The document discusses how current energy management solutions only address parts of the problem and lack holistic solutions. It notes that the term "energy management" has become vague. The ideal solution would be: 1) Cost-effective with quick paybacks even in low usage environments 2) Connected through supporting various wireless protocols and remote access 3) Intelligent through incorporating third party data and an automated rules engine 4) Technology agnostic by supporting different devices, systems, analytics and controls through a single interface. However, the author acknowledges that no single solution can fit all due to different needs across building types and portfolios. Any new technology will also be limited by existing infrastructure and skills in the target market,

1. The Internet of Things, Christopher Columbus and the Native
Americans
By: Benjamin Daly April 27, 2014
For those who have seen the movie "What the Bleep Do We Know" it is stated that when Christopher
Columbus first reached land, the natives could not see his ships because the “concept” of the large ships
did not exist to them. Only after several days did a medicine man first see the ships and then showed
each of the other natives that they did in fact exist. The concept put forth of course is that we can only
see what fits in our world view.
In many ways this same “concept” applies to the very audience that the emerging IoT software solutions
providers are selling to in the Energy Management market.
Since moving to the Bay Area I have learned the following things:
 That there are a lot of Energy Management software and hardware startup companies with
some really weak and incomplete offerings that have successfully received Seed or VC funding
that I am not sure how they will survive.
 It gets cold at 4pm.
 The rent is insane.
 The plastic bag law does not help with the cleansliness of the city.
 Everyone that owns a dog seems to own some form of a Chihuahua or weird Chihuahua mix like
a Chipughua or a Chipoodel.
 Everyone’s iPhone or Android screen looks like these-

2.  It does not need to be Halloween and is a “common” occurrence to see people dressed like this
(this picture taken out front of my building) walking around in the city-
 And that there are a lot of Energy Management software and hardware companies that have
only nailed a piece of the Energy Management equation, have the technical capability in house
to solve the equation in its entirety but unfortunately haven’t realized this.
When it comes to the IoT solutions as applied to the Energy Management market, many of these
solutions only solve a piece of the problem and none of them provide the holistic solution that the
market really needs.
To further complicate things the term “Energy Management” has become so ubiquitous that it is almost
meaningless. Anything from the procurement of electricity, to utility bill analysis, or the implementation
of a building management system is put into the category.
For instance, many energy tracking solutions provide companies with energy visibility but no control of
energy consuming assets such as lights or heating systems. Other systems for building automation or
the software extensions of those systems provide extensive control, but don’t always provide
integration into procurement or demand response programs. There is no “one size fits all model” in this
market and building managers should be empowered to make decisions determined by their corporate
priorities and vertical industry expertise not by the offerings of the suppliers.
Adding to the confusion the terms EMS (Energy Management Systems) and BMS (Building Management
System) are frequently used interchangeably. BMS systems are generally hardware-based control
systems responsible for controlling HVAC and perhaps lighting loads in commercial and industrial
facilities. Not too long ago BMS systems were the ONLY form of EMS systems out there. But in recent
years there have been a wide range of new products and services entrants to the market that are also
generally and I stress the word generally referred to as EMS.

3. These solutions could be as disparate as:
 Analytics-based software systems that connect to the BMS and mine the data to identify
equipment problems and savings opportunities.
 Energy Algorithm software that is nothing other than a fancy scheduling, rules or alerts engine.
 Rules engines that are not really that and just elaborate device scheduling and alerts systems
incapable of conditional logic.
 Software systems that capture utility billing data across all facilities in a portfolio and offer
analysis aimed at finding billing problems as well as facility benchmarks.
 Combined hardware and software systems that remotely control HVAC over the Internet.
 Systems that monitor electricity usage on main circuits and provide analytics around equipment
performance and energy efficiency.
 Software that leverages interval data and modeling to provide a virtual energy audit and suggest
efficiency measures.

Even some Demand-Response systems are sometimes referred to as energy management systems, and
there are more and more new entrants to the market every day adding to the confusion.
Clearly there has been a huge evolution and broadening of the EMS market. Internet connectivity and
Cloud-based solutions have dramatically changed what is expected of a controls-focused EMS. Low cost
sensors, devices and wireless communications have dramatically decreased deployment costs. Analytics
have created a range of new cost savings opportunities by aggregating data to the enterprise level
providing visibility that did not exist before.
The disruptive technology emerging in the IoT is causing a convergence of functionality coming from a
variety of different directions, such as a provider of traditional BMS systems that has added Internet
connectivity and web-based software or a provider of smart thermostats that has added additional
monitoring and analytics capability. So what are the components of the ideal solution?
My definition is characterized by the following:
 Cost-effective – incorporating state-of-the-art components and approaches that provide
implementation paybacks in both high and low load factor environments well under a year
without rebates or incentives.
 Connected –must support multiple wireless protocols and offer device connectivity and control
both locally and remotely over the internet on web browsers and mobile devices.
 Intelligent – must incorporate third party Cloud feeds like Utility Pricing and Demand signals,
Main Meter, Sub-Meter and Renewable Energy generation data into a robust rules and alerts
engine which is capable of automating load control based on schedules, triggers and monitored
data thresholds.
 Technology Agnostic – must support and present in a single interface a combination of controls,
analytics, dashboards, multiple sets of data and a range of manufacturer’s devices and systems.
Of course, what may be needed for a portfolio of large commercial buildings is not the same as what is
needed in industrial facilities, and is different from the most effective system for small box retailer

4. Therefore, there can never be a one-size fits all solution or can there? I believe this is possible today
with the current technology available but I also believe this:
Referring back to Christopher Columbus in the beginning-
“Any new technology in the Energy Management space no matter how revolutionary it is will always
be limited by the existing infrastructure and technological aptitude of the market it is aimed at.
I welcome any feedback and input-
Benjamin Daly April 27, 2014