Are cloud-based or on-premise TOS systems better for the environment?

Sustainability is more than just a buzzword in the maritime industry – it’s becoming a necessity. Terminals worldwide are under pressure to reduce their carbon footprints. But as they look for ways to become more eco-friendly, one critical aspect often gets overlooked: their Terminal Operating System (TOS).

Traditionally, TOS systems were housed on-site at terminals. Maybe you have servers standing on your terminal too? But as the industry evolves technologically, there’s a growing awareness of the environmental impact of these systems. So, which is better for the planet: cloud-based or on-premise TOS?

The environmental cost of IT infrastructure

On-premise TOS systems require significant physical infrastructure at the terminal. This setup demands a lot of energy, not just to keep the system running but also to cool the servers. According to the International Energy Agency (IEA), on-premise data centers accounted for about 1.5% of global electricity consumption in 2021. For cargo terminals, this translates into a considerable drain on resources – resources that could be better spent on core operations.

In contrast, cloud-based TOS systems are hosted by major cloud providers like Google or Amazon. These providers operate massive data centers that are far more energy-efficient than typical on-site servers. For example, Amazon Web Services (AWS) reports that its cloud infrastructure is up to more than 3 times more energy-efficient than the average European enterprise data center. The result? A significant reduction in energy use and, consequently, a smaller carbon footprint for terminals.

David Pereira, CEO of omoqo, notes:

“Even with a cloud-based TOS, terminals will still need some servers for their other systems. But they can significantly reduce the number and their environmental impact.”

Impact on terminal infrastructure

What does the shift to a cloud-based TOS system really mean for terminal operations? The example below illustrates the difference between having an on-premise and cloud-based TOS.

On-premise

With an on-premise TOS, terminals need dedicated hardware such as an application server, where the TOS runs, and a database server, where data is stored. To ensure a high uptime (e.g., 99.8%), redundancy is crucial. This involves setting up back-up machines for both the application and database servers in case of failure. Without this redundancy, there is a significant risk of system outages, leading to potential downtime, which could disrupt terminal operations.

Cloud-based

With a cloud-based TOS the above mentioned servers are no longer needed. Redundancy is automatically managed by the cloud provider. If one machine experiences a failure, another machine will take over. This prevents downtime and ensures a 99.8% uptime. That way, there’s a higher reliability and minimized operational disruptions, as the cloud infrastructure is designed to handle such issues without manual intervention.

The problem of e-waste

Another important consideration is electronic waste, or e-waste. On-premise servers typically need to be replaced every three to five years. This constant hardware turnover generates a steady stream of e-waste, which poses significant environmental challenges if not properly managed.

Cloud-based systems, however, help mitigate this issue. Since the hardware is managed by the cloud provider, terminals don’t need to frequently update their own equipment. A study by the International Data Corporation found that cloud computing can reduce e-waste by up to 30% compared to traditional on-premise setups.

Not everything on the cloud is sustainable

Choosing to move a terminal’s TOS to the cloud is a significant step toward reducing environmental impact. However, the journey doesn’t end there. Once the decision is made, the search for the right cloud-based TOS provider begins—and it’s not always smooth sailing. While moving to the cloud can indeed lower a terminal’s carbon footprint, the environmental benefits depend heavily on the cloud provider you choose.

Not all cloud providers are equally committed to sustainability. Some go the extra mile by using renewable energy and implementing robust recycling programs. For terminal operators, it’s essential to be vigilant when selecting a cloud-based TOS.

The right provider can make all the difference in achieving your sustainability goals. For instance, at omoqo, we partner with Google as our cloud provider to ensure that our TOS system is not only secure but also environmentally responsible. Google’s commitment to sustainability aligns with our mission to offer eco-friendly solutions. Learn more about Google’s sustainability efforts here.

Weighing the options: cloud-based vs. on-premise TOS in terminals

For terminals dedicated to reducing their environmental footprint, transitioning to a cloud-based TOS is a wise choice. By opting for a Software-as-a-Service (SaaS) model, terminals can concentrate on their core operations while taking advantage of the energy and waste efficiencies that cloud solutions offer. The data is clear: cloud-based TOS systems generally have a smaller environmental impact than on-premise servers.

However, it’s important to remember that not all cloud-based TOS systems are designed with the environment in mind. Some providers may not prioritize sustainability, which can diminish the potential environmental benefits. Therefore, it’s crucial to choose a cloud-based TOS that aligns with your terminal’s sustainability objectives.

In the push for sustainability, every choice matters. When it comes to TOS systems, selecting between cloud-based and on-premise solutions could have a significant impact on your terminal’s environmental performance.