating demonstrates a willingness to ‘walk the talk’.
“The NABERSNZ tool is set to become increasingly important in New Zealand.”
A NABERSNZ rating demonstrates a willingness to ‘walk the talk’
– NABERSNZ Assessor Pushkar Kulkarni
by chris | Dec 5, 2017 | Energy
Cost reduction in the energy market through procurement has been relatively easy in the last few years. Flat national demand, solid hydro storage, increased retailer competition and participation in the ASX market has led to competitive commercial contracts that have allowed many customers to save money without changing what they are doing.
While an immediate impact, it is not sustainable. Fixed price contracts are typically only 2-3 years in length and only relate to +/- 65% of a total bill, changes in transmission and distribution pricing is passed through at cost by the retailers and these costs are non-contestable.
In recent weeks, hydro storage has dropped for the second time this year to low levels which has driven large increases in Spot and ASX future pricing. Spot pricing through June moved well above the long term average, peak daytime periods were regularly priced at between 15-20c/kWh or more. While the South Island hydro storage lakes recovered in August from the dry winter, there has been little rain during spring which has meant that water inflows have been below 70% of average levels. It is not uncommon for Spot to bounce around at this time of year due to scheduled maintenance of thermal generators and other transmission related work, however the lack of South Island rainfall and the longer term NIWA forecasts are concerning. Over the last couple of weeks it has been like déjà vu as Spot pricing escalated to day time peaks of above 20c/kWh. 2017 is shaping up to be one of the more volatile years in recent history. Both ASX futures and Spot prices are lead indicators to over the counter retail pricing, pricing can change quickly and for customers who maybe engage with the market once every 2-3 years as contracts end, if the timing is wrong it can lead to significant price increases.
With New Zealand’s energy market so heavily reliant on environmental factors for supply of fuel, it is not enough to rely solely on pricing being the same or better every time a customer needs to sign a new commercial supply contract. Nationally we have around 6 weeks of hydro storage, tiny in comparison to Iceland who have around 6 months backup. Needless to say, it does not take much for the market here to spike, a period of unseasonably dry weather combined with a cold snap, some thermal generation outages and transmission constraint issues all lead the market in one direction.
Customers are asking us what else can be done to mitigate pricing risk in the future aside from securing competitive energy supply contracts. Utilities are a two way street, a symbiotic relationship between consumption and cost. If we take a strategic view, then time and effort needs to be directed at both sides of the coin.
We recently had a customer say, “It’s great when I can save 1-2 cents per kWh with a new contract, but for every kWh I don’t use, I save 10 cents. That’s where the real gold is hidden.”
Total Utilities has a range of energy management services that can assist customers identify sustainable energy savings. We can guide you through your energy efficiency journey from how and where to get started, device level energy monitoring and targeting to identify energy wastage, energy audits, solar viability analysis and system design, BMS optimisation and NABERNZ ratings though to implementation and post commissioning reviews.
Planning for efficiency now, can reduce cost risks in the future when commercial pricing increases. We’d welcome the opportunity to discuss with you what might be possible to ensure a commercially sustainable future.
by Mike | Nov 14, 2017 | ICT
Telecommunications services are a commodity and this has driven the price of services, especially consumer mobile and fixed broadband, to levels that were only a dream a few years ago.
Here is some context. My 13-year-old son gets more for his $10 per month prepay mobile plan today than I got for my $35 plus handset post-paid plan in the late 1990’s. At that time text messages were 20c each and only available from Vodafone.
My home fibre broadband connection, without a phone attached, costs $95 per month and gives me 103Mbs/sec throughput at quiet times and at the worst times I still see 70Mbs/sec. When I moved into my current house in late 2001 dialup, at 56kbs/sec was all we had.
All this transformation has been very good for the consumer and has driven a massive change in the way we consume telco services. Our household has ditched the fixed line because only telemarketers and political researchers were calling on it. Instead we use mobiles, Skype, Facebook and Whatsapp to communicate locally and internationally. We disconnected traditional Television a year or so ago because of the ads and our entertainment is delivered via the internet consuming Netflix, Youtube and online games on a PS4.
Commoditisation enables competition
The ever increasing commoditisation of services, along with the entry into the market of a large number of new fibre suppliers and telecommunications retailers, has created a highly competitive market place. There are now around 80 companies fighting to provide broadband services to an increasingly demanding client base.
This phenomenon is not unique to Telecommunications. It is very typical in the open market that is New Zealand to find multiple players fighting for share. In another example, the retail electricity market has 32 actively trading retailers. In comparison Texas has 38 retailers for 28 Million people.
Fierce competition has meant a constant driving down of retail pricing. As an example, a Skinny fixed broadband unlimited plan at $68 a month, delivered on 100 Mbps fibre. This price leaves Spark with only $16 out of the $68 after paying Chorus’ wholesale charges.
In response Spark is refocusing towards wireless broadband rather than continuing to fight a “race to zero” price war over fibre based services. Spark are now pushing very hard the idea that connectivity should be wireless and are offering services on their 4G mobile network at the same rates to homes as the ADSL products.
Spark Digital boss Simon Moutter commented at the company annual meeting,
“Spark has reoriented its business towards a wireless future and making a strategic shift from a traditional telco with international interests to being a New Zealand-focused digital services company.“
It now looks like the relationship between Spark and Chorus, which was never an easy relationship, has moved to an all-out war.
Chorus has responded by saying they will become an active wholesaler, pushing their products in the market. This is a big change from being a passive wholesaler. For customers on ADSL there is a real challenge from the 4G fixed cellular broadband. This type of service has been very effective for rural customers who had slow or non-existent broadband available.
What does this mean for telecommunications customers?
I don’t see any downside, if you have fibre in your street, choose a provider and enjoy. If currently have a VDSL connection available, stay on that, the service is high speed and low latency.
For those who are unlucky enough to have ADSL only there are two camps. Some will get good speeds and others will not be so fortunate. If your ADSL is not up to scratch then I believe that the 4G Spark service is an excellent option. With 5G just around the corner, even more options will be available in the near future.
Once again competition has brought better services at lower prices to consumers. It’s the lumbering old Telco’s that are paying the price.
