PANORAMIC POWER EXPANDS FOCUS TO OPERATIONAL PERFORMANCE

JANUARY 2015

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PANORAMIC POWER EXPANDS FOCUS TO OPERATIONAL
PERFORMANCE

January 2015 Licensed Content

EXECUTIVE SUMMARY
Founded in 2009, Panoramic Power brings together non-invasive, wireless and self-powered
device level hardware, cloud-based software and supporting services to help firms manage
energy demand and improve operational performance. In December 2014, Panoramic Power
announced that it had raised a further $7 million in Series B funding with software firm Autodesk
joining existing investors. To hear more about Panoramic Power and its strategy going forward
after this latest investment, Verdantix spoke with CEO, Yaniv Vardi and Senior Director of
Marketing, Jon Rabinowitz. This report provides corporate Energy and Facilities Managers, as
well as strategy leaders, Business Development Directors and Chief Marketing Officers within
firms looking for a software partner, with an overview of Panoramic Powers strategy for 2015.

TABLE OF CONTENTS FIGURES & REFERENCES

PANORAMIC POWER EXPANDS FOCUS TO Figure 1. BMS Penetration By Building

Footprint (North America)
OPERATIONAL PERFORMANCE

Wireless Hardware Provides Granular
Visibility Into Energy Consumption
Development Is Focused On Functionality
For Energy And Facilities Services
Finding The Right Partners Is Key To
Panoramic Powers Growth Strategy
ORGANIZATIONS MENTIONED
ABB, Autodesk, Burton Energy, Cisco,
Continental Automated Buildings
Association, Direct Energy, Elster EnergyICT,
E.ON, GE, GridPoint, Honeywell, ICONICS,
Johnson Controls, JouleX, Matrix, Mazzetti,
Microsoft, NorthFace, Rogers Electric,
Schneider Electric, Siemens, SustainCo,
Verisae, VF Corporation, ViryaNet, Vornado,
Wrangler

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VERDANTIX PANORAMIC POWER EXPANDS FOCUS TO OPERATIONAL PERFORMANCE

PANORAMIC POWER EXPANDS FOCUS TO OPERATIONAL PERFORMANCE

Founded in 2009, Panoramic Power launched its non-invasive, wireless and self-powered
device level hardware, and cloud-based software in 2011 to help firms manage energy
demand and improve operational performance. To help customers extract value from its
solution and deliver tangible outcomes, Panoramic Power launched its support services in
2013. Its headquarters and development centre are located in Kfar Saba, Israel, with an
additional office in New York. In December 2014, Panoramic Power announced that it had
raised a further $7 million in Series B funding with software firm Autodesk joining existing
investors. To hear more about Panoramic Power and its strategy going forward after this
latest investment, Verdantix spoke with CEO, Yaniv Vardi and Senior Director of Marketing,
Jon Rabinowitz.

Wireless Hardware Provides Granular Visibility Into Energy Consumption

Founded in 2009, Panoramic Power is a provider of hardware, software and services to help
firms manage energy demand and improve operational efficiency. Initially targeting firms
with large portfolios of retail and commercial buildings, Panoramic Power now also provides
solutions for firms within manufacturing sectors. Named customers include Autodesk,
NorthFace, Vornado and Wrangler. Panoramic Power provides customers with:

Non-invasive wireless hardware to measure consumption. The majority of buildings in

North America with footprints below 200,000 sq ft do not have a Building Management
System (BMS) installed and therefore offer little visibility into building performance (see
Figure 1). If performance is being monitored it will likely only be based on utility meter
data. Panoramic Power has developed a range of self-powered, wireless sensors that clip
onto the outgoing wire from a circuit breaker. The sensors are easy to install, do not
require mains power to be switched off during installation and do not require
maintenance. The sensors deliver visibility into energy consumption at the circuit or
device level, and are well suited to the retrofit market as they are non-invasive.

Enhanced visibility through cloud-based software. Capturing data is the first step in
being able to assess the performance of buildings. Panoramic Powers PowerRadar
energy management software solution enables firms to centralize all of their data across
their entire portfolios. PowerRadar connects to Panoramic Power sensors through
wireless gateways; it can also integrate with meters and BMSs from other manufacturers
that are already installed. The software provides users with real-time visibility at the
individual circuit level allowing them to monitor performance and identify potential
issues as they occur.

Support services to help identify opportunities. In 2013, Panoramic Power introduced

a support services team to help ensure customers achieve maximum value from
implementing the Panoramic Power solution. Services offered by Panoramic Power go
beyond implementation and general IT/software support. Included in the licence fee for
the software is a basic level of service to help customers generate and automate reports
for identifying improvement opportunities. Beyond this, Panoramic Power offers
services to generate and automate custom reports, as well as hold sessions with

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Figure 1. BMS Penetration By Building Footprint (North America)

27
100%
76
90%
189
80%
327
70%

60%
564
50% 2,673
680
40%
567
30%
267
20%

10%
30
0%
<50k sq ft 50k - 100k sq ft 100k - 200k sq ft 200k - 500k sq ft >500k sq ft

No BMS Installed BMS Installed

Note: Data labels are rounded to the nearest thousand
Source: Continental Automated Buildings Association (CABA), Verdantix

customers energy and facilities teams to discuss progress and identify further
improvement opportunities.

Short payback periods. Panoramic Powers low cost and easy-to-install hardware helps
it deliver a very cost-effective granular solution for customers. Panoramic Power expects
customers to be able to achieve payback within six to nine months by helping firms
identify energy saving and operational improvement opportunities. VF Corporation, a
global apparel and footwear firm, implemented Panoramic Powers solution at its
350,000 sq ft distribution centre in Oklahoma, after previous success in four of its
NorthFace stores. Primarily targeting HVAC improvements, VF Corporation has
reduced energy bills at the facility by 5%, which translates into estimated annual savings
of $50,000 and payback within six months.

Development Is Focused On Functionality For Energy And Facilities

Services
Panoramic Power brings together non-invasive device level hardware, cloud-based software
and supporting services to help firms manage energy demand and improve operational
performance. While the firms IP sits within its hardware, Panoramic Power is focusing on
improving its software and services to help firms use the data its sensors capture to improve
operational performance. In 2015, Verdantix heard that Panoramic Power will:

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Focus on customer operational excellence. In line with a shift in the market, Panoramic
Power is expanding its solution to help firms understand the operating performance of
assets and facilities. Energy efficiency will be only one component of how Panoramic
Power will help firms improve operational performance. For commercial buildings, the
focus will be on reducing energy costs along with the CAPEX and OPEX associated with
maintenance. For industrial firms, improving productivity normally takes precedence
over energy efficiency, but many firms target some form of operational excellence. A
global industrial firm has used Panoramic Powers hardware and software to identify
conveyor systems running sub-optimally; resolving the issue will deliver $270,000 per
year in financial upside from productivity gains. The customer achieved payback in one
week.

Verdantix take: While energy management is a growing concern for firms, the energy
management software market has not seen the growth that firms expected back in 2008 when
many apps were launched (see Verdantix Building Energy Management Software Market Size
and Forecast 2013-2019). Broadening the usage case for software beyond energy management
will help suppliers deliver greater benefits to customers, tap into established facilities budgets and
increase adoption (see Verdantix Who Benefits From Energy Management Software).

Invest in in-house domain expertise. Energy management, and facilities management

even more so, is more than a big data problem. Understanding energy and how it is
consumed within facilities requires technical and engineering expertise. To deliver
effective support services to customers, Panoramic Power intends to increase the
number of employees that have engineering and energy management expertise.

Verdantix take: A lack of industry and domain expertise is the most common complaint
customers have of energy management software suppliers. Why? Because delivering an effective
solution requires energy domain expertise (see Verdantix The Future Of Energy Management).
For example, the energy and business concerns of a retailer will be different to that of a
manufacturing firm. Suppliers looking to develop fault detection and diagnostics capabilities to
support building maintenance need to invest in energy, engineering and domain expertise.
Suppliers should also leverage the experience of customers and strategic partners where possible.
Software supplier ICONICS has incorporated a lot of the work it has done alongside Microsofts
internal facilities team within its solution, while GridPoint has developed a new usage case with
one of its retail customers (see Verdantix GridPoint Mitigates Risks From Natural Disasters).

Expand the intelligence within its software to deliver actionable information. Energy
data alone does not deliver value or savings; firms must interpret and act upon the data
before savings are achieved. Rather than requiring customers to spend time using its
solution to mine vast amounts of data, Panoramic Power is building analytical
intelligence within its solution to identify issues and push actionable information to the
appropriate users. Through understanding the operating energy consumption of an
asset and comparing this with actual performance, Panoramic Power will be able to
identify assets that are running sub-optimally and diagnose potential causes.

Verdantix take: Firms moving from monitoring to managing energy are increasingly expecting
software solutions to proactively identify and alert users to issues. Energy management software

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firms need to invest in fault detection and diagnostics along with workflow and task management
capabilities, without which suppliers risk frustrating users with nuisance alarms (see Verdantix
Energy Software Delves Deeper Into Asset Management). The ability of a solution to deliver
actionable intelligence should be the number one capability any firm looks for in a software
partner. It is this capability that will enable services firms to cost effectively scale operations.

Develop mobile capabilities. To effectively deliver operational improvements,

Panoramic Power is developing its mobile capabilities so that it can develop closer links
with customers maintenance and facilities teams in the field. Panoramic Power is
improving its own mobile application as well as investigating potential integrations
with third party workforce management systems.

Verdantix take: As energy management software suppliers expand further into asset management
and facilities management, they will have to develop more robust mobile capabilities. Having a
simple mobile app with dashboards is not sufficient for maintenance teams. Suppliers, such as
Elster EnergyICT, integrate directly with customers workforce management systems, while
Verisae acquired its own workforce management capabilities with the acquisition of ViryaNet (see
Verdantix Verisae Gains Momentum With Acquisition Of ViryaNet).

Incorporate controls integration to close the loop. One of Panoramic Powers strengths
is its ability to capture circuit or device level data using its non-invasive wireless
sensors. Panoramic Power is now increasing its capabilities to not only read data from
BMSs, but also utilize BMSs from manufacturers, such as Schneider Electric and
Siemens, as a control layer for actively managing the performance of buildings.

Verdantix take: As the interface between facility managers and mechanical and electrical
equipment within a building, a well-managed BMS allows users to control, measure and identify
faults using real-time performance data. Firms with advanced energy management strategies and
suppliers of energy services are using web-based solutions to integrate and manage multiple
BMSs centrally (see Verdantix Evolving Customer Usage Patterns Fuel BMS Innovations).
Energy management software suppliers need to be able to integrate with current and legacy
BMSs from multiple suppliers. Closer integration with BMSs increases capabilities and reduces
implementation costs. Firms are also prioritizing integration with BMSs during the selection
process (see Verdantix Green Quadrant Building Energy Management Software).

Finding The Right Partners Is Key To Panoramic Powers Growth Strategy

Panoramic Power expects significant top line growth in 2015, as it closes the loop to deliver a
full service, invests in its product and prospective customers gain confidence from an
expanding portfolio of customer case studies. It is also counting on strategic partners to bring
customers onto the platform prospectively accounting for 60% of revenues in 2015.
Panoramic Power will establish partnerships with:

Firms requiring circuit or device level visibility to deliver energy services. Panoramic
Power will continue to sell directly to end customers, but partnerships with energy
services suppliers will help overcome difficulties selling to firms that have no internal
facilities teams (see Verdantix Toolkit: Business Case For Building Energy Management

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Software). Panoramic Power is partnering with suppliers of energy or facilities services.

Firms, such as Burton Energy, Mazzetti and SustainCo, are using Panoramic Powers
hardware to cost effectively increase the granularity of data capture, as well as its
PowerRadar software solution to gain actionable insight from data captured. Global
software firm, Autodesk, has invested in Panoramic Power and the two companies will
be releasing joint offerings in 2015.

Verdantix take: As energy management continues to gain market traction, there is an increasing
number of firms providing energy services or incorporating energy management, for example,
within facilities or maintenance contracts. Services suppliers are partnering with energy
management software suppliers to broaden and improve the services they offer customers. With
energy management software proving to be a hard sell on its own, smaller software suppliers are
increasing their emphasis on generating revenues through partners (see Verdantix Building
Energy Management Market Size And Forecast 2013-2019).

Equipment manufacturers looking for closer customer relationships. Panoramic

Power has identified manufacturers of equipment, such as pumps and compressors, as
another partner channel for its solution. Panoramic Power has had interest from
manufacturers of energy intensive equipment that are looking at how monitoring the
energy consumption of their products can help them deliver a better service to
customers, manage warranties and establish closer relationships that will benefit sales
pipelines. In 2014, Panoramic Power partnered with a global provider of industrial
motion and control technologies. The partnership combines expertise in controls and
refrigeration management with Panoramic Powers device level solution.

Verdantix take: The worlds largest equipment manufacturers, such as ABB, GE, Honeywell,
Johnson Controls, Schneider Electric and Siemens, are all developing equipment, software and
services propositions. Each proposition helps generate revenues for the others. Cisco followed this
business model, acquiring energy management software supplier JouleX in July 2013 (see
Verdantix JouleX Key To Ciscos Growing Technology Services Offering). For equipment
manufacturers that do not have the same resources or funding, Panoramic Power offers a way to
quickly develop a similar proposition.

Utilities targeting differentiation in deregulated markets. Utilities operating in

increasingly competitive deregulated markets need to find new ways to differentiate
themselves. Leading utilities are investing in developing energy services propositions as
a way of differentiating from competitors, developing new revenue streams and
improving customer relationships (see Verdantix Matrix Deal Fuels Competition In UK
Energy Services Market). Direct Energy Business is partnering with Panoramic Power to
offer its commercial and industrial customers in North America a cost-effective, device
level monitoring solution that requires minimal capital investment on the part of
customers.

Verdantix take: A myriad of factors is putting pressure on the traditional utility business model
witness the radical steps taken by E.ON in Europe. Verdantix expects to see an increasing
number of utilities embark on lengthy transformation processes that will see them overhaul
almost every aspect of their business, including customer engagement. Utilities that are looking

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to offer a complete energy management solution to commercial and industrial customers should
consider partnering with Panoramic Power. The low cost, non-invasive and quick to deploy
sensors are ideal for the retrofit market.

Installation partners with a national presence to help with scalability. Panoramic

Power is investing in its internal ability to offer central support services to customers,
but plans to use partners for installation support; while strategic partners such as
Direct Energy will manage installations for their respective customers. Panoramic
Power will use installation partners in key regions, such as Rogers Electric in North
America, for direct customer installations and to help manage customers with a national
footprint.

Verdantix take: Smaller software suppliers, such as Panoramic Power, need to build relationships
with installation partners to help them scale quickly and manage national accounts. The ease
with which Panoramic Powers solution can be installed will attract potential partners, as little
training is required and it is not a labour intensive process. Installation partners will see
Panoramic Power installations as a useful introduction to new customers, enabling them to
position further mechanical and electrical or maintenance services.

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