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Network Infrastructure Magazine | Monday, April 10, 2023
The energy crisis has presented a significant challenge for businesses, but it has also created an opportunity for companies to prioritise sustainability and make changes that will benefit their bottom line and the environment.
FREMONT, CA: The majority of the companies globally experienced an increase in energy prices in addition to their existing contractual terms. They identified energy costs as the primary concern for their network operations, with much-expressing concern about potential energy supply shortages. The companies experienced significant stress due to energy costs.
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82 per cent of companies believed that energy costs have a significant impact on their serving pricing. Additionally, only a small percentage of companies, 11 per cent reduced their use of networks to save on costs, while a significant portion, 61 per cent choose to increase their investment in network operations. Many companies responded to the energy crises by prioritising energy efficiency and sustainability.
29 per cent of the US respondents reported losing sleep over the impact of the energy crises, whereas the corresponding figures for the UK, France, and Germany were much lower. Another key difference was the percentage of companies that passed higher costs on to customers, with 78 per cent of German companies doing so compared to 57 per cent in the US. Germany's problems may run deeper as they are caused by efforts to reduce dependence on Russian gas, while the US has abundant domestic resources.
While the US experienced lower price increases than Europe, 73 per cent of US businesses still plan to increase investment in energy efficiency, compared to 69 per cent in Germany, 49 per cent in the UK, and 48 per cent in France. In addition, a larger percentage of US respondents said they are increasing their efforts to become more sustainable than their European counterparts.
There is a difference in the perception of nuclear energy among the respondents from different countries. Over half of the French respondents, where the use of nuclear power has been prevalent, identified it as having the most potential to power network operations in the future. However, in Germany and the UK, only 18 per cent of respondents considered it the most promising energy source.
The difference in attitudes towards nuclear energy is reflected in the approach taken by governments. France, which has relied heavily on nuclear power in the past, has proposed new regulations that would accelerate the construction of nuclear plants. This is a reversal of earlier plans to limit the percentage of nuclear energy in the country's energy mix to 50 per cent.
In general, respondents believe solar to be the most promising energy source, which is surprising given how intermittent it is. This is mentioned in the study, along with how it differs from the requirement for a reliable power source for network equipment.
Businesses in the manufacturing industry have more opportunities to save energy, which could result in networks operating more effectively. As a result, the majority of businesses in this sector claim that the energy crises have increased their focus on sustainability. It is more difficult for banks and IT firms to reduce the amount of energy used by critical network and data centre equipment.
The current energy crisis is having a significant impact on enterprise network costs and has forced businesses to sharpen their focus on sustainability. As energy prices continue to rise and access to reliable energy becomes more difficult, companies must find ways to reduce their energy consumption and explore alternative sources of energy.
One of the prime areas where businesses can reduce their energy consumption is in their enterprise networks. By optimising their network infrastructure, implementing energy-efficient technologies, and adopting sustainable practices, companies can significantly reduce their energy costs and minimise their carbon footprint.
Furthermore, the energy crisis has highlighted the importance of sustainability in business operations. Consumers are becoming more environmentally conscious, and they expect companies to demonstrate their commitment to sustainability. By adopting sustainable practices and investing in renewable energy, companies can not only reduce their environmental impact but also attract environmentally conscious customers.
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