We compiled our carbon footprint data for 2009, and the CO2 per 100 paying users continues to decline.  In 2008, we emitted about 8.2 tons of CO2  per 100 users.  In 2009, that number dropped to about 7.8 tons of CO2 per 100 users. (We include building utilities, employee commuting, air travel, IT, hosted operations and SaaS vendors in our total carbon calculation)

Unfortunately, the total tons for our business and tons per employees continues to increase as we are growing in both employees, offices and people that travel on airplanes.  In 2009, we expanded the use of virtualization (VMWare), HD videoconferencing (Lifesize), desktop videoconferencing (both Google and Skype) and located more of our sales and field services employees into their territories.

As we look to 2010, we are beginning to work with our landlord to do longer term planning with regard to solar options for our Boulder facility.  We are also making major upgrades to our hosted operations and testing/staging platforms to support our growth and the growing mission critical nature of our application.  I expect our total CO2 to increase, our CO2 per employee to flatten and CO2 per 100 users to continue to decline as users, employees, airline miles and servers all go up in 2010.

Some of the e-waste collected at our recycling fair

To end on bright note, we ran our electronic recycling fair again.  This year 8 pallets of CRT, TV, computers, servers and amplifiers left our offices and homes headed again for local recycling at Luminous Recycling in Denver.  Total weight of the 8 pallets was 3,984 pounds. This year we did it around St. Patrick’s day and held a Biggest-Loser-style competition in our game room with green beer on tap.  Though the race was tight between one of our engineers, an accountant and our CFO, I am proud to announce that engineering team of Mike and Susan won the competition this year with over 450 pounds of e-waste diverted to local recycling.

To read more about our carbon footprint, you can read my post and comments from 2009.

Climate Change due to the increase of carbon from human activity is a “Global problem,” thus it has a couple of unique attributes compared with other world problems:

It affects everyone

You can act on it anywhere

I choose to act on this problem at home and at work.  As part of this action,  Tim and I chose to attend the Society of Organizational Learning’s (SoL) workshop based on Peter Senge’s book Necessary Revolution.

This three-day workshop leveraged long-time SoL content on leadership and mastery into the context of the global climate change.  It was a fantastic workshop that I highly recommend – as it has changed me and my mental models.

Tim, our CEO, Peter and myself at the end of day three

Living in Boulder Colorado with tons of the worlds best climate scientist and a University that helps you Lean More About Climate, I am familiar with much of the science behind climate change.  But, in this workshop we got to take our understanding up to the larger system level through system archetypes, multi-player games and simulations.

On the third day, we played with and did mock negotiations using the climate change system simulators that were built for negotiating teams going to Copenhagen in the next two weeks.   The systems dynamics models baked into the C-Lean simulator are made more apparent in the Seed Simulator on Carbon flows. (It is a simple bath tub model of how carbon flows through the natural system.)

For your information, the answer to the simulation puzzle of putting climate change in check and keeping average global temperature from rising more that 2 degrees involves three things:

1. have all countries in the world (un-developed, developing and developed) reduce there carbon output by 80% from 2005 levels by 2030
2. stop deforestation efforts
3. maximize reforestation efforts

To do this, the world will have to cross the threshold to a new game;  an infinite game of win/win behaviors that measures success based on ecological restoration and social well-being.  Finite game behaviors coming from zero-sum game thinking and patterns of shifting the burden and escalation will have to stop.  I like to think of this an maturation of our species from wildly growing adolescents to young adults.

Peter’s 5th Discipline Fieldbook and The Dance with Change, come with tons of exercises, tools and guest lectures that are all helpful at understanding organizational learning and systems thinking. However, as Peter said in the workshop, understanding the concepts are easy, but practicing them can be much harder.

Part of the success of this public workshop was working with these concepts in a context of a global problem that we all share.  We got to work on ourselves and a shared global issue.   And as a result, we seemed to all have limitless energy and worked from 8:30 AM to 7 PM each day.

I encourage you to visit these sites, they give climate change a face and a shorter feedback loop.  Both of these benefits can lead you and your teams to better understand and more easily act on this Global issue.

Thank you Tim, Peter, Sherry, Darci and all the other great folks who attended our workshop in DC.  I have my joy and I will share it and my personal learning’s from this event in my next post.

About the Author: Ryan Martens is a telemark skier,  founding board member of the Entrepreneurs Foundation of Colorado, and Founder and CTO at Rally Software Development. Subscribe today to get free updates by email or RSS.

As part of our goal to have a zero carbon footprint by 2020, we calculate our total carbon footprint each year including building facilities, travel, commuting, IT and waste.  As we get more accurate every year, we are adding in the impact of using Software-as-a-Service (SaaS) to that calculation. I have been unable to find a benchmark of other SaaS companies carbon footprints, so I am putting out a call for SaaS companies to share their footprint per user.

Rally’s benchmark – 8 tons of CO2 per year for every 100 users

At Rally, we have been growing steadily (227% in 2005-2007, 242% in 2007-2009) at the same time working hard to limit our carbon footprint.  Unfortunately, as a company grows, its carbon footprint often grows with it.

We have been able to keep carbon per 100 users flat at 8 tons per year for the last two years – the same amount produced by a single person flying from New York to Deli, India round trip 4 times. In addition, we estimate that our SaaS customers are avoiding an additional 1 ton per year of CO2 as compared to running an application in a robust manner in their own data center.

What is your SaaS carbon footprint per 100 users?

Lacking any other information, I used our figure – 8 tons per 100 users per year – to calculate our carbon use per 100 SaaS seats for each of our SaaS suppliers including: Google Enterprise Apps, Salesforce Unlimited, NetSuite, Big Machines, Eloqua, Xactly, and Open Air.  I assume our numbers are conservative because we are not the scale of the Google or Salesforce, and we count airline miles and employee commute in our footprint.  Can any other SaaS providers tell me your carbon per 100 users to increase the accuracy of our calculations?

Like Salesforce, we buy renewable energy credits from NativeEnergy to offset the carbon of hosted operations.  This is a very small portion of our overall carbon footprint -  about 7 tons per quarter.  However, it does a couple of things for us: 1) It supports our SaaS service being carbon neutral since 2008,  2) It keeps us learning about carbon credits at a national and local level, and 3) most importantly, it keeps us focused on our goal of zero carbon by 2020.

Do you want to partner?

In addition to our efforts to battle climate change in our industry, we are also working hard in social responsibility by following the 1% model started by Marc Benioff and Suzanne DiBianca at SalesforceFoundation.org.  Last year, we hit our 1% target of volunteer time with over 2,500 hours helping 90 charities.  This year, we are in search for a strategic non-profit partner to help us focus our corporate social responsibility efforts and volunteer time in one of three areas:

1. Reducing the environmental burden from the IT industry (carbon, e-waste, toxins, take-back efforts)
2. Decreasing the digital divide in society (universal access to the Internet)
3. Increasing the level and engagement in corporate social responsibility behaviors

If your non-profit believes it can leverage the 3000+ volunteer hours from a company in Colorado, North Carolina and the UK to help on one of these efforts, please contact us.  We are looking for a true partner who wants to start developing a relationship in 2009.

The importance of sustainability at Rally

Our efforts are based on trying to stand on the shoulders of Ray Anderson from Interface. See Ray’s Fortune interview on pushing through on sustainability in light of the current economic crisis that is radically affecting his commercial carpet business.  Since then, Google’s efforts and Salesforce’s efforts in the SaaS IT space have kept us moving forward.

We look forward to driving zero footprint data centers, increasing remote collaboration technology and having a zero footprint campus in the next decade. We are preparing a sustainability report for 2008, following the Global Reporting Initiative format.  It is not a small project, but it was the clear next step for our sustainability efforts that started in earnest in 2007.  Our goal is to release it by July 1st so stay tuned.

ADDED After Publishing and based on comments:

A better video of Ray Anderson is his speech at TED in 2009, it gives more background, and more data.  – Thanks to David Koontz

Graphic below to provide clear breakdown on sources of Carbon in our business – 6/17/09

On our recent webinar “Demystifying Cloud, The Next Generation Architecture” we had a number of thoughtful and tough questions related to security, intellectual property and risks. We provided answers to these questions in the recording, but I found the recent SD Times article “Cloud Providers Answer Tough Questions” an even better source. In this article, a number of experts on specific platforms from Microsoft, Google, Salesforce as well as Rally’s own Zach Nies answer questions about security, lock-in and IP.

Henry Ford didn't foresee the impact of the first car - do we foresee the true impact of the Cloud?

Daryl Plummer from Gartner also did a great job recently describing the real point of cloud computing as he reviews Russ Daniels recent Forbes article. Russ says:

“In my view, the ability to facilitate innovation and entrepreneurship in this new model is one of the most promising ways to ignite the next wave of economic growth. We can no more see the full impact of the cloud than Henry Ford foresaw the impact of his desire to produce more cars in less time.”

As a result of SD Times’ tough questions and our desire to “ignite the next wave of economic growth,” we decided to talk in our next webinar with Global Logic and IBM about how to go to the cloud and mitigate risk along the way. As with any pilot, the goal is to enter wisely, learn fast and then move forward.  Given the iterative and incremental method of Agile is best suited for this fast-learning approach, we will title our next talk “Going to the Cloud – the Agile Way.”

We are structuring the content now, but I would love to hear your ideas, questions or feedback on this topic. I will also post a registration link for the webinar as soon as I have it.

Thesis: Taking a learning-first approach to your cloud efforts can help you avoid the risks of vendor lock-in, IP security and a spectacular failure

Proposed Agenda:

1. Review the innovation, benefits and risks
2. Typical approach – Choosing early, over selling, dramatic big bang
3. The Agile/Lean approach – Set-based, scientific and learning-based
4. Case study
5. Close

The Dream of the Cloud by Enrica Bressan

What is your dream for the cloud? 

Is it a blob that will cause you to lose all control, including your job?

Or, is it an amazing innovation that will save your company from this world-wide recession?

Or the it's The Blob - Buy the classic @ Turner by clicking image

On April 15th, I will be fortunate enough to join Sachin Saxena from Global Logic and Mac Devine, the AIM SaaS/Cloud CTO at IBM,  for a webinar to attempt to answer these questions (learn more and register here).  They are both experts in internet technology and hold deep knowledge (along with beautiful slides) on the topic of cloud computing.  Their goal is to help you understand the massive energy, time and computer savings made possible by the many cloud options.

Specifically,  they will define the cloud, its opportunities and roadblocks. They both plan to highlight case studies, and my role will be as a customer and extensive user of cloud solutions.  This is much the same role that I played at the New Jersey CIO summit in February.  (If you can’t wait for the webinar – don’t miss Troy Angrignon’s opinion post at Sandhill.com about the implications on cloud computing on software firms.)

At Rally, we are very comfortable with the application of these technologies.  As a 160 person SaaS firm provider, we have been in the early market for many of these technologies.  It was fun for us to benefit from the fast move to free of hypervisor/virtualization portion of this wave. Listen to Mike Cote’s podcast on the topic at RedMonk. He has been covering the Cloud/virtualization for years as an open source analyst.

As a result, I believe that 100% of the companies who attend this webinar will leverage these technologies in 2009 in a strategy to reduce risk and cut costs.  But what are the other rationales for the cloud?  What are your stories?  I think cloud/SaaS, Agile development and web 2.0 customer communities are an even bigger story, but one that will take longer to develop than the use of public/private clouds and virtualization technology.

Next up on this topic will be the actual energy savings reports from our virtualization and power management efforts lead by our internal green team.

This Friday, February 27th, I will be speaking on a panel at the New Jersey Technology Council’s 2009 CIO Conference called “Moving to a Virtual World” ( www.njtc.org). The panel is on Cloud Computing and it is a mixed collection of vendors and CIO’s talking about the rapid arrival, the clear benefits and struggles of adopting Cloud Computing.

At Rally, we have gained some firsthand knowledge of these technologies, platforms and applications as we try to find the most energy efficient, stable and cost effective solutions for us and our customers.  As a small fast growing technology company, we are an ideal customer for Cloud Computing and I am sitting on this panel as a user, supplier and leader on software development for the cloud.  (We use Amazon EC2, VMWare ESX, Salesforce and seven App-Exchange Apps, Google Apps Premier to run our business and manage our own multi-tenant SaaS/PaaS application in the cloud.)

In preparation for the panel, I was brushing up on some of the latest news and views on this topic.

Here are the worthwhile Cloud Computing links that I used to prepare my talking points:

• Cloud Computing – you have to start on Wikipedia to make sure your definition is grounded
• What is Cloud Computing - a wonderful video of a variety of folks from the Web 2.0 Expo
• Above the Clouds – is a new blog site, whitepaper and video from Cal Berkley Professors on Cloud Computing
• Cloud an Outsourcing Option in Troubled Times – CIO Insight article on using cloud services instead of more traditional IT outsourcing options (both development and operations)
• “What the hell is Cloud Computing?” - Larry Ellison rails on the whole idea as over-blown (see many YouTube videos)

I have always been interested in SaaS and Cloud Computing as huge improvements in energy efficiency and steps toward a more sustainable IT value chain, I like to call the Software Value Cycle.  Cloud Computing is the result of innovations in commodity hardware, open-source, fast virtualization and internet advancements.

According to the team at Berkley, large data centers like Amazon that have 10,000 machines can be 5 to 7 times cheaper to operate than mid-sized data centers.  As a result, they argue this is next wave of computing that will transform IT, in the next 5 to 10 years, into a place where there will be only one computer – the network of networks with its connected devices.

With 5 to 7 times better operational efficiency, this innovation in IT infrastructure will pull us all into the cloud just as we had been pulled into the Internet 1.0 infrastructure starting 14 years ago.

So what does this mean for software development and Agile?

• Developers have to worry less about plumbing and more about value
• Developers will have to design for running in parallel, not just in serial
• Developers will be coding, testing, staging and working with services

This looks like some change, but nothing that Agile IT teams working with SOA have not been wrestling with for the last four years.  And we know that Agile and SOA development fit together like a hand and a glove.  So, I am going to go out on a limb and predict more growth in Agile as teams will be in a better place to more quickly leverage cloud infrastructure advances. The end result will be a leaner and greener IT infrastructure for all.

What do you think about developing software for the cloud? Is it any different?

Could you imagine doing it without and agile software development approach? Or, is this just all a bunch of hot air?

Further Reading

• Will “The Cloud” Save or Swallow the Earth?

In this 20-minute interview with Michael Vizard, I do a wide survey of why Agile development practices can be so effective at cutting the costs of development and operation of strategic IT applications. Michael asked some great questions, including whether the current economic recession will stimulate change in the development process or cause it to stagnate, how people will train and staff for the coming changes, and how today’s ALM tools differ from what he refers to as the “old guard,” who are starting to claim that their tools also support Agile development.

Read related posts on:

Can you afford the software you are developing? (from Israel Gat’s blog)

Cutting costs through productivity improvements, and

WHY do you develop and operate software?

Let me know what you think!

Just got off the phone with Dan Montgomery who interviewed me on his BlogTalkRadio channel on Sustainable Leadership.

Following the ‘More…’ link will show my notes and links from the 50-minute interview using the Decker Grid.

Sustainable Leadership Talk Radio Interview

Notes –
Here are my notes and links organized using the Decker Grid.
Thanks Bert and team for making preparation so fast and easy.

Topic – Sustainable Leadership

Sharp – Used Necessary Revolution as framework for annual planning at Rally

Point of View (POV) – The next decade will be about design for Sustainable Value in a connected world, not just shareholder value in isolation – from adolescence to adults

General Action – Find something to do in 2009

General Benefit – Start to exercise these muscles

Topic 1 – Sustainable IT vision is no longer isolating in business

Problem – Tons of waste – 2% of the population but 22% of waste

• Data centers 2X
• AC/DC in computers
• Design for reuse versus toxicity
• IT will be more polluting than the airline industry in 2020

Solutions in 2008 – Hope

• IBM, CISCO, Apple Ipod/Iphone, Tendril, Sustainable Minds

What Rally did in 2008 – Paved the path

• Baselined Rally’s carbon footprint
• Grew (three facilities now – CO, NC, UK)
• Moved to Energy Star building with shortest commute
• Moved to Google Apps with other SaaS companies like Salesforce.com
• 2000+ hours of volunteer work in 2008

Topic 2 – Agile collaborative working culture is catching fire

• Lean Principles/Thinking (reduce waste, amplify learning, delay decisions, empower teams, deliver fast, build integrity in, optimize the whole)
• Moving away from negative archetypes (myopic thinking, zero sum games, Tragedy of Commons, Isolated (unlimited resources and away))
• Towards (two-pronged approaches, committed to long-term, be your best, win/win – collective Van Jones)

Topic 3 – My own personal journey is accelerating

• Started Rally based on Senge and Hawken (Lean/Sustainable IT, New Domain of Action – EFCO/Give Back)
• Agile success as a service and data on usage and carbon (Ice Data Center @ CU Boulder, Story of Stuff, Inconvenient Truth, wecansolveit, Pachamama, NRDC E2, Be Climate Smart, Pine Beetles in Colorado, green team – composting & commuting, PV & hybrid @home, Urban Chickens, Boulder County Going Local and Permaculture)
• Goals, planning and theories to test (zero by 2020), strategic non-profit partner in social responsibly, carbon per employee and per 100 users – looking for other SaaS providers to follow suite)

POV – The next decade is about design for Sustainable Value in a connected world, not just shareholder value in an isolated world – we are building our plans and strategies

Specific Action – Start your green team or read Necessary Revolution

Specific Benefit – It feels really good to be part of the solution

Sharp – Feels like the wind is at our back now

Thanks again, Dan!

Jeff Windman posted a nice little article on TechCrunch IT about Lean, Agile, Rally and Toyota.  Please join the deep and skeptical discussion.

Right now, we are all working through our 2009 budget process with the unknowns of the economic recession staring us in the face. This budgeting cycle holds more unknowns than we’ve seen in awhile, so it’s making everyone cautious about finding the right moves that will cut costs in the short term without damaging our businesses.

Unfortunately, layoffs may be part of the solution to achieving short-term savings, especially for firms hit hard by the recession. In short, layoffs suck. These highly personal actions are sad, and I am sure you and your staff may need some time to grieve the losses. But prior to cuts, there is a bigger issue to consider while managing belt tightening -– your long-term vision and direction. Put simply, it is imperative to refresh your 2009 vision before the cutbacks, or you risk destroying the morale of the whole team, losing key personnel, and dropping market share.

As you look to make cost-saving cuts, the first question is, how are you going behave?

1. Take the easy way out and cut in a way that fixes the short-term at the risk of harming your long-term prospects. “Across the board” cuts fit this behavior.
2. Rise to the occasion and cut in ways that meet short-term needs and advance your long-term goals.

On Nov. 9, Rahm Emanuel, the new chief of staff for President-elect Barack Obama said, “Rule one: Never allow a crisis to go to waste… They are opportunities to do big things.” Clearly Mr. Emanuel is reacting by rising to the occasion – scenario number 2.

The trick to taking advantage of this crisis is to resist the pressure to simply cut without a long-term plan that everyone understands. When you do not have long-term goals, short-term fixes always lead to unintended consequences that are typically worse than the original problem. Said another way: While we sometimes get some of the intended consequences, we always get all of the unintended consequences.

A key goal of every IT department is to reduce the time and effort needed to deliver value to the business. To accomplish this, the best long-term trend we have in IT beyond Moore’s law and the power of the Internet is the improvement of IT agility. Increasing IT agility is important because it provides a value innovation and delivery method that harnesses these fundamental advances in infrastructure.

Tom Poppendieck, a leader in the Lean IT movement, recently said, “You can’t cut costs by focusing on cutting costs. You’ve got to focus on the changes that will lower your costs over the long run.”

If you are exploring the adoption of agile software development practices and you’re prepared to rise to the occasion, this recession and the resulting belt-tightening gives you an opportunity. You have the opportunity to rally your company around a vision that will not just cut costs, but improve morale and help you grow your business in the next economic spring.

IT agility

For the 70% of you who have not adopted enterprise agility, let’s do a quick overview. Agile practices enable teams to build less, but return the same value by focusing on early delivery of the features that have the highest business value and not wasting money on the features that don’t.

IT agility is driven by three major innovations: agile development, Software as a Service (SaaS), and Web 2.0 social networks. However, without agility in development and software releases, the innovations of service-oriented architecture (SOA) and Web 2.0 are elusive.

There are three costs savings for enterprise IT agility proven through benchmarking analysis:

1. Lean flow provides more productive development organizations.
2. Better prioritization delivers the most valuable software first.
3. Faster time to market and incremental delivery returns income sooner.

To realize those benefits, you and your team must develop, communicate and implement an effective agile enterprise adoption driven by a highly visible roadmap. Since the late 90s, agile adoptions have followed a ground-up and incremental funding approach as early adopters proved the benefits and scalability of agile in the enterprise. Starting in 2005, leadership-led or top-down approaches have begun to dominate the scene. These larger and more systemic approaches are required for organizations that need to act fast to derive short-term gains.

For managers and directors doing their budget planning now, the next three sections outline the proof points for agile, a roadmap to enterprise agility, and the implications on this roadmap from having to make savings cuts ahead of investment.

Proven impact of enterprise IT agility

Many large and distributed development organizations have proven the positive financial impact of agile over the past five years. These findings were quantified in the Agile Impact Report. In that study, QSM Associates benchmarked Agile teams against a database of 7,500 projects and delivered the following results. On average agile teams working with Rally were 25% more productive, had 50% faster time to market, and delivered one-fourth the number of defects. (Those teams not working got 50% of those results.)

Given those improvements, it is becoming a business imperative to adopt agility, especially on your mission-critical applications. In the face of cuts and with a long-term outlook toward enterprise agility, you can now see your way to a 25% savings in 2009.

Enterprise agile adoption roadmap

Like any mission-critical systems or initiative, you need a vision and roadmap to steer your adoption and rally the troops. During the past four years, an approach fashioned from Lean manufacturing concepts and adopted in an incremental approach has proven very effective. The following illustration depicts that method.

There are three keys to effectively managing this process:

1. Work incrementally, in an agile fashion, through the steps and gain proficiency before widespread scaling.
2. Develop a vision/roadmap and change backlog with key executives before you attempt to move up to step 3 and beyond.
3. Share the vision and roadmap with the entire organization and manage the rollout in a collaborative fashion with complete transparency.

Many of these rollouts have started with a grassroots effort to get to Step 1 and Step 2. With the help of external coaching and parallel tool rollouts, many companies have taken more aggressive, “flash-cut” moves with top-down leadership and investment to jump to step 3 in the roadmap within months.

Flash-cut approaches

Given the pressure and opportunity of this crisis, as well as the increasing number of public proof points showing how large organizations can quickly transition to agile, you might be thinking about your ability to do accelerate your adoption and capture savings in 2009 from your efforts. From my experience, there are three things to heed while considering this:

1. Adopting agile needs complete management buy-in and a true sense of urgency. Many enterprises that have done this have used phrases like “burn the life rafts.” A recent Gartner report, “Case Study: Inovis Uses Agile Methods to Accelerate Product Development,” says, “The ‘big bang’ adoption approach is high risk, but it works in companies or business units with high levels of risk acceptance, and it can manage the ensuing organizational change.” What is it going to take for your management team to get buy-in to adopt Agile on a major portion of your organization? I assume the current recession will amplify any existing business needs.
2. You are going to need a strategic partner to help you manage this organization change effort. I do not know a company that followed the flash-cut approach without an outside coaching or consulting firm. As a result, you will have to budget for this investment and the time to choose and schedule them. These partners will help you build the organization capacity for agile while also supporting the professional development of your middle managers as the organization becomes flatter and leaner.
3. This is a whole system change from a world of plan-driven to value-driven ideas. As a result, you will see immediate changes in your process, organization, and technology. This transition will set up a culture of continuous improvement and even drive changes in your overall development and business strategies. To make this transition go well, you are going to need to implement a collaborative project management solution to provide visibility across your development teams. Enterprise IT agility does not scale or distribute around the world without it.

Don’t waste a crisis

We don’t know how long or how deep this recession will be. Belt-tightening and staffing cuts almost seem inevitable. You can either reduce costs by just cutting your budget, or you can use this opportunity to make systemic changes in your business. I strongly urge you to make your cuts in parallel with investment in the long-term to avoid fixes that fail.

Provided you have a longer-term vision of your organization around agile software development, some outside coaching to help accelerate your adoption and solution for distributed management, you can take advantage of this crisis to make big changes very quickly. Enterprise IT agility is proven to do that — more so than investments in technology point solutions that only have a point in time savings. Most important, this approach will help ensure the savings from today’s cuts do not create worse problems in the long run.