{"id":547287,"date":"2022-06-15T03:59:19","date_gmt":"2022-06-15T03:59:19","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/meet-pylon-the-data-driven-company-making-infrastructure-more-efficient\/"},"modified":"2022-06-15T03:59:19","modified_gmt":"2022-06-15T03:59:19","slug":"meet-pylon-the-data-driven-company-making-infrastructure-more-efficient","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/meet-pylon-the-data-driven-company-making-infrastructure-more-efficient\/","title":{"rendered":"Meet Pylon: The data-driven company making infrastructure more efficient"},"content":{"rendered":"

<\/a> Using data to improve efficiency in our traditional infrastructure: Enterprise <\/strong>sits <\/strong>down with Pylon\u2019s Ahmed Ashour. <\/strong>Having recently raised<\/a> USD 19 mn in a seed funding round, and already hit profitability following its 2017 launch, infrastructure management platform Pylon<\/a> is on a roll. We sat down with Pylon\u2019s co-founder and CEO Ahmed Ashour<\/a> for a deep-dive into how the company\u2019s data-driven software is helping to make traditional infrastructure sectors \u2014 namely, electricity and water distribution \u2014 more efficient.<\/p>\n

The main challenge facing water and electricity providers: Substantial revenue losses from structural inefficiencies.<\/strong> This lost revenue could amount to close to USD 2 bn per year in Egypt alone, and some USD 400 bn in emerging markets, says Ashour. It comes primarily from inefficient revenue collection, electricity or water theft from tampering, and leakages or technical losses happening across the networks, he adds. Upgrading infrastructure to make it more efficient is usually a cost-intensive undertaking for utility providers, Ashour says.<\/p>\n

This is where Pylon comes in:<\/strong> Pylon\u2019s software collects and analyzes vast amounts of data, identifying systemic inefficiencies that providers can take immediate steps to address, says Ashour. The AI embedded in its tech can make forecasts and recommendations for more efficient, lower-emissions usage. \u201cIn essence, we develop the technological layer for the infrastructure sector,\u201d Ashour says.<\/p>\n

So how does it work?<\/strong> Pylon supplies software, communication technology and smart meters to its subscribers, says Ashour. The software \u2014 which it connects to all the subscriber\u2019s different assets \u2014 has different functions, but is broadly focused on data collection, data crunching or analysis, and feedback mechanisms, some of which are automated, he adds.<\/p>\n

For electricity, it\u2019s data collection, <\/strong>Jim<\/strong>, but not as we know it: <\/strong>Electricity utilities are used to getting a single data point a month, by sending someone to read the electricity meter, Ashour tells Enterprise. \u201cBut our smart meters take a reading every 15 minutes, and each one of these measures around 32 different parameters,\u201d including consumption, the volts and amperes of the electricity, the load profile (the electricity usage going up and down at different intervals), and the quality of the electricity provided. \u201cThe more data we can collect, the greater our insights and understanding, and we can make better forecasts and decisions.\u201d<\/p>\n

When it comes to smart technology, not as much can be measured and forecast with water, because water meters are battery operated<\/strong>, says Ashour. \u201cOur water forecasting is mainly about usage. We can look at the direction and speed of the flow, but at the moment we can\u2019t conduct as thorough an analysis as in the electricity sector.\u201d<\/p>\n

The data is then communicated to a centralized data center<\/strong> through power line carriers, broadband or even radio frequencies, says Ashour. Once it arrives in the data center \u2014 which could be in a physical space attached to the customer\u2019s location, or in the cloud \u2014 the system starts the data crunching process.<\/p>\n

Data analysis informs and directs the different functions of the platform: <\/strong>Pylon\u2019s machine learning software can cross reference newly-collected data with data already in its system to detect suspicious patterns of activity, indicating electricity theft, for example, Ashour says. When the system flags a suspicious pattern, it\u2019s automatically assigned to a human inspector, who investigates the situation. The software can also show companies where in the network their biggest losses from leakages or theft are occurring. It can help pinpoint the root cause of a problem, and where infrastructure needs to be fixed or maintained, he adds.<\/p>\n

Along with system optimization, in response to demand: <\/strong>Pylon\u2019s system can put a limit on individual users\u2019 electricity consumption during peak demand hours. Electricity distribution companies often struggle with supply when demand is at its peak and are forced to either cut the electricity supply in different areas, or to install more generation capacity \u2014 which may then only be used for a few hours a day, a few months a year. Pylon can limit consumption to 40 or 50 amperes during peak hours, so individuals still have electricity access but it\u2019s capped, he adds.<\/p>\n

And lower-emissions electricity supply: <\/strong>Pylon can maximize generation from renewables, by using data analysis to predict solar or wind power generation during a given time period. \u201cWe can then link electricity providers to sources of conventional energy, like gas turbines, to supplement what\u2019s needed,\u201d says Ashour. The company tries to ensure gas plants aren\u2019t used during peak demand hours, which leads to higher CO2 emissions, he adds.<\/p>\n

How the money comes in: <\/strong>\u201cWe consolidated everything into the technology,\u201d says Ashour. \u201cThere\u2019s a new idea that software is eating infrastructure<\/a>, which is what we adopted. It basically means you provide the whole service in the software layer. We minimized the need for hardware, and built a lean solution from scratch. So we focus on making our product very efficient, solving all the challenges, and constantly enhancing our software. Then we take this software, and sell it to numerous customers through our subscription model.\u201d<\/p>\n

Pylon\u2019s service model is subscription-based, with utility providers usually paying over a 10-year period:<\/strong> \u201cThere\u2019s no upfront payment or substantial one-time investment for customers,\u201d says Ashour. Paying in installments over a long period makes it a more cost-effective service for the utilities providers, he adds.<\/p>\n

Ashour and his co-founder <\/strong>Omar Radi<\/a><\/strong> think of the company as the Android of the smart grid<\/strong> \u2014 meaning the company integrates its own software with hardware provided by partners from all over the world. It works with around 30 different hardware providers from locations including Egypt, Europe, China, and the US. Pylon also partners with Amazon Web Services for its data storage, and has designed its own cloud storage offering, says Ashour.<\/p>\n

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