JouleX develops sustainable energy management systems for the enterprise. Its flagship solution, the JouleX Energy Manager (JEM), provides Global 2000 companies and government agencies with the ability to monitor, analyze, and manage energy usage for all network-connected devices and systems, including in distributed offices, data centers, and facilities. JouleX says that JEM decreases energy costs by up to 60% while ensuring availability and providing reporting that helps companies to comply with emerging carbon monitoring requirements.
The company, which has its headquarters in Atlanta and its R&D labs in Munich and Kassel, Germany, was founded in 2009 by Josef Brunner and inspired by a smart meter security architecture project. Brunner was designing the security architecture for smart meters for a large building control manufacturer in Germany. The company provided lots of data from buildings about how much energy each was being consumed, and Brunner realized that an unoccupied building was consuming nearly as much as an occupied one. They company dug into the data and realized the IP infrastructure was wasting energy on nonproductive time.
JouleX’s president and CEO, Tom Noonan, is also the co-founder and former CEO of Internet Security Systems (ISS), which was acquired by IBM for $1.5 billion. Prior to ISS, Noonan held senior positions at Dun & Bradstreet Software, where he was vice president of worldwide marketing. Before joining D&B Software, he specialized in automated control systems for computer-integrated manufacturing. Noonan also founded two successful technology companies: Actuation Electronics, a precision motion-control company, and Leapfrog Technologies, a software development company.
According to the The Evolution Of Enterprise Carbon And Energy Management Software, a study done by Forrester, over the next two years the enterprise carbon and energy management (ECEM) software market—for reducing carbon emissions and performing energy management—will grow at an annual rate of 83% and be worth $903 million by 2013. The market was worth $163 million in 2010. Says JouleX, “Conservation is the single largest reservoir of energy that we can identify in our lifetime. If we help the world reduce that energy waste by 40%, that is almost $3 trillion saved, but it is also an enormous amount of carbon and greenhouse gas removed, leaving the world a better and cleaner place.” The company’s top target segments are financial services providers, government, healthcare institutions, telecommunications providers, and transportation and logistics providers.
The JouleX Energy Manager (JEM) is designed to help companies monitor, analyze, and manage their energy use. It does this through four main steps:
JouleX’s pricing model is subscription based and calculated on a per-device basis. Licenses are around $10,000 for an average office’s needs. The company has more than 65 customers using JEM and says that initial customers are finding they can reduce energy consumption by 30% strictly by focusing on personal productivity device power management. Additional opportunities for savings across the network and data center infrastructure demonstrate savings of up to 50%.
The company also has several OEM deals. Deutsche Telekom is one reseller of JEM technology, and the product will be marketed to Deutsche Telekom’s 2.5 million business customers. It is set to become the basis of the telecommunications company’s energy portfolio, for which it hopes to achieve a turnover of €1 billion in its new energy business unit, which includes smart grids, by 2015. Other deals are an agreement with Orange Business Services, which has launched its IT Energy Audit assessment services; and with Cisco, which accepted JouleX into its EnergyWise partner program. Further, JEM is fully integrated with Intel’s Data Center Manager.
Revenues are more than $1 million, and the company has raised more than $2.9 million in outside capital thus far: Following a seed round in March 2009 and bootstrapping, JouleX had a $1.7 million Series A from TechOperators and Target Partners in March 2010 and a $1.2 million bridge round from these investors in December 2010. The company is raising funding at present and expects to announce a major round early in the third quarter of 2011.
With the next round of funding in place, JouleX plans to rapidly grow the sales and engineering groups. Additionally, it will be pursuing a dual path for customer acquisitions, one that involves acquiring customers directly and through more OEM and partner relationships.
There is no exit strategy. “Energy waste is one of the most contemporary issues of our day, and we have a unique opportunity to build a great company that generates profits for our shareholders, that reduces waste and unnecessary operational costs for our customers, and leaves the environment cleaner and more healthy for future generations,” says Noonan. “We are in it for the long haul.”
“The Sustainability Impervative” by David A. Lubin and Daniel C. Esty. This article, published by Harvard Business Review, explains why companies need sustainability strategies.
Towards Smart Grids: eMeter CEO Cree Edwards
This segment is a part in the series : 1Mby1M Deal Radar