As AI becomes an essential tool for modern enterprises, CIOs face the challenge of balancing AI infrastructure investments with the refurbishment of legacy systems. Marc Garner, SVP for Secure Power & Data Centers, Schneider Electric Europe, discusses how CIOs are navigating budgetary constraints while tackling increasing demands for energy efficiency, sustainability and technological advancement. He delves into how Schneider Electric is helping organisations integrate AI into existing systems without compromising efficiency or sustainability.
How are CIOs prioritising investment in AI infrastructure versus the refurbishment of legacy IT systems, given the constraints of a limited budget?
Today’s CIOs face significant challenges. For example, power, which traditionally has always been the foundation of digital infrastructure and buildings, has now become more integral with increasing digitalisation and connectivity. As a result, the CIO’s role is becoming more complex. CIOs are expected to achieve more with fewer resources due to budget constraints which affects everyone.
The introduction of AI adds another layer of difficulty, as it forces CIOs to carefully balance investments between upgrading their current infrastructure to meet today’s requirements and planning for future events like preparing for the deployment of AI and upgrading IT equipment. Therefore, balancing the demands for resilience, cost efficiency and sustainability creates a real challenge.
Elizabeth Atkinson, our CIO at Schneider Electric, has emphasised that Generative AI is a game changer, but for now, most companies are experimenting with it to determine how best to streamline operations and maximise its benefits. The difficulty lies in managing day-to-day systems, while investing in future technologies.
Additionally, circularity must be factored in as part of an organisation’s overall sustainability efforts. At Schneider Electric, our own approach includes leveraging platforms like EcoStruxure IT to monitor energy consumption, manage CO2 emissions and enhance the sustainability of IT systems.
The quality of data within the organisation is crucial. The better the data, the more it can be used to make intelligent decisions regarding when to replace or upgrade equipment or whether existing assets can be further utilised to improve efficiency. Data will also play a critical role as AI is deployed because the effectiveness of AI depends entirely on the quality of the data it is fed.
How is Schneider Electric helping CIOs effectively integrate advanced AI technologies into their existing IT framework without compromising on efficiency and sustainability?
Here at Schneider Electric, we offer comprehensive support from the grid to the chip, and from the chip to the chiller. This means we handle everything from delivering power to the point of consumption within the server to managing the cooling systems that extract heat from the chip and extend to the chiller system.
We engage with CIOs or organisations on the design, construction, operation and maintenance of their physical and digital infrastructure, providing an end-to-end solution. In addition, we work closely with the broader ecosystem, whether cloud and service providers, Internet giants, IT channel, distribution networks or the new Global Systems Integrators (GSIs) that are influencing this space. Schneider Electric’s involvement across the entire ecosystem allows us to support not only the design and build phases but also the on-going lifecycle, maintenance and operational phases.
Secondly, we focus on giving CIOs complete visibility of their IT infrastructure. Solutions like our EcoStruxure platform enable CIOs to maintain secure, resilient and sustainable IT systems no matter the location. This visibility allows for better decision-making that is driven by data extracted from the system thereby helping CIOs make informed choices about what to modify. With EcoStruxure, they have insight into power, cooling, security and environmental control, giving them the ability to implement predictive maintenance and management. This means they can decide when a product needs to be replaced or when it’s possible to extend its life by a few more years through additional servicing and attention.
How is energy efficiency factoring into CIOs’ decisions regarding IT asset management and AI deployment?
Energy consumption and its regulation now span all parts of industry. We are witnessing increasing regulation which promotes improved control over energy use and consumption, particularly within IT infrastructure. There’s no denying IT is energy-intensive, requiring power and support while generating heat that must be managed efficiently. For CIOs, optimising these costs is essential to maximising resource use.
Regulations increasingly require businesses to monitor and report the power consumption of their IT infrastructure. This drive for sustainability includes IT infrastructure which inherently carries a carbon footprint.
Businesses must assess their infrastructure holistically and although newer products and systems might offer greater efficiency, it is essential to consider the total carbon footprint. Replacing equipment might not be the best decision in some cases. This is where monitoring, management and visibility of data becomes critical.
With an advanced solution like EcoStruxure, CIOs can make informed decisions on energy efficiency and infrastructure replacement. The key here is visibility, because with greater insight, CIOs can either optimise existing assets or replace them with the next generation of products to enhance energy efficiency.
How are Schneider Electric’s solutions influencing CIOs approach to IT asset management and achieving more with less?
As a leader in energy management and automation, and the world’s most sustainable company, we have one of the largest installed bases of electrical assets globally. This enables us to leverage AI-driven predictive analytics and a vast network of service engineers, industry experts and partnerships developed over decades in both the electrical and IT sectors.
This extensive expertise allows us to provide comprehensive end-to-end asset management solutions that covers everything from the electrical infrastructure to cooling systems. We deliver proven and sustainable solutions within the data centre and IT spaces and this ensures continuous improvement for both end-users and CIOs, thereby helping them manage their assets more effectively.
Currently, there are several critical challenges in asset management. Notably, over 53% of data centre operators are struggling to find qualified employees capable of optimising maintenance and modernisation efforts, especially when IT infrastructure is distributed across multiple locations. How to manage and address this effectively is also a key concern.
The industry faces a significant skills shortage at time of rapid growth, which requires a shift in how assets are deployed and managed. Digitalising IT assets is one solution and this involves the strategic placement of sensors and proper connectivity to extract data and feed it into data lakes, like those we have within our global ecosystem.
With these digital tools, we can monitor equipment like uninterruptible power supplies (UPS) and assess whether they are operating within the correct parameters. No maintenance is necessary if everything is functioning as expected.
However, if any asset operates outside the expected range, we can adopt a proactive approach where we schedule maintenance to ensure the asset continues to support the organisation’s goals. This proactive asset management helps prevent power outages which can lead to revenue loss, non-compliance with sustainability standards and customer dissatisfaction. By offering a predictive view of asset management, we enhance the experience for both the organisation and its customers.
What role can circular economy thinking play in CIOs’ strategy, particularly in managing the lifecycle of both AI infrastructure and traditional IT assets?
The role of the circular economy today and in the future is different and we are only at the beginning of this journey. However, there are encouraging signs emerging in the market. This shift will transform CIO strategies and extend system and product lifecycles. AI will play a crucial role in this context. It will help to extend product life and circularity while the product itself will enhance AI applications and their effectiveness.
There are three key pillars we follow: use longer, use better and use again. The ‘use longer’ principle enables CIOs to extend the life of IT and electrical assets by selecting equipment designed with eco-principles, including more modular designs that facilitate easier upgrades. This approach also involves ensuring sustainable material sourcing, which we manage across our supply chain at Schneider Electric. We work closely with our suppliers to ensure they meet our sustainability targets and the broader goals we have as a business.
The ‘use better’ pillar focuses on the next generation of maintenance services. Technologies like remote monitoring, condition-based maintenance and predictive analytics will be critical components of the future CIO model and will ensure that systems are better utilised.
The ‘use again’ concept centres around product take-back programmes where products are refurbished and reintroduced to the market in ‘as-new’ condition. This allows us to offer the same warranty and service as a new product while extending its lifecycle.
A case study we currently have is when CGR Cinémas, a leading operator in the French film industry, approached us with a similar challenge. They have now adopted circular UPS solutions where units are taken back, refurbished and redeployed in over 713 theatres. By opting for this solution, they have saved approximately 11,600 tonnes of CO2, while ensuring reliability, energy efficiency and the protection of their equipment – all without compromising their business objectives.
This example illustrates how a CIO, by thinking differently, can achieve cost savings, enhance sustainability, reduce environmental impact and maintain the high standards of reliability and safety required for their infrastructure. It’s a great demonstration of how circularity can drive both business success and environmental responsibility.
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