“Best Value/Risk Ratio” The Case for End-to-end Standards

Bill VogelTrilliant Networks, Inc.

August 21, 2007

 

                                                               

Trilliant Networks Summary

• Major AMI Company• Largest Project in North America – Hydro One• One of the Largest R&D organizations• Over $50m in AMI revenues• Over 40 AMI Customers• Over 300 employees

• Leader in Standard-based AMI• Industry Standards-based Development Tool

• Over 90 percent use Trilliant to develop and test AMI• First-to-market – end-to-end, standards AMI

• Introduced ANSI Standards AMI over 6 years ago• First Open Cellular Solutions for C&I• First Standard-based Mesh Network

• End-to-end, international standards

Market Context:AMI Interoperability

1. Demand is strong and Broad-based• Large, international market • Economic and political forces • Shift to AMI from AMR

2. Central to a vibrant energy economy• Reflect true cost of supply in retail service• Sustainable resources and improved service• Promises of demand and grid management

3. Industry leaders focused on standards • Networks, advanced metering and integrators• Market are focused on clean/green technology• Integrate applications and devices

4. Standards optimize value/risk• Affordable, consumer-friendly demand response• Integration of AMI and Demand Response• Platform for enterprise-level integration

Proprietary

Suppliers

Major PlayersMajor Players

InternetInternetCommunicationsCommunications

EnergyEnergyTechnologyTechnology

SystemsSystemsIntegrationIntegration

InnovatorsAMIDemand ResponseSmart Grid

SuppliersMeter Suppliers

AMR Suppliers1st Gen Networks

AMI

AMI Interoperability:Vibrant Energy Markets

Holistic resource management…

• Differentiated/critical peak prices

• Measuring 2-way energy flow

• Turn off delinquent accounts

• Real-time demand control

• Managing grid assets

• Consumer messaging

• Monitor the environment

• Control distributed generation

• Transparent consumer services

Catalyst for sustainable resources; Value beyond metering

SmartGrid

HybridGeneration

EnergyConservation

EnvironmentalSensors

ElectricVehicles

Homeland Security

SmartHome

SmartSolar

AMI

Perspective on Standards

Investment…• Risk Mitigation

• Supplier• Technology• Project

• Choice• Devices • Networks• Software Solutions• Service Providers

• Costs Curves

• Productivity

Technology…• Agreement

• Interoperability• Networks• Applications• Data

• Interconnectivity• Networks• Devices (peer-to-peer)

• Productivity• Suppliers per problem• Learning curves

Integration, Without Lock In…

(=)

(≠)?ApplicationsApplications

ExchangeExchange

MediaMedia

NetworksNetworks

“End-to-End”

Which Standard?

The wrong question…

Which standard is common?

ExchangeExchange•SOA, Web Services, XMLSOA, Web Services, XML•Applications SpecificApplications Specific

ApplicationsApplications•ANSI, IECANSI, IEC

•Java, J2MEEJava, J2MEE•SOASOA

NetworksNetworks•Internet ProtocolInternet Protocol

MediaMedia•Bluetooth IEEE 802.15.1Bluetooth IEEE 802.15.1

•HomePlugHomePlug•WiFi IEEE 802.11WiFi IEEE 802.11

•WiMax IEEE 802.16 WiMax IEEE 802.16 •Zigbee IEEE 802.15.4Zigbee IEEE 802.15.4

AppsApps

X∆X∆

MediaMedia

NetNet

AppsApps

X∆X∆

MediaMedia

NetNet

CompatibilityCompatibility

ConnectivityConnectivity

InteroperabilityInteroperability

CollaborationCollaboration

Investment Impact

1. Functionality [Options]

2. Performance[Competition]

3. Capacity[Bandwidth and efficiency]

4. Cost[Competition]

?

Today Future

Standards Strategic Value

• Supplier Collaboration• Indirect• Direct

• Providers Focus On Solution Improvements• Component element improvement via competition• Features & functions via leveraging components

• Broader Solution Provides a More Holistic Benefits• Components leveraged in delivery of complete offerings• Competition spurs functional improvements

Beware of The Hype

ConvergenceHistory Does Not

Support a Single Standard Future

Single Standard Do Not Support True Interoperability

Chip CentricBluetooth

Scenario Act one of two

Zigbee 1.0 Act one of two

Supplier Choices

Influence

1. Forge Alliances• Like-minded Parties• Future Acquisitions

2. Protect Install Base• Deflect to future standards• Compartmentalize customers

and technology segments• Use patents to protect

3. Adapt Proprietary Plans• Ensure proprietary

participation • Upgrade remotely• Add Functions

Collaborate

1. Solution Interoperability• Advanced Metering• Demand Response• Customer Communication• Grid and Asset Management

2. Partner On New Requirements• Service Levels• Customer Devices• Feature & Functions

3. Partner to Adapt Services• Service Levels• Customer Devices• Feature & Functions

Plug ‘n Play Network Solutions…

Flexible Architectures

Enterprise

Backbone

Neighborhood

Home/Personal

Conclusions

The Requirements of the Energy Market are vast and growing

Dynamic Markets Require Interoperable Infrastructure

End-to-end Standards Support Interoperability and Therefore Broader Solution Strategies

End-to-end Standards Do Not Imply a Single Element, Rather They Require Multi-layered Standards

True Interoperability Requires Supplier Collaboration to Solve Participant-driven Project Market Requirements