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Australia’s productivity is on the decline: Siemens

Australia’s productivity is on the decline: Siemens

Local productivity has been on the decline at 0.8 per cent per annum since 2004

Siemens is focusing on the importance of productivity, according to its national solutions manager of datacentres, David Henzell.

Henzell made his comments at a Datacenter Dynamics conference in Sydney.

He was presenting a session on the future of smart grids and its implications for datacentres.

The aim of the session was to show how productivity is critical to Australia’s future and why datacentres are key ingredients for productive growth, how a stable and reliable electricity grid is essential for economic growth and how the paradigm shift of the smart grid affects the country.

Henzell said a survey conducted by Telstra showed only 42 per cent of local organisations measure productivity, have a target for it and know what it is.

He mentioned the local productivity has been on the decline at 0.8 per cent per annum since 2004 and, more specifically, in industries such as mining, utilities and manufacturing.

It has been masked by the profitability of the mining industry.

As such, productivity is important for a datacentre as it provides a more stable and reliable environment using less resources and energy.

According to him, datacentres and ICT enable Australia to produce more with fewer resources and sustainability can only be achieved with economic growth.

“Technology and innovation are key drivers of productivity and competitiveness and datacentres and ICT are, therefore, key enablers for this technology and innovation,” he said.

Henzell added that smart grids affect productivity as if the country uses more energy, generation has to follow regardless of its cost effectiveness to generate power at that time – and generation is based predominantly on fossil fuels.

He suggested adopting a new grid system that is more interconnected, facilitates bi-directional flow of power and information and sees a paradigm shift where load follows generation and store the access for later use.

“The grid needs to be more intelligent, responsive and dynamic in order to integrate and fully optimise each component,” he said.

He theorised six reasons for moving towards this direction, which include:

  1. A consistent and well-maintained supply, critical for datacentre operation and local businesses.
  2. Large amounts of money tied up in embedded generation of datacentres.
  3. Insufficiency of multiple utility feeds.
  4. The need for energy storage that turns renewable storage into base load options.
  5. An increasing complexity of real time decisions in energy management, which drives a need for professional services to balance supply and demand.
  6. The focus on green technology.

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Tags TelstraICTdatacentresiemensDatacenter Dynamics

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