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ConnectivityWeek 2009: Industry Leaders Outline Energy Business Opportunities

ConnectivityWeek 2009, a conference about the convergence of energy and IT, is off to a great start. I couldn't resist the session titled "Business Opportunities in the Energy-Focused Marketplace." It did not disappoint.

Every year, the speakers at the ConnectivityWeek energy conference sound more like software developers. Discussions are peppered with IT terms like XML, SOAP, AJAX and RDL.

In this afternoon's session, track leader Terry Reynolds of Control Technologies said software as a service (SaaS) gives system integrators the opportunity to add value to existing building control systems. The value comes from facility diagnostics, performance data mining, energy prediction and other capabilities.

Vendors will provide these advanced services to building owners, either through integrators or around them, he warned. Building automation integrators must lead, follow, or get out of the way.

New SaaS players range from utilities and HVAC to security and facility scheduling. They face some hurdles, such as proprietary protocols and exclusive relationships, that integrators know how to clear, he said. But integrators risk relinquishing key relationships if they don't get up to speed with the new paradigm.

"While system integrators talk to Boiler Bob, new players are going straight to the C-level executives with energy-saving initiatives," Reynolds said.

The best relationship to have with a building owner is to provide the "pipe" -- the data link between the building systems and the common database that other applications use to deliver value-added services.

Reynolds recommended a strategy to take advantage of the new opportunities: First, fix broken systems in buildings, optimize them, install useful dashboards, and retro-commission facilities. Then start providing value-added SaaS capabilities.

Platform as a service

Panelist George Huettel, President of Cyrus Technologies, agreed that web services in building automation systems leverage IT standards & enable valuable new capabilities. The opportunities, he said, are in hosted subscription models. Integrators can differentiate themselves with turn-key energy solutions including monitoring, alarms, optimization, and aggregation.

"Use a platform-as-a-service approach to bundle services," he said -- services such as network operations centers, multi-building or campus aggregation, and energy management for large retail chains.

It's the lights!

Panelist Tim Potter, owner of ABS Systems, sees the opportunities in energy efficiency retrofits, services, and demand response.

"Energy retrofit projects get owners hooked on energy efficiency," said Potter, "and they want more."

Lighting is the logical place to start with energy retrofits. "It's the lights, stupid!" said Potter. Get lighting under control to demonstrate the value of energy management, then move on to HVAC and other systems.

Next generation building engineers

A YoungEnergy engineer asked where he fits in the SaaS future of building automation. The panel's answer: Take a higher-level role. The hierarchical procurement model's days are numbered. Building engineers are IT consultants, too.

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