Open Systems for Building Control 2003 Echelon

Agenda l l The Value of Open Systems l Open Systems Defined l LONWORKS® & BACnet – A Perspective l Specifying Open Systems l 2 Introduction Summary

Introduction Device Networks © 2003 Echelon

Imagine a world where everything is smart 4

where everything is connected 5

All Kinds of Everyday Devices l l l 6 White goods Heaters and air conditioners Lights Pumps and motors Electricity meters Security systems Train brakes Gates and garage doors Conveyor belts Medical alarms Window shades Elevators

That Interoperate to Lower Cost, Add Value, Increase Comfort l l Time of day pricing changes defrost cycle l Motion alarm triggers lamp and generates remote alarm message l Away mode of thermostat changes hot water temperature to save energy l 7 Completion of drying cycle flashes lamp inside home Activation of TV lowers room lights

The Value of Open Systems © 2003 Echelon

Market Drivers l Owners are dissatisfied with the costs of proprietary systems – Sole-source maintenance contracts – Other operational expenses associated with energy consumption and moves/adds/changes dictate a need to introduce more efficient and cost-effective systems 9

Market Drivers l l Homeland Security post 9/11 demands Vigilance – Want to know “everything” going on inside “every” building – Insecurity drives desire for integrated Enterprise systems l Rapidly changing technology enables disruptive changes in the building automation landscape – The Internet, Web services, ubiquitous communication technologies create expectation of real time information – “everywhere”, “all the time” l 10 Economic climate dictates focus on productivity – Efficiency demands better value, faster innovation, smarter investment Demand for Open Systems

Industry Response l Focus placed on developing standards that define open systems – The leading standards are associated with BACnet and LONWORKS Systems 11

Industry Response l All major players deliver products or systems that conform to one or more established open system standard – Many continue to invest and update proprietary product lines l l Significant advances made in security equipment and integrated systems l 12 Traditional players provide integrated systems (open and proprietary) and webbased access Tech-savvy non-traditional players are entering the market

Open Systems Promise l Owners are attracted to the “Promise” of Open Systems – Better Value for the Entire Building Life Cycle – More and better choices – Faster Innovation 13

Open Systems Defined l Open building systems are created using the products and systems from multiple vendors that, as a system, offer greater flexibility, easier management, higher levels of scalability, and lower life cycle costs 15

Open Systems A Control Systems Evolution Master/slave Distributed systems Stand-alone controllers Networks Closed, single-vendor Open, multi- Centralized Home-run Wired 16 Tiered Islands of Proprietary Sub-systems Flat, open, multi-vender

Open Systems Architecture A Better Building Control Model Building Management Applications Open 17 G/W/E meters Elevators Security Components Lighting Components HVAC Components PC’s/TV’s/VCR’s Network Operating System

Open Systems Create Opportunity by … l l Allowing a comprehensive solution from Device to Enterprise Integration l Creating a common tool platform across multiple manufacturers products l Simplifying Adds/Moves/Changes as well as Monitoring, Control and Visualization l 19 Providing a standard system architecture Open Systems are – The basis for Innovation, Differentiation, and Competition – An opportunity for specifiers, integrators and end-users

LONWORKS & BACnet A Comparison © 2003 Echelon

Comparing BACnet and LONWORKS Key areas to examine l l System and Device Characteristics l Conformance Testing and Certification l Product Selection l Network Management l Diagnostic Tools l 21 System Architecture Market Presence

Historical Comparison LONWORKS BACnet l 1988 – Released by the Echelon Corporation l l 1994 – Lon. Mark® Organization formed l 1995 – 1 st certified product l 1997 – LNS 1. 0 released l 1998 – 100 th certified product l 1999 – ANSI/EIA standard l l 1987 – ASHRAE committee formed 1995 – BACnet 1995 Released l 2001 – BACnet 2001 Released l 1999 – 200 th certified product 2002 – BTL begins product testing l 2001 – 300 th certified product l 2002 – 1 st tested product l 2002 – Address space increased through ANSI l 2002 - XML Work Group established l 2002 – 400 th device certified l 2003 – Becomes ISO Standard 16484 -5 l 22 500 th 2003 – device certified (estimated)

System Architecture l l 23 Description Impact on Openness – LONWORKS provides for a flat architecture – BACnet provides a tiered architecture – LONWORKS flat peer-to-peer networks enable data exchange directly between devices without the need for gateways or custom software – BACnet tiered networks are designed around gateways or custom software to link sub-systems and components/subsystems from different vendors – Linking sub-systems creates “islands of automation” – Flat architectures require more training, but have lower long-term costs – Integration of different subsystems requires more engineering – Upgrades cost more due to need for gateways and/or custom software

BACnet’s Tiered Architecture Source: http: //www. trane. com/commercial/equipment/bacnet 01. asp#specify 24

LONWORKS Flat Architecture Operator Interface IP/Ethernet LAN IP Router Device Network 25

System and Device Characteristics l Description – LONWORKS (LONMARK Association) enables different manufacturers to produce products that have identical functional characteristics (both data interface and actions taken on shared data) – BACnet allows manufacturers choose unique implementation of specific functions l Impact on Openness – Specifiers, integrators and owners must understand that there are degrees to openness l l 27 Low Range: Can’t substitute devices from other vendors – Vendor Lock High Range: Substitute and extend with any vendor’s products – Addition of new equipment requires involvement from original integrator and manufacturer to understand how specific low level functions were actually implemented in each controller

Conformance Testing and Certification l l 29 Description – Certified LONMARK devices are assured to provide specified functions – Tested BACnet devices are identified to have one or more non-specific characteristics Impact on Openness – Design and integration of BACnet and LONWORKS devices can be expensive – Compliance testing makes life easier for manufacturers but harder for owners – Certification makes life harder for manufacturers but better for end-users

Product Selection l l 34 Description – LONMARK Association has certified 470 devices (as of Aug. 2003) www. lonmark. org – BACnet has tested 32 devices (as of Aug. 2003) www. btl. org Impact on Openness – There are lots of choices but they reflect a topdown. vs. bottom up approach – Limited competition results in higher prices; few sources for product; few sources for design and integration – Limited product selection may mean that the type of function/product desired is not available

Network Management and Diagnostic Tools l Description – LONWORKS Network Management (design, commission, installation) and Diagnostic Tools available from manufacturers and independent vendors that leverage a standard database – BACnet Network Management and Diagnostic Tools only available from manufacturers l Impact on Openness – Multiple “proprietary” tools required to integrate and diagnose multi-vendor l 35 Opportunity to remain “locked in” for upgrades – Diagnoses and troubleshooting network issues require “proprietary” tools provided by the same manufacturer that supplied the system/devices – no vendor independence

Market Presence LONWORKS 1 BACnet 2 ¹ Data from Echelon website and Lon. Mark Interoperability Association as of mid-2003 3 38 As of July 2002 ² Data from BACnet Manufacturers Association 2000 survey and BTL website (Aug. 2003)

Specifying Open Understand & Help Define a Customer’s Needs © 2003 Echelon

Specifying Open Understand & Help Define a Customer’s Needs l l Is it important to be able to run the system from an application, like energy management or a performance contract? l 43 Do you need a whole-building approach to systems integration? What about the future? XML? SOAP? IP?

Specifying Open Understand & Help Define a Customer’s Needs l l How important is it to be able to replace a device with one from another manufacturer at a later date? l 44 Is centralized control & sequencing required? I want to master my own destiny. Can I get all the necessary documentation, configuration information, configuration tools, programs, drivers, and other software or licensing from my suppliers?

Specifying Open Understand & Help Define a Customer’s Needs l l Do you want to be able to walk away? l 45 How many times have you been locked in? Do I need multiple front ends? Can I switch?

LONWORKS Open System Specifications l Reference material available: – Echelon OSA Website : http: //osa. echelon. com l Open System Specification Framework and Design Guide – http: //osa. echelon. com/Program/PDFs/guidelines/Open Spec. Framework. pdf 47

LONWORKS Open System Specifications l Reference material available: – Lon. Mark Website: http: //www. lonmark. org/products/guides. htm l 48 Lon. Mark Building Automation System Master Specification

LONWORKS Open System Specifications l 49 Reference material available: – Army Corps of Engineers

BACnet Open System Specifications l 50 Reference material available: – Allerton Website: http: //www. alerton. com/Products/BACtalk/gsbacnet. asp

BACnet Open System Specifications l 51 Reference material available: – Trane Website: http: //www. trane. com/commercial/equipment/b acnet 01. asp#specify

Summary l l There is a range to Openness – We have a responsibility to educate the end-users and ourselves – Need to commit time and become the expert l 52 Market is going open Open Systems are an OPPORTUNITY to expand your business