Energy Management - Business Case

1 Supporting the Distributed Energy Management Market: A CA Technology Approach
Supporting the Distributed Energy Management Market
A CA Technologies Approach
Table of Contents
1. Executive Summary
2. Energy Management – a Quick Background
3. Notable Trends
4. A New Energy Model
5. Laying out an Energy Management Program
6. Value Propositions
7. Laying out a Platform Strategy
8. Approaching the Market
9. Going to Market - The CA Opportunity
10. Going to Market – Defining the Key Business Drivers
11. Going to Market - Building the Architecture
12. Going to Market - Laying out a CA Product Opportunity Roadmap
13. Conclusion
CTE Adjunct Project Team
Gladys Beltran
Serge Mankovskii
David Messineo
CTE Adjunct Project Advisor
Jason Davis
August 31, 2010

1. Executive Summary
In the past few years there has been considerable effort made by governments worldwide and the
industry at large to rationalize the level of energy production and consumption. Within the past couple
of years, the level of effort to be “green” has increased significantly. We belief there exists an
opportunity by CA to exploit new regulatory reform by partnering with Energy Management companies,
Energy Management brokers, and Energy consumers. The crux of this opportunity, from a technology
perspective is to assist these three key stakeholders in achieving the following:
Identify, optimize and manage energy consumption patterns
Manage energy generation infrastructure by building an effective orchestration platform for
adopting and supporting new services and the resources required to deliver them economically
Manage the packaging of energy through various brokerage activities
In weaving these three objectives together it is our proposal to build a set of capabilities that accomplish
the following:
Provide a platform for energy accounting
Provide a platform for reliable metering, monitoring and management energy usage
Provide a platform for holistic IT governance
Provide a platform for adopting infrastructure changes quickly and minimal risk
Provide a platform for a customer support center that manages customer expectations
Provide a platform for adopting new configurations and bi-directional communication
We believe CA has the ability, through strategic partnerships, and proper development investments, to
retrofit and/or update a set of tools, that would be attractive to the market. Our conclusions are based
on our conversations with existing energy management companies, many of which are CA current
customers, talking to market analysts, and most importantly, working with high caliber partners like
Accenture that has niche expert rise in Energy area that have approached CA to help them build
solutions. Additionally, interest in our current Eco platform has demonstrated interest in the industry
that CA could be a player from a branding perspective.
Ultimately we believe CA has an opportunity to contribute to making the planet greener through the
management of the entire spectrum of energy use, generation, storage, and distribution. We believe the
current focus on the Cloud would present a perfect recommend that CA consider building a formal
program to evaluate the market opportunity and viability based on its current strategic focus.

2. Energy Management – a Quick Background
Energy Management has a long history with many different approaches to generation and distribution
that have been attempted. Essentially there have been three major phases that are relevant to the
conversation of this paper:
2.1.1. Energy Management in the Past
In the past the biggest footprint has been related to large fossil power plants where one size fits all.
Energy management was limited in that excess energy production was generally lost and excess energy
demand often results in brown outs and block outs. Investments in capacity are incredibly expensive and
require a consider amount of time to bring online. Regulatory issues bring considerable risk to energy
companies making investments. Finally the level of pollution of fossil fuels has generally be attributed to
global warming, smog, health issues, and generally a reduced quality of life, particularly in areas where
fossil fuels are processed.
2.1.2. Energy Management in the Present
Currently many different forms of energy generation are being adopted including natural gas, solar, and
wind power. Safer methods of nuclear production are also be evaluated. Additionally, new forms of
storage, including long-life batteries are being researched and improving. The ability to generate energy
is taking on a more distributed nature than with fossil fuels. However this distributed nature brings a
new set of requirements around managing the infrastructure in areas where absolute control maybe
impossible. It also introduce a level of cooperation with a large group of individual and corporations,
each having their own profit interests that may or may not be in line with the energy producer.
The biggest change that is being adopted with energy management is the focus on managing energy
grids. Energy grids provide a mechanism to completely decentralize the production, storage, and
consumption of energy. It provides for a much great bi-direction interaction across the various energy
management actors and at many levels. The challenge is that this level of interaction requires a higher
degree of process orchestration, demand profiling, and fulfillment optimization. The technology
platforms that exist today simply do not provide the required level of functionality. Much of it is
scattered across various products with little regard for “integrated design” and the resulting efficiencies
of scale.
2.1.3. Energy Management in the Future
Energy Management of the future is taking the various mechanisms of energy production and storage
and brings them to market more efficiently. There is a much more emphasis on the consumer playing a
role in the overall demand for energy than simply the energy producer making continual investment in
new energy sources. Using bi-directional grids, with integrated configuration management and policy
control, improves the ability to optimize the level of energy production while simultaneously adopting
“green” standard. By providing the means to connect energy usage tracking to optimal energy
production schedules, it provides the world at large with the ability to improve its utilization and
conservation of energy more effectively: the community of one becomes economically viable

One big change that we believe the future of Energy Management will evolve to is the notion of the
“virtual power plant”. By leveraging a community of simultaneous energy consumers and producers
(e.g. reselling unused energy) and tapping into cloud technology to provide the supporting technology
platform quickly and safely, we believe the overall cost of managing power, regardless of role, will be
more efficient, more effective, and most important more agile. Swings in energy consumption
requirements will be met better, and excess energy production will be capable of being stored at
location closer to where it will be consumed, and thereby avoiding large investments with heavy risks by
the Energy management companies.
The notion of the “virtual power plant” also adds one more major component to Energy management –
the role of the Energy brokers. While there are many brokers today that deal with large amounts of
energy being produced, stored, and consumed, we believe the nature of the virtual power plant will
provide the means for brokerage types activities to be much more wide spread – leading to lower costs
and more efficient usage of energy. While the notion of having an individual household owner having
any kind of brokerage privileges is likely to be some time, it is our believe that communities the size of
large towns, or large corporations, are in a perfect place to negotiate the production and consumption
of energy. Evidence of this model is starting to be seen in the proliferating of wind farms, community
solar farms, and large organization reselling unused energy back to energy companies. By connecting
the technology advantages of the cloud with the virtual power plant, we believe CA has the ability to be
out in front.

3. Notable Trends
In reviewing literature for putting together this paper many sources were reviewed. We believe
however the various trends identified in a CA white paper “Environment and Energy” provide an
excellent list. We have reproduced some of the ones relevant to this conversation below.
3.1. Energy related trends
There are many ways to categorize energy trends, and multiple “top ten” lists can be found. One
example is the “Top Ten Global Energy Trends 2009” from Global Information, Inc. (the-infoshop, 2008).
Here we confine to social trends, as opposed to financial or economical trends.
3.1.1. Reduce energy consumption
This is the “holy grail” of energy-related trends. It responds to all the energy-related drivers, including
those related to the environment. It manifests itself in multiple ways, including personal and
organizational consumption reduction, more efficient use of energy and better energy management.
The need, and trend, to reduce energy use by data centers is one that falls into CA’s main business area.
There could also be opportunities in energy management, in data centers and other areas, such as
buildings or manufacturing.
3.1.2. Use cleaner energy
The use of energy and the exploration/production of energy resources are among the most polluting
activities. This has created a strong trend towards the use of cleaner energy. It manifests itself in
different ways, including improving current energy-producing technologies, new technologies at the
point of energy usage and the search for alternative sources of energy. The latter is a bona fide trend by
itself.
3.1.3. Seek additional sources of energy
The trend to search for new sources of (traditional) energy is mostly driven by the high cost of oil, and
thus its intensity fluctuates as the price fluctuates. Other drivers are the desire to reduce reliance on
foreign energy sources (both in the U.S. and in Europe), and the belief that oil could become scarce
(which would also drive its price up). We include here the use of nuclear power to generate electricity,
since “alternative energy sources” is commonly associated with green sources.
3.1.4. Seek alternative sources of energy
A combination of the desire for cleaner energy sources and the need for additional energy sources fuels
the search for alternative sources of energy. This includes the development of technologies for the use
of sustainable or renewable energy, such as solar, wind, hydroelectric, marine and bio-mass.
3.2. Environment-related trends
As mentioned earlier, several of the environment-related trends are also related to energy. However,
not all of the environmental threats are energy related.

3.2.1. Growing belief that humans need to do more to preserve the environment
There is a growing belief that many of the environmental threats we observe are caused by human
activity and, thus, that we need to do more to preserve the environment. This has produced a strong
“green” movement, with initiatives at all levels, from grassroots to business to government. (Global
Warming, 2009)
3.2.2. Businesses are responding to environmental pressures
Businesses are also becoming interested in protecting the environment. This may be due to a genuine
interest by business leaders or a response to external pressures, but it is a fact that many corporations
have instituted Corporate Sustainability Programs (aka Social Responsibility Programs, Corporate Social
Responsibility, etc). There is the danger of “greenwashing,” where companies place more emphasis in
publicizing “green” activities than in actually pursuing them. The good news here is that many
environmentally friendly changes, such as reducing energy use, are also cost effective. (Green Business,
Sustainable Business, 2009)
3.2.3. More people and governments agree that climate change is accelerated by human activity
While this may forever be disputed, there is growing belief that humans are at least partially responsible
for global warming and other climate change manifestations, and that it is imperative they reduce their
impact. The new U.S. government has adopted this position, shared by most nations. (Chamberlin, 2009)

4. A New Energy Model
In addressing these trends and meeting the expectations as set forward in the executive summary a new
energy model needs to be described. As CA is not an energy company nor would likely take a leadership
role in defining industry requirements, we opted to identify characteristics we feel would be required in
any such description. We have validated some of this with particular customers and potential partners.
4.1. Energy demand outpaces supply
Not surprisingly even with the current downturn in the environment the cost of energy resources is
going up. This is a result of the energy industry becomes more global in nature. Demand in China directly
impacts the cost of energy in the United States. A new energy model must therefore accommodate the
understanding of the relationship between demand and supply, and the nature in way demands are
profiled. It is quite possible that excess energy production in one area cannot fulfill excess energy
consumption in another. The cost of areas like storage, transmission, etc… often factor into the total
costs. Therefore the new model needs to properly model location and distribution as well as raw
generation and distribution. The net is that prices will go up without a new energy model in place.
In addition, as location may have a dramatic impact on energy demand the nature of the governmental
policies and regulations that impact that area may have a substantial impact on the ability to produce
and distribute energy. Regulations related to where windmills can go, where gas and oil can be drilled,
where solar panels are permitted, etc… all have a substantial impact on the economics of a specific area.
4.2. Traditional energy distribution reaches its limit
The economics and physical ability to generate energy is completely separate from the ability to
distribute it. It is expensive to store energy and its distribution over long lengths degrades its quality.
While new technologies are constantly being developed to better leverage the energy sources we have
or are being developed there needs to be the capacity of energy generation to reach that “last mile”.
For example, the ability of electronic cars to be a viable form of transportation has presented several
challenges. While these types of cars have been around for some time, the ability to find locations to
charge them has been limited thereby reducing the ability to leverage these cars to meet real world
travel requirements.
In current situations there has been a real lack of being able to manage grid capacity for large data
centers. Various forms of energy generation lead to various amounts of available energy. The expense
involved in generating, storing, and distributing that energy has a profound impact on how the grid is
managed, and how the energy is ultimately accounted for and billed against. As the last mile becomes
increasingly expensive, the tradition forms of energy distribution wreak havoc on the business model.
Any new business model for energy must therefore access how to manage the economics of that last
mile.

4.3. Energy Effectiveness
The effectiveness of an Energy Management Program, and therefore a requirement of a new energy
model is the ability to look at the entire lifecycle of the process. This includes production, storage,
distribution and in some cases reclamation. It basically comes to doing more with less and if possible to
do much more with just an incrementally smaller amounts.
There has been a basic assumption of a linear relationship between production and consumption. This
needs to change in favor of incremental investments in production leading to much more productive
consumption. An Energy Model that meets today requirements requires a non-linear relationship. The
manner in which this is accomplished is through improved production and critically the capability of
storage. It is storage that allows the energy producer to round out and streamline the availability of
energy. Storage allows the distribution of energy in a planned and predictable way.
Finally in terms of effectiveness is the role that environment plays. The form of energy production is
very much dependent on the availability of raw materials and nature itself. Most of these locations
however are under regulations that make exploiting its full capacity a challenge. Finding way to meet
these restrictions is a big opportunity for Energy companies and one that CA could potential improve
through the management of infrastructure.
4.4. Key Risks to the New Energy Model
Any new model has a set of challenges to adoption. Primary among them is the ability to model risks and
accurate forecast how these risks will play out in the real work. Building a new Energy Model has several
complex challenges that can have a huge impact on both the accuracy and integrity of its results.
4.4.1. The Environment
As has been previously mentioned the environment (from both an industry and geographical
perspective) plays a huge role in the manner in which a new Energy Model would work. Three areas
have a significant impact on the model. Each of these represents an opportunity for CA by adding the
appropriate content and reports to its baseline functionality:
Results of climate change
Leveraging renewable based energy sources
Implementing a carbon tax
4.4.2. National Security
The reliance on energy for meeting the needs of our Economy makes any Energy Management model
dependent on the efforts require to ensure our national security. We have a world economy and energy
production, storage, and distribution will migrate to those areas which consume the most and arguably
are the most profitable (with minimal risks due to regulatory concerns). We need to review these
security concerns from two major perspectives:

Dependency on foreign resource
Dependence on depleting resources
4.4.3. Technology
The greatest value IT brings to a new Energy model is the economics of managing the required
infrastructure, providing analysis of the resulting data, and automating the orchestration of changes. In
addition having a technology platform provides for accelerated adoption of new services, adoption of
new architecture standards, and providing flexibility for managing the dynamics of demand and supply.
Finally IT provides the ability to have bi-directional instantaneous conversations between the three
major actors that contribute and benefit from the Energy Model. Essentially IT provides the mechanisms
for optimization coordination of resources. Even with those benefits, however, IT places significant risks
to Energy Management which must be factored into the model:
Distributed architecture for Process Orchestration
Compatibility with Energy Management agents and support systems
Management of Device Configuration
Assembly and Presentation of Role-relevant data

5. Laying out an Energy Management Program
We’ve discussed the key requirements for an Energy Management program, identified key trends, and
reviewed the characteristics of overarching model. The next step is to build out an actionable plan for
taking advantage of this market opportunity.
5.1. Goals
Based on your studies we believe the CA should focus its efforts on helping the industry at large adopt
and achieve the following goals:
5.1.1. Normalizing the level of energy utilization
In the current economy Energy consumption tends to vary widely leading to higher investment costs.
This in turn causes higher costs to the public leading to lower cost fuel production methods which place
the environment at risk. In additional it impacts negatively the national security of countries who prefer
not to partner with countries who have questionable Governments.
Normalizing the level of energy utilization is about consumers making smarter choices about when and
how energy is consumed. It is also about rounding out the balance between production and distribution
– a role now having been taken on by various brokerages. Whether it’s controlling the usage of lighting
in a house or building, or scheduling a batch job in a location with lower energy costs, normalizing the
level of energy utilization requires the balance of a local view with a world view.
5.1.2. Slowing the demand curve
While the amount of energy consumption can vary widely based on economic conditions, there is a
general trend to reduce the amount of demand on a proportional basis. The adoption of “green-
friendly” devices helps, but it’s generally more about reducing the amount overall consumption through
the industry. Therefore macro level metrics like total energy produced are carefully reviewed against
other metrics like GDP to identify is energy demand is efficient and production level effective.
Slowing the demand curve is essentially about managing existing demand better by optimizing its ability
to be fulfilled through current production methods using modern methods like wind and solar. This also
reduces the need for additional energy investments in older technologies like fossil fuels.
Recent improvements in energy storage also help streamline the distribution of energy. As Energy is
capable of being stored more locally yet available for wider distribution, the requirement to supply
“energy on demand” diminishes, reducing the demand requirements.
5.1.3. Leveraging multiple energy sources
The various forms of energy sources (oil, coal, gas, wind, solar, water) each have their own advantages
and disadvantages. They each generate energy at different levels of efficiency. They each have expected
levels of production with differing degrees of variance. They each impact the environment differently
through varying degrees of being renewable. Any Energy Management Program needs to weigh the
differences in terms of overall efficiency, regulatory issues, and adopting a “green” initiative.

Equally important, however, is how each of these energy sources can be aggregated to help normalize
the production of energy much as we discuss the normalization of energy consumption. While energy
companies have rapidly invested in new forms of energy production through acquisition, it’s the entire
energy ecosystem that needs to play a role. That means that energy consumers can now be energy
producers (reselling unused energy), local markets can become their own brokerages through a virtual
power plant, and energy producers can balance the needs of production style with storage, and focus on
lowering the cost of the last mile by eliminating the distances energy travels.
5.1.4. Engaging energy conservation
Energy conservation is ultimately about a dialog between communities of producers and consumers.
While energy producers can continue to invest in new ways of production, storage, and distribution, if
consumers do not adopt a similar mindset and continue to investment in resources that require the
generation of energy in older forms (oil, coal, etc…) it will be a challenge for “green” initiatives to
prosper. The industry and Government may have a responsibility to push for these next general
alternatives, but the value and incentive must be there for consumers. Creating a personalized “grid” for
example only makes sense if a consumer sees reduced costs (from carbon-based energy sources) and
better control of their overall energy consumption footprint. Having data centers capable of managing
workloads in energy rich locations, or having local appliances be controlled through a grid are two
examples that CA could play a role in.
5.2. Objectives
While our recommendation is to focus CA’s effort on supporting the Energy industry, it is worth casting a
wider net for purposes of building a holistic picture to work from. Having reviewed several sources we
believe the following objectives reflect the industry:
5.2.1. Improving energy efficiency and reducing energy use, thereby reducing costs
As stated several times throughout this paper – we need to have a balance between energy production,
distribution, and consumption, with the net effect of reducing the risks of investment and reducing the
costs to the end consumer. We believe this objective is one that CA can capitalize on with the
appropriate functionality built into the solution portfolio.
5.2.2. Cultivating good communications on energy matters
Several key actors are part of an Energy Management program: Energy Producers, Energy Consumers,
and Energy Brokers. We provide specific details on each of these actors in the following section. An
integral part of an Energy Management program is that there is a productive conversation among these
audiences (as well as Government). This includes understanding the role of demand (pricing), fulfillment
(costs), and regulatory (constraints) issues. In introducing the notion of a Virtual Power Plant, the role of
broker becomes more wide-spread and the nature of conversations become more critical as the middle-
man becomes the engine of normalizing the utility of Energy and its distribution.

Although not a major thrust of this paper, all three key actors have a huge role to play in communicating
with the Government. The types of regulatory reforms under consideration often have varying
influences on each of the key actors in way that were not anticipated. These behaviors often result in
unintended consequences and inefficiencies in the systems regulations were design to correct. Having
the mechanisms to record the changes in the overall Energy supply chain and how it relates to a new
Energy Model is a critical component to managing the Government’s oversight of the industry.
5.2.3. Developing and maintaining effective monitoring, reporting, and management strategies for
wise energy usage
The cornerstone of any Energy management program is the ability to track the amount of production
and consumption. The key to achieving this is having the ability to properly access various agents and
other information sources to assemble the appropriate trends. You can manage what you can measure;
visibility across the three roles is paramount. In particular the ability for the brokerage activities to be
efficient at pairing demands with supply requires constant monitoring on both sides.
However each of the roles benefits significantly by having the appropriate usage of energy production
and consumption tracked. We believe CA’s footprint in this through its EcoMeter product is a big step in
this direction.
With additional integrations to other systems and tying in more deeply with the Energy producers, we
believe CA can help provides a set of “norms” by which each of the actors can make decisions about
how to optimize their contribution to the model, while still simultaneously optimizing the whole. A
critical part of the model requires each actor to act autonomously while also acting in the interest of the
industry. While Government purports to contribute to this through regulatory reform, this is a slow
process and often leads to inefficiency in the overall system.
5.2.4. Finding new and better ways to increase returns from energy investments through research
and development
As in any industry, the key to sustained innovation and profitability is the ability to find increasing
returns on investments, generally through research and development or optimizing the supply chain.
Although not directly an area of strength for CA, the ability of our technology platform to provide an
open integration platform, process orchestration, and adoption of new services generally supports the
nature of reducing the cost of investments.
5.2.5. Development interest in and dedication to the energy management program from all
audiences
As mentioned with the goals of an Energy Management Program we should be providing an incentive
for all audiences to adopt a program of energy efficiency. There are many ways to achieve this but in
general this requires having the consumer understand the balance between the business or personal
need with the required energy requirements. Through metering, on-line tracking, local orchestration,
on-demand configuration, and automated billing there are ways to build a dialog between all the major
players.

5.2.6. Reducing the impacts of curtailments, brownouts, or any interruption in energy supplies
One of the ways we believe that CA could entertain taking a serious interest in the Energy industry is by
providing a portfolio of tools to manage the identification, protection, and resumption of services that
are impacted by gaps in energy supply. In one sense an outage due to energy shortage is no different
from an outage caused by a virus: it still leaves the various system inoperable or at minimum available.
As part of the design process the results of product like EcoMeter could be used to ensure enough
energy is available. Tools like the CA CMDB could be used to identify relationships between key systems
and energy sources. EcoGovernance ensure the right decision making process is in place for
investments, while products like Spectrum and SSA could monitor the quality of the distribution
platform.
5.3. Understanding the key audiences of an Energy Management Program
There are three major actors in the Energy Management field (excluding governmental agencies):
Energy Producers, Energy Consumers, and Energy Brokers. Each of these key actors plays a key role in
the model by contributing resources that when optimized provide for the efficient production,
distribution, and consumption of energy.
IT should be the expectation of CA that each of these actors would leverage the technology platform in
different ways. Much the way ERP helps to coordinate various suppliers along a supply chain, the Energy
Management Platform should be directed to provide access to the relevant data for each actor to make
critical business decisions, automate policy and fulfillment best practices through process orchestration,
and build a collaborative conversation between the actors.
Each of these actors has three fundamental activities that support the Energy Management Program:
Building a Profile of Customers and Suppliers
Automating the business rules that support the business model
Creating the mechanism to build a contractual relationship between each of the actors
5.3.1. Energy Producers
Energy Producers are the actors responsible for actually converting the resources nature providers to
energy which can be consumed. While smaller energy producers often focus on one kind of energy
production, larger energy producers (or essentially holding companies) often have a portfolio of various
companies that can combine various energy forms to help provide a national or worldwide network.
5.3.1.1. Energy Producers – Profiles
Energy Producers generally focus on creating profiles for three audiences. The first profile type are the
individual companies or profit centers around specific energy types (oil, gas, etc…) As regulations for
each of these types varies widely by local, state, national, and international, it is critical to understand
the cost of operations given these policies.

The second profile type is those of a broker. Brokers deal generally with specific energy demands and
location. Assembling large communities of consumers allows the Energy Producer to invest in the right
capacity requirements and plan for the future. Brokers, by their very nature, normalize the demand out
and make it less risky to do business.
The third profile type is that of the actual consumer. While brokers tend to create a distance between
the producer and the consumer, it is important that Energy Producers understand not only the energy
demands placed on them, but the kinds of energy that is desired, where it is located, and what types of
demand should be expected in the future.
5.3.1.2. Energy Producers – Supporting business rules and contractual relationships
The focus on Energy Producers is on building a set of business rules in that allow for the flexibility of
handling Consumption Patterns. The largest investment they take on is generally adding more capacity
ability and understanding what behavior devices they have to use existing capacity, or to handle through
lower cost storage mechanisms, is a key to their business models. Keep in mind that Energy Brokers are
also effectively “consumers” as well – albeit at a much more aggregate level. None the less consumption
patterns require understanding the full set of possible consumers. The ability to accumulate this
consumption data, analyze it, and present it in a form to make investment decisions is critical. The
manner in which they can build and manage contracts easily for managing energy distribution is also
critical.
5.3.2. Energy Consumers
Energy Consumers are the actors responsible for consuming energy. Generally consumers come in
various forms: individuals, groups, companies, and organizations of various sizes. The key difference
among consumer types is the method by which energy is consumed, its regularity and amount, and the
method by which it is effectively billed. Additional ways to characterize a consumer is the level in which
energy fulfillment can be controlled through process orchestration, the level of instrumentation
available, and the ability to enforce specific policies.
5.3.2.1. Energy Consumers – Profiles
Energy consumers generally focus on profiling “Providers” and rarely separate an actual provider with
that of a broker. Generally the smaller a consumers footprint, the more likely a broker is in place. The
manner in which a “Provider” is profiled generally amounts to the amount of energy available (direct or
through storage), the cost of that energy, the manner in which it is billed, and in some cases the ability
to sell back unused energy. In cases with large consumers the ability to have flexible rates scales is a
critical component. The ability to track usage and costs and provide the ability to audit these figures
plays a substantial role. Finally the most important manner in which “Providers” are provide is avoiding
brown-outs, black-outs and the ability to handle swings in energy capacity requirements.

5.3.2.2. Energy Consumers – Supporting business rules and contractual relationships
The focus on Energy Consumers is on building a set of business rules that allow for the flexibility of
managing Energy Generation requirements. Generally this takes the form of being able to schedule the
consumption of Energy to be at its lower pricing point or placing resources in places where Energy
pricing is inexpensive. This if often supported through the use of process orchestration tools that
communicate with agents. Additional, energy metering tools are used to track actual usage and
compare against the billed capacity to look for savings opportunity. More recent improvements include
the ability of the grid to make decisions around energy consumption and automatically control the
configuration of resources to perform in a manner to control usage.
5.3.3. Energy Brokers
Energy Brokers generally focus on consuming large amount of demand from Consumers and packaging
them in a manner that is easy for Energy Producers to satisfy. Additionally Energy Brokers generally
normalize the demand in such a way that they can approach various Energy Producers and effectively
negotiate for the lowest rates based on energy capacity requirements during various periods. Energy
Brokers generally focus on normalizing the energy demand curve and smooth out the requirement for
Energy Producers to make large investments to handle swings in consumption.
5.3.3.1. Energy Brokers – Profiles
As the bridge between production and consumption Energy brokers generally focus on profiling both
providers and consumers and focus on normalizing the demand for energy with the packaging of supply.
Profiling Energy Producers is often focused on the types of energy production methods, the ability to
handle swings in demand, and the price points available as determined by either time or location.
Additional elements that come into play include the ability to handle storage, and the overall quality of
energy avoid brown-outs and black-outs. Because brokers focus on accumulating large numbers of
customers (and therefore demand) a significant part of profiling is the ability to segment these into
categories that can be pushed to the Energy Producers in ways where economies of scale help to lower
the cost and just as importantly lower the cost curve and overall energy utilization. Finding way to
leverage excess capacity without additional costs becomes a key to profitability.
Profiling Energy Consumers is often focused on the levels of demand and the ability to create pricing
packages (i.e. pricing tiers) that are attractive to the market. In a sense – the Energy Broker is looking to
replace variable costs (and variable demand) with more fixed costs (and fixed demand). This allows the
Broker to create efficiencies in the market and influence the industry as a whole to aspire to the
aforementioned goals.
5.3.3.2. Energy Brokers – Supporting business rules and contractual relationships
The focus on Brokers is on building a set of business rules that allow for matching demand with supply
through efficient Energy Packaging.

6. Value Propositions
There are several identifiable value propositions that CA could pursue in supporting an Energy
Management Program. However, as our recommendation is for CA to partner with an energy industry
consulting firm, the specifics of what and how we approach the market will depend significantly on the
manner in which a partner interacts with the industry.
6.1. Provide a platform for energy accounting
At the foundation layer we believe CA could provide a platform for building an “energy accounting”
system. CA has technology capable of tracking resource costs and utilization, tracking energy
consumption, tying services to costs, and managing the costs of projects. Services can be defined with
both pricing and costing managed separately. We see the opportunities:
Controlling current energy performance through comprehensive service level management
Setting energy reduction targets and enforcing them through policy management and tracking
Improved energy consumption forecasting using open source analytic tools
Analyzing the historical energy performance of company facilities
Opportunities for improved operation and maintenance practices
Projecting future energy budgets by tying costs to consumption
Improved product/service costing through effective assignment of job scheduling
Tracking and verification of energy efficiency retrofits
6.2. Provide a platform for reliable metering, monitoring and management energy usage
Currently through its ecoMeter platform CA has the ability to meter energy usage in a data center. We
believe CA can extend its footprint into the larger distribution network of the grid. Through proper
instrumentation of energy devices and deeper integration into the CA technology portfolio we believe
CA can capitalize on the following opportunities:
Measurement of energy consumption over time
Measurement of the independent variables that influence energy consumption
Development of a relationship between energy and the independent variables
Historical analysis of energy performance
Definition of reduction targets
Frequent comparison of actual consumption to targets
Reporting of consumption and target variances
Taking action to address variances and ensure targets are met
6.3. Provide a platform for holistic IT governance
Historically CA has had a strong platform around IT governance. We believe that even with CA’s
changing strategy around this area there are specific high-value niche areas which could be approached
by integrating the notion of Energy governance in certain high-value operational areas. In particular we
see the following as potential:

Opportunities for improved operation and maintenance practices
Create motivation for energy saving actions
Report regularly on performance
Monitor overall utility costs
Monitoring cost savings
6.4. Provide a platform for adopting infrastructure changes quickly and minimal risk
One of the most aggressive areas we see CA exploiting is in the nature of enabling infrastructure
changes. Through CA’s comprehensive suite of Service Assurance and IT Service Management tools, we
believe that effectively we can provide a partner with the ability to create a “service deployment” suite.
In particular we see CA ability to provide the following capabilities:
Comprehensive planning through Program, Project and Change Management
Delivery through Process Orchestration, Job Management, Content Delivery
Tracking through instrumentation and integration with various CA and non-CA agents
Quality management through service modeling, performance management
Support through distributed event management and service desk functionality
Infrastructure resource management through asset management
Cloud supporting through planning, design, and execution
6.5. Providing a platform to manage operational decision-making
Although not an area that is likely to be approachable directly, we believe we can support Energy
Producers and Energy brokers with tools that providing basic support for answering the following
questions:
What functional(s) does this system serve?
How does this system service its functions?
What is the energy consumption of the system?
What are the indications that this system is probably working?
If this system is not working, how can it be restored to good working condition?
How can the energy cost of this system be reduced?
How should this system be maintained?
Who has direct responsibility for maintaining and improving the operation and energy efficiency
of this system?
6.6. Provide a platform for adopting new configurations and bi-directional communication
Finally through the Catalyst architecture we believe that CA can enable one of the areas that has been a
challenge in Energy Management industry – enabling and leveraging bi-directional communication. This
is critical to supporting the full capabilities of the grid. In particular we see CA providing a
comprehensive real-time architecture to monitor and take immediate action on the following:

Hour by hour energy demands and energy production
Tracking when demand exceeds production and vice-versa
Issuing demand response bid to local utility
Implementing energy control plan automatically
Receive demand response payment from the utility
Implementing comprehensive demand response
The net of this platform would be to provide a level of process orchestration and real-time optimization
across the three major stakeholders with minimal effort.

7. Laying out a Platform Strategy
During the past few months we have talked with many stakeholders both inside and outside CA. This
includes representation from all three primary stakeholders. One of the biggest challenges we’ve seen
for CA taking on an initiative of this sort is identifying its solutions as a set of products. Our analysis
really identifies the need for CA to see itself in terms of a platform – much in the way it is positioning the
cloud technologies and Catalyst.
7.1. Platform Characteristics
We view platform development as distinctly different from product development. Unlike product
development, the goal is not to directly develop new products per se, but to create the pieces or
elements that enable the development of subsequent product with the assistance of a partner. In other
words, we see CA tools as being a set of blocks through which our partners assemble a solution. We
identify the following characteristics of a “platform” approach to be an essential element of the manner
in which CA needs to consider an investment:
Product platform life-cycles that define specific product or product sets
Product platforms that can be extended using core common components
Product platforms can that create derivative platforms for the various roles
In addition we do recognize two features of platforms that would need to be explicitly addressed:
Product platforms are developed in a holistic perspective, not incremental
Product platforms take significantly longer to develop
However, the risks of this are mitigated somewhat by the investments CA has already made in those
components that are more holistic in nature (i.e. integrated suites) as well as those that take time to
develop (the Catalyst platform).
7.2. Product Platform Strategy
In recommending a platform approach, we believe for CA to be successful we would need to leverage a
coalition of partners and customers to assist with the following key activities:
Platform Planning
Platform Concept Evaluation
Platform Development
Platform Testing and Pilot Betas
7.3. Purposes of product platform strategy
Taking a platform approach has some benefits to CA in terms of its strategic thinking and tactical focus.
We believe having CA consider approach the Energy market as a platform strategy would:

Focuses senior management on the most important decisions
Establishes the foundation for the resulting product line
Provides the platform for long-term business strategy
Links a company’s strategy vision with its product-line strategy
Provides specific direction for technology development
Defines product variations aimed at specific segments within a market
Schedule the rollout of products within a product line
Provides guidance to the product development teams
Schedules the initiation of product development
7.4. Platform Market Benefits
While there are many software manufactures in the market that offer niche functionality, much of the
software is effectively CA type software that has been customized by each of the identified
stakeholders. We feel that CA has an opportunity to be the first to market a platform centered, cloud
centric approach. In summary we believe the opportunity is to be:
First to market and capture a market share advantage
First to market and capitalize on getting earlier experience]
First to market and influence the definition of standards
First to market and reduce the time to capture new revenue streams
By working with a coalition of organizations CA is position to get ahead and stay ahead. Further by
leveraging our common components and cloud technology CA can leverage new technology faster than
the competition.

8. Approaching the Market
The Energy market is large and there are many components to it. Added to that complexity is the while
CA does have many energy customers, it does per say have a dedicated practice to the industry.
Therefore our recommendation is that CA assume that it needs to partner to pursue this industry. Given
that, there are several high level internally based decisions that need to be considered as well. We
divide these into three areas. The first relate to specific organizational conditions which need to be
considered. The second related to specific structural issues that need to be considered. The third
focuses on how to exploit the future business model described above.
8.1. Organizational Considerations
8.1.1. Personnel
While there no dedicated practice to the Energy industry, there is a business unit that focuses on
providing solutions for this market. We believe that addition resources would need to be hired to work
with a partner organization to gather requirements and push to product management and marketing.
In addition we believe there needs to be a dedicated alliance manager, practice architect, and customer
advisory individual. The alliance manager would focus on work with Energy Producers and Energy
Brokers, while the Customer Advisory person would focus on Energy Consumers. Finally the Practice
Architect would be responsible to managing the platform, and tying CA solutions from not only an
Energy perspective, but a corporate portfolio perspective.
8.1.2. Promotion
Promoting the CA solution would be focus around partner activity, industry specific workshops and
conferences. Leveraging existing reference accounts as well as efforts from the eco team would also be
part of the overall promotion strategy. Leveraging the cloud messaging would also be encouraged if the
appropriate content and distribution methods (see below) were in place. Finally having the appropriate
Practice in place would be a recommend way for CA to have a voice in the industry. This includes white
papers, relevant presentations and architectural content. The current financial industry Practice serves
as an example of this approach.
8.1.3. Distribution
As mentioned previously, our focus on distribution would be mostly focused on partnerships,
particularly with Energy Producers and Energy Brokers. We do feel that Energy consumers could be
approached directly using our existing sales model, assuming the appropriate training is provided.
A secondary approach would be to form a SaaS offering or PaaS offering. CA has placed considerable
effort in creating a strategy effort around the cloud. We believe with a partner’s assistance there could
essentially be a packaging around the notion of the “Virtual Power Plant” – supported by a Cloud
Offering. For example, you could have a community of people with solar power contributing the
generation of power to one another, using an Energy broker in the middle to support energy shortages.

8.1.4. Finances
While we attempted to build a high-level financial model for this recommendation, it turned out to be
nearly impossible given the short time frame we had to get the appropriate resources together. A
financial analysis would need to be completed before an investment any priority could be assigned.
In reviewing some of the work done with partners however, we have seen multi-million deals put on the
table. And most of the big Energy based clients, like Sempra, are large multi-million deals. We therefore
believe that the various types of customers that would be interested in this solution would support the
investment in building a full business case.
8.1.5. Technology
From a technology perspective we are recommending CA to leverage the work completed with the eco
team. In fact our recommendation follows their model: leverage existing products and solutions from
our portfolio and tailor them to create a more specific Energy industry portfolio based on the addition of
content, vocabulary and best practice process orchestration. Specific technology recommendations are
documented within this document. The most significant change from the status quo is the nature of
seeing the solution set as a platform, not just a product.
8.1.6. Services
Currently CA Services has a special group of resources that focuses on “Emerging Technologies”. While
the major of services that focus on the Energy industry itself would come from a partner, we see CA as
having billable Engineers that focus on tying CA products to other third party products in a sub-
contractor manner. They would also provide assistance to Partners in building out accepted
configurations and implementation best practices. In a manner similar to that handled through the
Service Provider program, we see the practice building out relevant playbooks and support artifacts to
streamline the implementation efforts.
8.2. Structural Considerations
8.2.1. Retrofitting existing IT management solutions to energy management
Currently CA has several products which could be tailored to better fit the Energy market. However, we
see the advantage of CA presenting its portfolio as a platform rather than a set of products. It’s tying the
products together much in the manner that the Service Provider solutions was put together.

8.2.2. Creation of Energy Management Cloud
One of the cornerstones of the new Energy model are the development of a Virtual Power Plants. We
believe the business model that supports the creation of these virtual entities can be support by a cloud
offering. Our basis for this is based on the economics of coordinating the efforts of the three key
stakeholders (i.e. Energy Producers, Energy Brokers, and Energy Consumers). The coordination of these
efforts is complicated and it’s unlikely that any one actor has the resources to assemble a full solution
and maintain it over time. CA has the ability to support this kind of platform and contribute to the
economics of the model in a meaningful way. In particular the ability to create a cloud platform, to
instrument and collect data and report on it via SLA’s, to price and bill utilization, and finally to
operationally manage the underlying network all contribute to taking advantage of a unique market
opportunity.
8.2.3. Going the last mile
In our research and interviewing both Energy producers and Energy brokers it became clear that the last
mile (e.g. getting to the last consumer on the supply chain) was very expensive. There are costs related
to laying out the infrastructure, maintaining it, and managing it in an economic manner. Consumers who
live in non-populated areas and looking for cable TV or high-speed internet can appreciate the issue.
There is a fair amount of investment in tying down the fiber required to provide these kinds of services.
The same is true for the Energy business. While there are many sources of energy and most locations
have accessibility to that energy, it is often effectively unmanaged. These locations are not connected to
the grid, and rarely are included in any kind of overall Energy conservation effort because they are
simply too small to service. CA products focused on the distributed network help reduce the costs of
going the last mile, providing an economic incentive for CA. In addition CA’s development of a common
architectural platform provides a support for network independence using messaging middleware.
8.2.4. Storage management
One of the great uncertainties of the new Energy business model is focused on storage. Over the past 20
years the number of energy consumption devices that require battery power has increase significantly.
In addition, the ability to generate energy on-demand has become cost prohibitive in many locations.
There simply is a limit to the amount of available energy. To help streamline the balance between
energy production and consumption, new storage technologies have been introduced. These, essentially
huge battery’s store energy for various periods of time and provide the means to reduce the amount of
energy required to meet existing power needs. They help avoid the spikes in energy generation as well
as take advantage of pauses in energy consumption and periods where energy production is at its
lowest costing tier. Finally storage management allows the distribution of energy to be more wide-
spread. Through products currently provided by CA, these storage centers can be proper instrumented,
monitored, and managed more effectively.

8.2.5. Data analytics and forecasting technology
From an analytic perspective, the new Energy model requires a fair amount of number crunching. There
is potentially millions of point of data collection, multiple actors including in this case, a huge factor of
State, Local, and National governmental reporting requirements. Optimizing the coordination of a large
system requires detailed analysis to determine the consequence of assessing impact making changes.
Energy is critical to our economy. Efforts made to forecast technology requirements and be able to fulfill
those demands are critical to our economy. Providing the ability to capture that data and generating
role-based reports will help to support local decision making while simultaneous achieving the
objectives we identified above around overall energy reduction. While CA doesn’t provide data analysis
tools per se, much of CA technology does provide the ability to capture data and the context from which
that data plays a role in the ultimately output.
8.2.6. Storming the Beach-head
CA’s existing customer list includes several large Energy based producers and consumers. All of these in
one way or another provide a mechanism for exploiting this opportunity in rapid fashion. While we only
talked with a few customers (of both types) they all showed an interest. In particular, we talked about
tying our ecoMetering technology with both our infrastructure management and service management
tools. They all had a level of interesting in how we could tie the pieces together. Keep in mind that we
stated up front that we will not produce energy-niche products, but rather would retrofit our existing
tool set. They still had a level of interest that we interpreted as being very positive.
In fact we believe in a couple of cases we actually implemented solutions that would similar to those we
are suggesting be migrated to a more cookie cutter approach surrounded by marketing, packaging, and
delivery. The net is that it is in the opinion of this team that we have the ability to exploit our existing
beachhead and create new ones across the various roles identified in this paper.
8.3. Exploiting the new Energy underlying business model
Every business has specific functions that need to be explicitly identified and documented in such a way
that wherever possible technology solutions can encourage coordination of activities through a
combination of data integration and process orchestration. In addition, those activities that require
human intervention (i.e. making decisions, etc…) should be supported through reporting, dashboards,
and other forms of convenience. We have identified below the major parts of an Energy business model
where we believe CA can take advantage of. We do not claim this list is exhaustive.
8.3.1. Production – How much is produced and when?
In the past individual sources of production have been spread out. Producing energy was generally
focused in large geographic areas. This had a significant impact on the costs of generating data because
of the uncertainty of demand (how much, when, what type, etc…)
To take advantage of the new Energy business model CA need to enable instantaneous forecasting by
real time data collect from various sources. This requires the ability to tie into various instrumented
devices, aggregate this data, and provide visibility to how demands and energy production can be best

matched. In particular we want to transition such that production is demand based, with less “stock”
required. We also feel that there should be a portfolio of “energy” services based on production types.
Finally there should be the ability to manage service levels and relevant costing / investment of energy
production. Currently we feel some combination of ecoGovernace, Catalog and Oblicore would provide
the underpinnings of Production.
8.3.2. Inventory – How much energy is available for distribution and where?
In the past the notion of inventory has been limited. The ability to store energy for long periods of time
is a technology challenge that is still under a great deal of research. While battery life and storage tools
have greatly approved, CA doesn’t have a direct ability to impact this. However from an indirect
perspective we believe there will be a need for Energy Producers and Energy Brokers to increase storage
and thereby have more locations with less space, and less storage costs. Parts of the infrastructure
required to support these “distributed” storage areas represents an opportunity. We see, for example,
having our infrastructure management tools supporting these locations from a operational view, as well
as leveraging Catalog to track consumer usage and broker pricing. Essentially selecting an energy plan
would be done through a catalog by tracking billing through pricing plans, subscriptions, and ad-hoc
requests.
8.3.3. Distribution – How often is energy produced?
Along with production and inventory is distribution. In the past basically energy production is scheduled
based on historical forecasts. To the extent that Energy Brokers were able to aggregate demand, it
provided the ability to normalize the demand. What CA needs to do is further support this aggregation
model by providing the ability to support a wider network of demand. To the extent possible this should
be based on the overall “profitably” of the unit as opposed to individual components. We believe CA can
handle this in two ways:
Implementation of Incident and Problem Management (IPM) and CCRM through Service Desk
Management of “Edge” network through Spectrum, Virtual Performance Mgr, Service Assure
8.3.4. Metering – How much energy is consumed and when?
One of the areas that we believe is CA’s strongest is in the area of metering – understanding the
consumption of energy, the patterns related to energy consumption, and the demands that caused that
consumption request to being with. Having this information is a powerful way towards influencing the
demand for Energy by better prioritizing where and when the energy demand will be created. For
example, should energy be consumed in a Data Center in South Dakota instead of New York City
because of the cost of energy? Should energy be consumed between midnight and 4 am instead of
during peak business hours? Having the ability to provide that metering data within specific context
provides a lot of value.
The means for CA to take advantage of this opportunity would be through providing real-time access to
consumption data along with the context that identifies the business achieved in incurring the costs. Key
to this strategy is the use of EcoMeter. We recommend this tools be advanced to include a wider set of

connectors to various energy usage agent tools. In addition, support for security management would be
appropriate for controlling when requests for energy can be submitted and fulfilled.
8.3.5. Positioning – Where are the energy plants placed?
Positioning is a critical decision that needs to be made by ALL three audiences. There is always the ability
to balance where energy is produced, how it is stored, and how it is consumed. In some cases there is
even a need to understand how it is reclaimed. In the past the Energy model has focused on high
volume areas with limited demand control options. However, with the types of energy production
possible, the locations of where energy is produced have changed. Today, for example, energy can be
produced locally through solar panels. The challenge is to harness the various forms of energy
production by support its generation and consumption are wider areas with better demand control. We
believe that the notion of a “virtual power plant” plays huge role in redefining the energy market
paradigm. The fundamental approach would be to provide the infrastructure to support distributed
positioning and optimized locations. Our research has provided some interesting insights with the
notion of cloud technology being one of the key cornerstones.
We believe, for example, that 3Tera / Cloud Optimize could help determine best infrastructure delivery
system while overall health Management (multi-network, remote control, redundancy, self-correcting)
would be a mechanism for streamlining the costs.
8.3.6. Pricing – How much does energy cost?
There is a very big difference between Pricing and Costs. Pricing could essentially be seen as the
financial relationships between consumer and broker while Cost is the financial relationship between
producers and brokers. What essential is to see how the legacy approaches, essentially being based on
location, should be pushed aside and new methods, like yield management would be put in place. Yield
Management is the method deployed by the airline industry when pricing tickets. The basic notion is to
assign the value of seats based on demand. Early demand gets the benefit of low costs, while real-time
on the fly demand would require a premium. Popularity of seating, or in the case of energy, the time of
production, would play a large factor in the price. Just the same, options like First Class would require a
premium whereas last minute seating, whose pricing options lose value as the flight prepares to depart,
would push prices down. We believe CA can help achieve this form of dynamic pricing based on
products like Asset Management to help focus on managing contracts as well as Service catalog &
accounting, which can price “products” based on several conditions while also assessing penalties.
8.3.7. Availability – When is the energy available for purchase?
The Availability of energy is similar to some of the other areas we covered. However in this case we are
focused on the method of ensuring the infrastructure for managing energy is available, not the specific
availability of energy itself. Like previous areas, we believe this needs to be more demand based while
maintaining its ability to be environmentally controlled. We need to think of availability in terms of
“networks” and “grids” and not just individual pieces of equipment or individual locations. Based on our
conversations we see some immediate opportunities along the following lines:

NetQoS, SSA, APM to focus on availability of energy distribution platform
APM to “protect” application performance
SSA to provide a common view of the “service” platform
WA (workflow automation) to execute energy conservation and production schedule
8.3.8. Payment – How is payment handled?
Finally, we see the manner in which payments are handled to be a rather unique opportunity for CA
based on our work with financial companies like First Data. Most Energy Producers, Brokers, etc… are
not set up to take payments in the variety of ways that would be helpful to a customer. We believe that
the older “point of presence” form of payment (like writing a check) will remain for some time. However
there should be other payment types available whether through your ipad or through some kind of pre-
paid energy card. While CA doesn’t directly provide those kinds of applications, several of CA’s largest
financial customers leverage CA technology to monitor their network. Products like Nimsoft and
Spectrum, for example, monitor these networks. Ensuring fast efficient collection of payment as well as
the security required to authorize payments or identify fraud are critical. CA provides the advantage of
adding a more holistic view of the Energy infrastructure network: from Demand Capture, to Production,
to Storage, to Distribution, to Payment, to Reclaiming

9. Going to Market - The CA Opportunity
Up to this point we have addressed several issues:
The Energy Industry and its critical market requirements
A New Business Model that supports the needs of Energy Management
Laying out an Energy Management Program
The various key stakeholders that would benefit from CA solutions
The need to take a platform approach as a solution offering
Potential value proposition that CA could exploit through partnerships
We discussed several mechanisms for CA to approach the market. Having reviewed these we believe the
following reflect the key short term requirements for entering the market.
Building a key partnerships and alliances
Retrofitting CA management products for delivery of Energy Management services
Leverage the investments in the cloud to provide a SaaS or Paas offering
Providing solutions for managing both virtual environments and highly distributed network
Sell derivatives of the stored energy data for effective energy management

10. Going to Market – Defining the Key Business Drivers
Based in our research there are several business drivers and business initiatives that are part of the
scope of the EDR. Currently CA ecoSoftware helps organizations to meet energy and sustainability goals
such as reducing carbon emissions, managing consumption, and cutting energy costs. It helps
organizations to become more efficient when using power and natural resources. CA ecoSoftware helps
organizations to do this by providing you with valuable, up-to-date information captured from your
environment and by supporting your efforts with a systematic governed approach. This information can
be communicated to stakeholders and used to drive continuous improvement. All these capabilities are
able to be executed and get value only for an Organization Data Center, or for a particular area on an
organization. Expansion on the cover will be required to be able to meet the business drivers and
business initiatives for DER, knowing that it could require going beyond to the data center scope or
particular organization section.
Identified in the mindmap below are the key Business Drivers and resulting Business Initiatives
10.1. Meet Regulatory Carbon Reduction Initiatives
As the Energy industry is aware there is a lot of emphasis placed by the Government on reducing overall
carbon initiatives. Some of these are voluntary; some have or will become law.

10.1.1. Modifying means of energy supply
There is a constant need to continuously find various ways of modifying energy usage. This can come
from modifying the various types of energy consumed, modifying the actual source, or changing the
usage pattern. We see a key to that as being able to accurately predict energy needs and configure
consumption such that it meets the regulatory requirement. We believe the Cloud plays a big role here
in both managing the usage of energy as well as bring a tool to provide an alternative to the typical data
center.
10.1.2. Governing energy usage
We see the governing of energy usage in three ways: carbon trading, customer support, and regulatory
compliance. Carbon trading is a bit complex and probably reflects functionality that is long term to CA.
However the ability to provide customer support through Service Desk, and Regulatory Compliance
through metering and reporting make this a potential high value area.
10.2. Managing Energy Shortages
Energy shortages exist although in many respects they are often hidden from view. Most often Energy
shortages are handled through brokering higher priced energy sources that are on-demand. While an
experienced Energy Producer or Energy Broker are aware of these costs, often the Energy Consumer
does not have the proper tools or visibility to see what is happening. Even if they can see what is
happening often they don’t have the ability to actually take action. The requirement then is at least two
fold – being able to identify what’s being used and reduce it accordingly.

10.2.1. Producing Energy on Site
In our research however we uncovered that the way in which many Energy Consumers see this problem
of visibility is in terms of how the produce energy on site. This actually falls in line with the Energy
Producer although there are radical differences in how each of these actors actually thinks about Energy
production. From a Production side we see the requirement to support adopt energy production devices
as identified in the mindmap below. But in additional to what you expect to see, we also identify Release
and Change Management because of the nature of how these production devices need to be constantly
managed and refreshed. Also too may be the raw number of devices.
10.2.2. Reducing on Site consumption
We also see a huge market opportunity in support the ability to have Energy Grids essentially provide bi-
directional communication with the various production devices. The Grids would essentially assign work
and consumption based on various factors. The Grid become more than just a traffic light but actually
becomes a traffic cop. This allows the system to be looked at from a holistic perspective not just
individually.

10.3. Increasing Energy “Turnover”
In manufacturing they have a common term called “inventory turnover”. Essentially it is a ratio showing
how many times a company's inventory is sold and replaced over a period. Generally the more inventory
turns the better. Essentially Energy Producers and Energy Brokers have the same demands put on them.
This is NOT just an issue of profit however. If you think about flying an airplane you could identify empty
seats as being a cost; this represents inventory and can’t be leveraged once the plan departs. The same
is true for energy unless there are storage banks in place. Energy once generated needs to be used or it
is lost. The mindmap below identifies the areas we believe are high value.

10.3.1. Managing DER Customers
As identified in the mindmap – there are a lot of areas of potential coverage here. We identify them
collectively below:
Utilize disparate energy sources
Reduce power transmission distance
Aggregators inform utility of available energy
Rate Card Support
Energy Production Service Availability
Customer Support
Bi-directional metering and control
The last four we believe CA has a natural advantage to.
Rate-Card Support would be a nature extension of Service Catalog, Service Accounting, and Olicore. Rate
Cards could be placed into the Service Catalog, much as pricing structures are placed in for specific
resources. Service Accounting can collect metered data (from ecoMeter, NetQoS, NimSoft) and generate
an invoice. In this manner the combination of tools provides the ability to tracking pricing by applying
the appropriate Rate Card, as well as auditing costs by comparing against a Energy Producers / Energy
Brokers invoice.
Energy Production Service Availability could be tied to the required infrastructure to deliver Energy on-
demand. Essentially by monitoring the underlying physical infrastructure to deliver energy, CA effective
has a means of reflecting its overall availability. You could easily imagine as well assigned work to
Service Desk if there is a problem that needs to be corrected.
Customer Support would be an extension of using the Service Desk as described above. Knowledge tools
could be in place to help with directing and answer questions to the right audience. Tracking tickets and
being able to tie customers with specific infrastructure would be a big bonus around managing
expectations.
Bi-directional metering and control would focus on the ability to track usage information as well as to
set the configuration of infrastructure devices through a centralized control structure. Essentially this
would be using Configuration and Release management to automatically update and configure Energy
Grid supporting devices as well as collection information from various agents. We identified this as
having a strong connection between the CA CMDB and SSA, along with feeders from ecoMeter.
Eventually this would include this would included tools like Virtual Performance Manager.

10.3.2. Generating Revenue from Excess Energy
While CA doesn’t directly focus on the notion of generating revenue as inferred here, it has the potential
ability to tie its ecoSoftware products to Service Catalog and Service Accounting. As these products
support a combination of metering, data collection, and pricing it could be outfitted with information
about rate cards, etc, as described above and turn an Energy Consumer into an Energy Producer or
Energy Broker.
10.4. Maintaining Health Transmission Structure
While we started to research this area we were not able to do much more than validate the need to
include it. Therefore we don’t make any specific recommendations at this time other than to document
for purposes of including for further analysis should it be warranted. We have provided the mindmap
below for reference.

11. Going to Market - Building the Architecture
While the previous section focused on the “what” by identifying market drivers and the approaches to
satisfy that demand, this section focuses on answer the question of “how”. Most of our existing
customers and partners in the Energy industry focus on using CA’s technology portfolio to satisfy many
of the items identified below. In fact a heavy part of this list came from talking with partner organization
that has leveraged CA tools to propose industry solutions. Our recommendations more or less were
identified by looking at these solution proposals collectively. Below is the high level mindmap of the way
we identified the various aspects of how CA Technologies can support the market.
11.1. Core IT Infrastructure (G)
When we talked with Energy Producers, Energy Brokers, Energy Consumers, and consulting firms that
focus in this area they all identified CA as being a strong player in managing the network. The issue is
that an existing network has traditional types of infrastructure device as well as Energy related devices.
In addition, leveraging new technology platforms like the Cloud has just started to become a major
contributor to their operational architecture. All of this provides a huge opportunity for CA by essentially
expanding the scope of its tools to support operational networking requirements of the aforementioned
actors.
As can be seen by the mindmap provide below we identify three major areas within Core IT
Infrastructure:
Security
Health Management
“Edge” Network Management

11.2. Core Energy Transmission Infrastructure (G)
In terms of managing the distributed network we see CA having huge opportunities based on the various
requirements for controlling locally autonomous operation sites from a centralized policy perspective .
The mindmap below identifies the key areas that resulted from our research.

11.3. Managing Adoption of New Services
One of the biggest areas we identified in our research was around the notion of looking at Energy
Producers and Energy Brokers from the perspective of a set of services. Such actors are constantly in the
need to add or revise services that meet the demands of the market as well as the demands of
regulatory bodies. While often these demands are met through IT Service Management, they are often
fractured in nature involving multiple stakeholders that are not coordinating their efforts. Often we
talked about the use of ITIL as a structure framework for tying various operational aspects together. Our
recommend supports these findings by suggesting improvements to the IT Service Management
portfolio as well as integrations with other products in the Service Assurance space to provide a holistic
solution.
The mindmap below identifies how we split the challenges into three major areas:
Updating existing infrastructure – leveraging ITSM tools and ITIL to manage infrastructure
Repairing infrastructure -- leveraging ITSM tools to repair distributed infrastructure
Regulatory compliance – leveraging ITSM tools to support the development of content and
reporting to ensure regulatory compliance. This might also include process orchestration.

12. Going to Market - Laying out a CA Product Opportunity Roadmap
In the following sections we have provided a set of use casts that describe possible roadmaps for various
existing CA products. Note that specifics of functionality would need to be reviewed separate from this
document. It would be recommended to work with a partner for that activity as they are closer to the
specifics of the Energy industry. It may be possible to work with CA clients to provide additional details
as well. However, with losing two people on the team, and CA World, we did not have the appropriate
time to do an exhaustive exploration of the topic.
12.1. Metering and Data Collection
Use Case Value Creation Activity CA Product Status
Remote Monitoring as a
Service
Consumption Management ecoMeter Needs
enhancement
Metering Energy
Consumption
enhacements to be
distributed.
Energy Governance as a
Service
Energy Governance and
enviromental performance
ecoGovernance Needs
Enhancements
Identity and Access
Management
Security EEM,
Site Minder,
SOA Minder
Needs
Enhancements
Federated Cloud Storage
Management
Data Storage BrightStore Needs
Enhancement
12.2. Data Aggregation and Analysis
Use Case Value Creating Activity CA Product Status
Federated Cloud Storage
Management
Data Storage BrightStore Needs
Enhancement
Service
Data Analysis ecoGovernance Needs
Enhancements
Identity and Access
Management
Security EEM,
Site Minder,
SOA Minder
Needs
Enhancements

12.3. Automated Device Configuration
Service Provisioning Provisioning Spectrum Automation
Manager
Exists
Process Automation Automation Service Workload Automation,
IT PAM
Needs
Enhancements
Service
enhancement
Identity and Access
Management
Security EEM,
Site Minder,
SOA Minder
Needs
Enhancements
12.4. Energy Accounting and Financial Mgmt
Metering Energy
Consumption
Financial Management ecoMeter Needs
enhacements to be
distributed.
Service
Energy Governance and
enviromental performance
ecoGovernance Needs
Enhancements
Service Management Financial Management Service Management
(Catalog)
Needs
enhancements
12.5. Change Control and Release Management
Change Management Change Management CA Service Desk Exists
Release Management Release Management CA Service Desk and CMS
(DMS)
Exists
12.6. Infrastructure Health Management
Energy Production
Performance Management
Performance Mangement ecoMeter needs
enhancements to
be distributed
Release Management Release Management CA Service Desk and CMS
(DMS)
Exists
Problem and Incident
Management
Problem and Incident
Management
CA Service Desk Exists

12.7. Demand Management and Service Provisioning
Service
Consumption Mangement ecoMeter Needs
enhancement
Release Management Release Management CA Service Desk Exists
Service Availability as a
Service
Availability Management Spectrum Service Assurance Needs
enhancement
Energy Production Planing Planing tbd Tbd
Customer Support Support Service Desk Exists
Service Provisioning Provisioning Spectrum Automation
Manager
Exists
Incident Management Incident Management Spectrum Service Assurance,
Service Desk,
IT PAM
Exists
Service
Energy Governance GRC as a Service Needs
Enhancements

13. Conclusion
The reality is that in putting this report together we realize there is as much he as we left out. There
simply was not enough time and resources to do a complete job. We believe the next major steps for CA
to evolve this research to the next level include:
Laying out the use cases. We provided a summary of them there. However they are not
complete as is and there are more possible that we did not have a chance to fully articulate
Identifying the required functionality of products that would support the energy industry
Create a coalition of partners and customers to validate the results of our findings
Leverage IT PAM to create industry standard process orchestration modules
Leverage Catalyst as a platform to provide for bi-directional communication and policy control
Build content into Service Desk through knowledge tools
Create a full SaaS and/or PaaS offering leveraging our Cloud tools and supporting platforms
Expand the data collection, data mining, and data reporting tools to better coordinate resources
Provide a set of standard services that reflect the Energy industry across actors
Even though we could not cover these areas we believe with the material provider herein that there is
ample evidence that CA has an opportunity to support this industry if a specific practice is created or the
existing ecoSoftware team is expanded past if’s current Data Center focus.

Energy Management - Business Case

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