IP Controllers Selling the Leading Product Line Carl Barnard

Agenda Rise of IP in Building Systems Why IP? Selling the benefits of the ECLYSPE IP solution A new audience - the IT professional Our new ECLYPSE IP controllers from a sales perspective ECY-VAV ECY-S1000 Where are you going to sell the IP controller? ECLYPSE IP system architecture simplified for sales ECLYPSE ENVYSION Graphical User Interface standalone with ECLYPSE AX server with ECLYPSE AX server and Supervisor Live demonstration of our new ECLYPSE ENVYSION GUI How does this change my business as a System Integrator? Or is this business as usual? Welcome Ladies and Gentleman to my segment: “IP Controllers – Selling the leading product line”. We have our new ECLYPSE ENVYSION graphical user interface loaded on our much sought after ECY-S1000 IP controller, and I have the pleasure of taking it out for a live test drive. Before I venture down this road, I would like to spend a few minutes discussing IP in BAS and building systems generally. More and more projects are specifying IP based control and we should expect the customer’s CTO or IT professional to be sat right across from us as we try to close the deal. So I’ll touch on the IT audience and some of their expectations. Next – we‘ll look at our new IP controllers from the sales perspective. I am going review key selling features of both the ECY-VAV and ECY-S1000, look at some of the practical applications, and present the ECLYPSE architecture down from a layman’s point of view My mission here is too keep it simple, and tell our IP story as though we were sat in front of a new prospective end user customer

Traditional use of IP in Building Systems Traditional silo’s, separate servers utilizing slower serial networks for HVAC, lighting, security, …… IP building Infra-structure dedicated LANs Traditionally – especially in North America – different building systems have been silo’ed by Division. Historically, HVAC has been separate from lighting, from card access, CCTV, Fire, Elevators and so on. Whether card reader, fan coil controller, or lighting controller……….everything has been connected using a twisted pair of wires. Back in the early 80’s, we had baud rates as low as 2400 bps. Although communication baud rates steadily increased over the years and today….the vast majority of BACnet systems get installed using MS/TP communications at 38.4 Kbaud – despite the latest BACnet standard referencing 115 Kbps as a designated speed. On the Echelon LON side of the house – 78 Kbps has been the norm for over two decades. The very familiar Ethernet cable made it’s debut in most buildings back in the 90’s too and has become as ubiquitous as getting water from your tap. So now the different silo’s or islands of HVAC, Lighting, etc used dedicated LANS or more recently – they can potentially speak to one another – assuming they are using an open protocol or some other method of exchanging data like XML, or directly reading/writing a database like SQL. But the data exchange is happening at a high level an d we have sa single point of failure. Less than an optimum use of resources, not very elegant and higher life cycle costs for the owner. Card Access HVAC CCTV Lighting

The Rise of IP in Building Systems Number of IP devices associated with building systems & equipment is rapidly increasing Chillers Energy Meters Switchgear Air Handling Units CRACs VFD’s VRF Lighting Security Whatever category of building equipment you choose to research: Air Handling Units, Meters, VFD’s, Generators, CRAC’s, VRF, Lighting , Security Although it may still be an option in some cases over EIA-485, everything you see in this slide and you can plug-in with IP! Many of pieces of equipment offer embedded webserver functionality - meaning that out of the box – using just a browser or mobile app – the customer has an immediate graphical user interface – the equipment manufacturers have open to reach out directly to the customer and define the customer experience. For example, Multi-stack chillers have offered this capability for over many years now.

The Rise of IP in Building Systems Trend is towards more IP devices (more with embedded web server) Serial communication is on the decline EIA-485 has practical and real limitations Data for trend collection BACnet over MS/TP offers no security So what is driving this trend towards IP connectivity? Why do we expect the use of the trusted twisted pair continue to decline? Everyone here knows that you can run twisted pair a couple of thousand feet without repeaters, switches? Data communications over twisted pair wire has been very cost effective and served the our industry very well. Three underlying trends are going to drive the demand for IP connectivity in our World Our insatiable appetite for trend data driven by ‘continuous commissioning’ and ‘equipment, system and building analytics’, New building codes like ASHRAE 189, LEED Accreditation and different Government enforced compliance with new energy performance standards and rating standards Some of you in this room have experienced real bandwidth limitations of traditional RS-485 / EIA-485 communications When there is heavy trending requirements on a project, pushing data can be like pushing the snail or Escargot along the wire. Security – hardly a week goes by without a story of another security breach and there is not a lot of security with open protocols like BACnet Graphical User Interface – with IP wireless - enables us to define our customers experience with Mobile Apps and HTML5 complaint browsers Use of in Buildings Systems Time

The Rise of IP in Building Systems IP Management Controllers Non IP Management Controllers Thousands Shipped Is there any data to back-up this assertion and what we all know to be true? IHS – an organization that specializes in analyzing industry trends divides controllers into Management or Field controllers. And while their data shows the majority of all Field Controllers shipped for the next few years will continue to offer the beloved ‘twisted pair’ EIA-485 connection, you can see IP Management Controllers overtake non-IP controllers. This could just be coincidence - but 2015 marks the release of our new IP controllers – the Partners in this very room are going to help make this happen. You are going to play your part in accelerating this trend. Source: IHS 2014

The Rise of IP in Building Systems Trend towards IP convergence BACnet/IP, Modbus/IP, LON/IP, KNX/IP IP convergence means that all building equipment including systems not shown in this slide will connect via IP. Why? What are the benefits? Design a single IP Building Infra-structure that serves all disciplines/services Bandwidth and easier data exchange Security Mobile/Tablet GUI

The Rise of IP in Building Systems Trend towards IP Convergence means breaking down walls Director of Facilities Dealing with IT departments has traditionally struck fear in to many building Physical Plant Directors/Chief Engineers. Some of them have gone to enormous lengths to circumvent IT – running completely separate IP networks – almost anything to avoiding dealing with those that cannot be named. Our role is to help build the bridge between the customers Physical Plant Department and the IT Department.

Selling the leading IP controller line New stakeholders at the table when we are closing the deal CTO usually reports to the CFO / CEO IP infra-structure is the domain of the CTO IT can veto or bless your proposed solution Your opportunity is to drive the IP solution – knowledge is key! You do not have to be an IT Guru to sell to the CIO (Chief Information Officer) or CTO (Chief Technology Officer), but some familiarity with IT Terminology, understanding their World, their challenges……I have personally found to be most beneficial. The CIO/CTO may not write the purchase order, but they can surely kill the deal for you – they have veto power! Our opportunity here is to drive the IP solution and knowledge can be key!

Selling IP – Terminology TCP/IP vs. UDP Ports LAN/WAN VLAN VPN Ethernet , NIC POE IEEE802.11. (WiFi) IEEE802.15.4 (Zigbee, 6LowPan) Mesh, Peer-to-Peer, Adhoc FIPS HTTP / HTTPS SSL Firewall LDAP DHCP versus static IP Addressing IPv4 and IPv6 Server Virtualization – VMWare Active/Active & Active/Passive Clustering SQL vs. NOSQL HMTL5 XML The World of IT – a ‘layman’s’ understanding of their ‘lingo’ is very desirable. I am very comfortable explaining each of these terms, what each of these means from a practical perspective, in the ‘Queens English’! This does not make me a ‘geek’, but able to converse and relate to IT specialist.

Selling – IP Terminology Data Let’s just take the first one on the list: TCP/IP Transmission Control Protocol / Internet Protocol – it’s really about transportation of data – moving it from one computer to another. A common analogy is that it’s like the Postal Service. If the address is correct, usually – the envelope gets delivered on time and to the right address. Inside the envelope, there maybe one or two sheets of paper. There is no telling whether we have the whole story or what language the story may be written in. CISCO Systems will tell you that there are 2000 plus higher layer protocols that use TCP/IP to get data around from one place to another. We are familiar with just a few of these higher layer protocols: BACnet, Modbus, LON, SNMP and KNX. Your browser uses HTTP (not secure) or HTTPS (secure). The vast majority of the higher layer protocols are proprietary. I am reminded of a specific competitor in our industry whose marketing collateral simply stated TCP/IP is their standard but failed to disclose that their higher layer protocol was completely proprietary. Bottom-line: As we transition to our new IP controllers, we need to educate ours sales teams on IT lingo, what we support, and help our prospective end user customers build the bridge to their respective IT departments. Transport

Benefits of the ECLYPSE IP Solution Capitalizes on IP building infrastructure Lower electrical installation cost* (CAPEX) Embedded web server - no dependency on central server Web access via browser Mobile applications IP offers several wired and wireless connectivity options Easier network setup and diagnostics Easier access for commissioning and service Reduced life cycle costs for the end-user customer (OPEX) Bandwidth galore – necessary for trends and data analytics IP Connectivity for implementation of cloud solutions Security – Utilizes widely accepted IT security models REST API to access data in ECLYPSE IP controllers read & write So how would I summarize the benefits of our new ECLYPSE IP solution? Lower electrical installed cost for the end user customer, because major infra-structure assets can be shared and more fully utilized. There are a lot of variables in the installed cost equation: New construction / retrofit which represents the majority of the market in North America, whether IP wiring is shifted from controls to datacomm, type of wired or wireless IP connectivity. All these factors could mean lower total installed cost for us. We’ll take a look at installed VAV cost in a few slides. Embedded webservers mean we are no longer reliant on a central server, and that we can offer the enduser customer a productive user experience via mobile apps or HTML5 compliant browsers, and make it easier for our technicians to gain system access for setup. Multiple wired and wireless connectivity options which offer innovative ways of approaching customers with legacy competitive systems. Easier network setup and diagnostics are a real possibility with IP. Easier access for commissioning and service thru mobile apps Reduced life cycle costs for the end user customer? Think download / upgrade time Bandwdith galore for trends, data analytics and continuous commissioning IP connectivity necessary for cloud solutions Widely accepted IP security models such as FIPS REST API to access data in ECLYPSE IP controllers – initially to read and write data, but further down the road – there will be other possibilities to create customized solutions necessary for success in specific vertical markets New Construction versus Retrofit: 80/20% is a typical ratio in the U.S.A

Benefits of the ECLYPSE IP Solution Android O/S Secure, robust and open source operating system Supported by Google More than 1 billion users today Worldwide More than twice number of Apple IOS users Rapidly growing community of developers Android O/S is based on the Linux kernel, and has more than 1 billion users Worldwide, more than twice the Apple O/S. Today, Apple still generates more developer revenue than Android – but Android is fast catching very quickly – mainly in the emerging markets. Importantly – the community of developers that support Android is growing very quickly indeed. By way of example, just look at this next slide showing global smartphone marketshare.

Benefits of the ECLYPSE IP Solution Android has 76% market share globally

A Closer Look: Selling ECY-VAV   ECY-VAV Feature Summary BACnet B-BC programmable controller Compact form factor Integral precision air flow sensor VAV GFX program pre-loaded in controller VAV Graphic and configuration available via browser Microprocessor (ARM 600 MHz ) Memory (2GB Flash and 512 MB RAM) Higher Torque Brushless Belimo Actuator (45 lbs/ft) Aluminum pitot tube connections Precision Air Flow Sensor (best in class) EnOcean wireless sensor ready IP wired and wireless communications Secure FIPS Encrypted Communications Embedded Server capability So how does this impact our new ECY-VAV? Designed from the ground up with a compact form factor, best in class precision air flow sensor, high torque Belimo brushless actuator, this VAV controller is also a webserver – meaning that the graphic and configuration page can be served right from the controller thru a wired or wireless IP network. Both the graphic GFX program and the graphic reside in the controller! Advantage ECY-VAV

A Closer look: ECY-VAV IP Wired or wireless IEEE802.11 100 Mbps BACnet B-BC Schedules, Alarms & Trends Encrypted So how does this impact our new ECY-VAV? Designed from the ground up with a beautifully compact form factor, a best in class precision air flow sensor, high torque Belimo brushless actuator, this VAV can be connected to an IP network wirelessly using WiFi or IEEE802.11. Let’s show the three wired / wireless solutions that you will sell the CE or customer on a prospective project.

A Closer look: ECY-VAV(IP-Daisy Chain) Controllers must be powered Each controller is an Ethernet switch 300ft between each ECY-VAV controller Installation cost very similar to MS/TP Superior performance to MS/TP Comparable to MS/TP – but with out the shackles of MS/TP, LON or twisted pair communications. 24V~ac

A Closer look: ECY-VAV (WiFi) Wireless mesh communications 100 ft between ECY-VAV controllers Controller must be powered (24 V~ac)

A Closer look: ECY-VAV (Future POE) Power Over Ethernet + communications 300 Ft home runs back to CISCO switch ECY-VAV consumes 15W Additional cost of ‘POE’ home runs should be part of IT infrastructure and savings in life cycle costs amortized ECY-VAV will be able to power

A Closer look: ECY-VAV(WiFi HotSpot) IP-Daisy Chain Shown with Guest WiFi Hotspot

Selling ECY-VAV: Installed Cost

Selling ECY-VAV: New or Retrofit ? New Construction Take advantage of structured cabling approach Need to drive specification with CE’s and building owners Sell advantages of IP-Daisy Chain / WiFi / POE Cognizant of trends towards diagnostics / continuous commissioning it’s all about data and energy Retrofit Construction WiFi mesh offers real advantages in some retrofit scenarios Power – is already provided Using existing communication cabling is risky Enables a ‘trojan horse’ approach to take over legacy system Minimizes disruption to existing systems

A Closer Look: ECY-S1000

A Closer Look: Selling ECY-S1000 BACnet IP (BB-C) controller with expandable I/O modules High I/O point density 320 points and up to 20 expanders 25ms total scan time for all inputs combined Supports MyDC Control and future mobile apps Optional webserver for embedded ECLYPSE ENVYSION graphics no dependency on central server Powerful microprocessor 50% more powerful than a EC-BOS7 Over 8 times more FLASH memory an EC-BOS7 Over 20 times more powerful than ECB-600 BACnet schedules, alarms, trends REST API – easy remote access to data

ECLYPSE IP Controller Applications Central Plant Room Chillers Primary/Secondary Pumps Cooling Towers Valves / VFD’s Data Centers Plant & monitoring Small Building Controller Large Air Handling Units More complex built-up AHU’s Energy recovery coils - wheels Multiple heating/cooling coils VFDs, Fan walls Small Building Solution More and more specifications now require IP connectivity. Practical applications for our new ECLYPSE ECY-S1000 controller are mechanical rooms with chillers, pumps, valves, cooling towers, VFD’s, boilers, heat exchangers and other miscellaneous mechanical equipment and/or large built-up or custom Air Handling Units. We are looking at competitively pricing this controller based on it’s expansion capabilities, recognizing where you are today competitively with our current solutions, and where you need to be to access specific vertical markets

ECLYPSE IP Architecture: Standalone ECY-S1000 BACnet/IP Controller Shown with ECLYPSE ENVYSION GUI IP Infra-Structure First thing I am going to show is a what I may term a pure IP architecture or standalone configuration. There are no MS/TP devices in this architecture. with the Browser Mobile App pure IP Application – NO NIAGARA AX

ECLYPSE IP Architecture: Typical SUPERVISOR IP Infra-Structure ECLYPSE AX SERVER(SOFT JACE) WITH ENVYSION GRAPHICS BACnet MS/TP BACnet MS/TP

ECLYPSE IP Architecture: Large SUPERVISOR ECLYPSE AX SERVER ECLYPSE AX SERVER ECLYPSE AX SERVER BACnet MS/TP BACnet MS/TP BACnet MS/TP IP Infra-Structure Riser IP Infra-Structure Riser IP Infra-Structure Riser BACnet MS/TP BACnet MS/TP BACnet MS/TP Building A Building B Building C

Selling the leading IP Controller Brand Live Demo

ECLYPSE ENVYSION Chiller Plant Graphic

ECLYPSE ENVYSION on a Samsung S5

ECLYPSE ENVYSION on a Samsung S5

How does this change my business? ECLYPSE leading IP technology offers you: An opportunity to take your business to the next level An opportunity to influence CE’s/owners & specifications Simplifies system architecture using ECLYPSE AX Server ECLYPSE AX SERVER is a soft JACE Changes your approach to how you estimate projects So what’s your next step? Develop a strategy IP strategy Sales team needs to be educated in basic IP terminology Assess capital & life cycle costs of wireless/wired solutions Network certification(s) for your lead technicians? Use our new Div 23000 and 25000 specifications Value-add services for recurring business revenue REST API: Web-services

Questions ECLYPSE IP SOLUTIONS . THIS IS JUST THE BEGINNING

References (1) Android Market Trends IP Trends in BAS http://www.businessinsider.com/android-v-apple-ios-market-share-revenue-income-2014-6 http://www.businessinsider.com/iphone-v-android-market-share-2014-5#ixzz35q7wsn2Q IP Trends in BAS http://todaysfacilitymanager.com/2014/01/2013-trends-recap/ http://todaysfacilitymanager.com/2013/07/web-based-fm-trends-the-internet-of-things/ http://www.automatedbuildings.com/news/mar09/articles/cctrls/090220020828cctrls.htm http://www.automatedbuildings.com/news/jan14/articles/lynxspring/131227013909lynxspring.html Role of CIO in Business http://www.cioinsight.com/it-news-trends/slideshows/it-emerges-as-key-business-player.html/ IT Terminology http://netforbeginners.about.com/od/internetlanguage/tp/the-top-internet-terms-for-beginners.htm http://www.rackspace.com/information/hosting101/terminology/ Wired versus wireless costs: http://tech.kcrepsource.com/wired-compared-to-wireless-costs-bas-installations/

References (2) Security: FIPS FIPS 140 Approved Vendor List http://www.rtcmagazine.com/articles/view/100318 FIPS 140 Approved Vendor List http://csrc.nist.gov/groups/STM/cmvp/documents/140-1/1401vend.htm CISCO Internet of Things http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/VNI_Hyperconnectivity_WP.html PC MAG IP Terminology http://www.pcmag.com/encyclopedia/index/ BAS Design over IP http://www.cisco.com/web/strategy/docs/trec/jControls_DIG.pdf EnOcean fully interoperable with TCP/IP http://www.energyharvestingjournal.com/articles/enocean-now-fully-interoperable-with-tcp-ip-00003343.asp?sessionid=1 Building Stock in the U.S. http://www.eia.gov/consumption/commercial/reports/2012/preliminary/index.cfm