Is watching Netflix as bad as flying to the other side of the planet?

4

October

2016

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If the title of this article confuses you, you probably have not heard of the CO2 emissions of the IT industry. It is estimated that the carbon emissions resulting from yearly global data consumption is approximately 2% of the total global carbon emissions, which is about the same of what the airline industry produces. Does this mean that IT is actually not that beneficial to a green planet? Let’s find out.

First of all let’s see what is actually the cause of these carbon emissions when we are talking about IT. The carbon emissions come from three main drivers: Data centers, Voice& data networks, and End-user devices, of which the end-user devices account for 60% of all IT emissions. Unsurprisingly energy needed to move a (electric) car forward is the same energy you need to charge your smartphone or laptop. Likewise Data centers and Voice & data networks use energy to facilitate data traffic between users. Data centers consume so much energy, that they are strategically located in cold regions to save on cooling.

Even though knowing what consumes energy within the IT industry, one might still wonder how flying to the other side of the planet is related to watching Netflix. Looking at the totals of carbon emissions one could argue that indeed watching Netflix is as bad as taking a long-haul flight, but the individual picture is completely different. Netflix estimated that the carbon footprint of an individual streaming for one hour is 70g of home equipment (End-user device) and 0.5g coming from the Netflix infrastructure (Data centers and data networks). If you would watch Netflix for 6 hours a week for a year, you would have emitted 0.22 Metric tons of CO2. Flying from New York to Los Angeles emits 0.29 Metric tons of CO2, which means it would not hurt to watch another movie on the plane.

Yes, IT emissions are real and the fact that data consumption is only growing also means IT companies need to research their carbon footprint and look for sustainable solutions to lower their CO2 emissions. However, IT has brought many ways for companies to be more sustainable, because a video call is still a lot more sustainable than flying people all over the world.

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How an Internet Startup became the biggest European Bus company

12

September

2016

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Long-distance bus travelling in Europe has been in strong decline for decades, but howcome the highways in Germany, France, and Italy start to get overrun with coach buses these days? An industry stuggling to survive has re-invented itself and is now starting to thrive in the travel industry. Main reason? Smart use of IT

You may have heard stories from your parents, who have traveled Europe by coach bus, mostly Eurolines. A sweaty 14 hour drive in an overfull bus on the highway to the other side of Europe. Back in the days airplanes were still a luxury and destined for business travelers or long-haul flights across continents. However in the mid-1990’s new low-cost airlines started to pop up and the long-distance bus industry found itself a new competitor, a strong one. Because who would actually pay for a bus ticket to go from Amsterdam to Berlin in 10 hours, if for the same price you could reach Berlin in a quick 1,5 hour flight?

The bus industry suffered and the airline industry has taken over in the 2000’s. However when in 2012 the German government announced to release its’ strict laws on public transport a few German entrepreneurs seized the new-grown opportunity. Both in Berlin (MeinFernbus) and Munich (FlixBus) two new digital startups arose with a similar business model. Instead of traditional ticket counters, fixed prices, and old-fashioned marketing techniques, they created an online platform where tickets could be bought online at dynamic prices (as in the airline industry), and made strong use of online marketing tools. This enabled them to provide a new and better service to customers, but the most essential part of their newly created business model is the way they enable growth. Both startups actually do not own a single bus, but have created a platform where they sign on partner companies. These partner companies are existing small to medium sized (family) bus companies. In this way there is no need to invest heavily in new buses to operate new bus routes, which allows for a much faster growth. FlixBus does all the ticketing, network planning, accounting, marketing and customer service. Whereas the partner companies take care of everything related to the actual bus driving (bus drivers, maintenance etc. ). Similar business models seem to be very popular and effective these days and has allowed Uber and AirBnb to grow at impressive rates as well and disrupt the taxi and hotel industry alike.

This growth enabled both MeinFernbus and FlixBus to quickly build a large network of bus lines throughout Germany. The large network and competitive pricing pushed most other bus companies out of the industry and even made the Deutsche Bahn see a sizable drop in passengers. The two firms were in strong competitions when in 2015 it was announced that both companies merged and renamed into FlixBus later that year. The merger allowed for a further expansion into Europe and the company is now operating in over 20 countries in Europe.

Still the company faces challenges from competitive pricing and the partner companies impose a certain risk of quality management, but the company shows how a traditional industry can be disrupted through IT. The same basic product, which was facing decreasing demand, was revitalized and put into a new spotlight and actually created new demand by a new and better offer.

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