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The answer, according to Viridity, is to understand at a detailed level how much power each IT component—an individual server or a given software application—consumes in a company. And then connect that power consumption to the company’s specific business operations. Instead of just being able to track the amount of power a given rack of servers uses, for example, Viridity’s software can tell you how much power a given app is costing you, so you can balance that against the business impact of that app. That approach seems to differentiate the startup from other players in data center monitoring and management, such as Schneider Electric, Eaton, Liebert, Modius, and TrendPoint Systems.

“Most customers are using 30 to 50 percent more power than they need to,” says Rowan. Saving that money on their power bill means they can use it for other important things like operating expenses—or even being able to retain an extra employee, for example.

So far, Viridity’s customers are mostly small to medium-size companies, ranging from hedge funds and financial services firms to hospitals, multimedia broadcasting companies, and larger organizations like the Museum of Modern Art in New York. Meanwhile, Viridity makes its money through a subscription model. “It’s about who can deploy the product and have huge gains, and not have to integrate with 74 other things,” Rowan says.

Although its path seems promising, Viridity faces the same challenge that most IT management startups face. Namely, proving that it saves customers enough money to justify learning (and paying for) new software. A more specific challenge to energy efficiency is that in most companies, the power budget is controlled by a facilities group, while the IT department may not care much about power until they run out of it, Rowan says. Viridity is trying to bring those two groups together that speak different languages, he says.

My take is that as long as Viridity’s software is easy to use, works well, and is able to cut through the noise of IT management, the startup should do well and do good.
