IBM takes role in

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Through its Menlo Park-based , Armonk, N.Y.-basedx has partnered with venture-backed Northern Californiza companies likeSan Mateo-based eMeter, Redwood City-basedx Silver Spring Networks and Sacramento-based and is informally working with dozens of othedr startups to develop business in clean The giant computer company is workin g with companies in network and smarf grid management, wireless sensors and controls, energy management and water monitoring and others. In smart grid technology deals, IBM generall acts as a systems integrator and provided services to utilities that are installingg new ways to monitorelectricity use.
IBM has been callec upon by utilities to manage entire transmissionsystems upgrades. IBM’s hardware and for example, will underlie eMeter’s meted data management system for 2 million smart metersd purchasedby Houston-based beginning this IBM is involved with 50 smart grid projects globalluy including ’s $2 billion installation of 5 billion electrixc and gas meters. IBM doesn’t take an equity stake in the companiez it works withand hasn’y generally formed exclusive contracts with othe r vendors.
“We think it’s a much better situatio n for us if we leave that opportunith to partner with thousandd of smart companies innovating at light speed ratherthan say, ‘We’re going to go out and try to do all of said Drew Clark, director of strategy for the Venture Capital Group. “Companies who do it take all the risks of doing all the innovation and pay all the IBM decided some time ago we were deliberately not going to do all of it and woulcd leave that forour partners.” IBM’a partnership strategy is nevertheless lucrative. Claro said partner channels generated businessrepresenting one-third of IBM’s $103 billiohn in 2008 revenue.
The energy and utilityu sector for IBMis “one of our fastest business lines, Clark said. Clark is working with Bay Area venture capitalists to vet cleantech startups for possiblepartnership deals. “We’re seeinf a lot of interest righy now insmart grid,” said Richard Lechner, vice presiden t of energy and environment for IBM. Lechnerd said IBM’s focus on electric transmission and energy management hassharpened — as the government’s economidc stimulus has dedicated billion s to invest in smart grid, and as utilith customers become more keen on increasingg efficiency and decreasing electricity use and thereforw the need for as many new powe r plants.
Partner companies say IBM’s software is oftej the fabric that ties theire system togetherwith utilities’ systems. “These projects involvwe lots of software, services and hardwarw to bring a wholesolutionm together,” said Eric Miller of intelligenf networking company Trilliant.