In the fast-growing market for enterprise-scale energy management software, CA Technologies, CarbonSystems, IBM and Verisae are the leading providers, according a new global study from independent analyst firm Verdantix. The report, Green Quadrant Energy Management Software (Global) 2011, provides an authoritative benchmark of fifteen enterprise-scale applications. These were selected for analysis from a global scan which identified more than 60 energy management applications. Verdantix forecasts the US market for energy software will be worth $558m in 2014 and will reach a 51% compound annual growth rate over the five years from 2010 to 2014.
“The energy management software market is transitioning from a jumble of tactical, operational applications deployed at the facility level to enterprise-scale applications that enable firms to implement strategic energy management programs” commented Janet Lin, Verdantix Senior Manager and author of the report. “But buyers need to select energy management software with extreme caution. Our research unearthed a number of implementation train wrecks. Firms should only buy from software suppliers with deep expertise in an energy domain – such as grocery retail, data centres or commercial buildings – directly related to their firm’s business operations.”
The Green Quadrant study is based on 15 live product demonstrations, supplier responses to a 115 point questionnaire and in-depth interviews with 15 expert buyers of energy management software representing firms with combined annual revenues of $306 billion. The four market leaders — CA Technologies, CarbonSystems, IBM and Verisae – offer strong energy management functionality, proven integration with a wide range of meters and controls, deep expertise in one or two energy domains, an impressive customer base and meaningful implementation partnerships with firms such as CSC, Deloitte and Wipro.
Fast-moving new entrants to the enterprise-scale, energy management software market include C3, Hara, Infor, JouleX and SAP. These software suppliers, many of whom entered this market in the last 3 years, have strong product roadmaps and innovation strategies which bode well for the future. Equipment and services firms Johnson Controls, Pace Global and Schneider Electric offer energy management solutions which are well-aligned with market demand for energy data management and delivery cost savings as well as pure technology-enablement.
The 15 executives responsible for selecting, buying and implementing energy management software stated that they invest in the software to identify energy cost savings (87%), track financial data relating to energy spend (53%) and consolidate energy consumption data (47%). For these customers, energy monitoring and targeting is still the most required functionality, followed by energy consumption reporting then utility bill management.
“In the scramble to win market share in the enterprise-scale energy management software market some suppliers adopted a ‘boil the ocean’ product strategy offering functionality for every conceivable energy domain” commented David Metcalfe, Verdantix CEO. “Our research suggests that a product strategy focused on one or two energy domains is the most successful for suppliers and their customers. The leading applications have a track record of successful value delivery in domains like commercial buildings, grocery stores and data centres. Cost savings and improved energy efficiency require integration of energy software with a galaxy of legacy meters, controls and systems. Customers should take note – unless they work with a software supplier who knows how to get data into the application they will never get value out of the implementation.”
Note To Editors
Verdantix conducted a global scan and identified more than 60 energy management applications and found that only 15 merited inclusion in an enterprise-scale product benchmark. To meet the inclusion criteria, applications needed to have a product architecture that would support global deployments with 10,000 users, demonstrated integration with utility meters and building controls and coverage of core energy management functionality such as monitoring, targeting, reporting and utility bill validation. Software suppliers included in the Green Quadrant product benchmark are: 4Tell, C3, CA Technologies, CarbonSystems, ENXSuite, eSight Energy, Hara, IBM, Infor, Johnson Controls, JouleX, Pace Global, SAP, Schneider Electric and Verisae.
Verdantix is the fastest-growing, independent, analyst firm focused energy, environment and sustainability. Through our global primary research and deep domain expertise we provide our clients with strategic advice, revenue generating services, best practice frameworks, industry connections and competitive advantage. For more information visit: www.verdantix.com.
Elinor Newman-Beckett, firstname.lastname@example.org
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