Silver Spring Networks

Silver Spring Networks functioned as a foundational provider of networking platforms and solutions for the Industrial Internet of Things (IoT), primarily serving the smart grid and smart city sectors. The company was founded in July 2002 as Real Time Techomm in Wisconsin by Eric Dresselhuys and Keith Burge, who were focused on upgrading the electrical grid. After an initial angel investment, the company relocated to California in 2003, secured $8 million from Foundation Capital, and was joined by Raj Vaswani. A significant milestone was its initial public offering on July 7, 2011, to raise $150 million. The company's journey culminated in its acquisition by Itron for approximately $830 million, a deal announced in September 2017 and completed in January 2018, after which it was integrated as a new business segment called Itron Networked Solutions.

The company's business model centered on providing the communications layer for critical infrastructure, enabling a two-way flow of information between utilities and their customers. Revenue was generated from two main streams: product sales and services. Product revenue included hardware like communication modules and network bridges, which were manufactured by third parties, as well as associated software licenses. The services segment included professional services for network deployment and a recurring revenue stream from Managed Services and Software-as-a-Service (SaaS) models, where Silver Spring would operate the network on behalf of the utility. Its target clients were large utility companies and municipalities, with major customers including Pacific Gas & Electric, Florida Power & Light, ComEd, and international utilities.

Silver Spring's core offering was an IPv6-based, wireless mesh networking platform that connects millions of devices. This platform, known as Gen5, was designed to be secure, standards-based, and high-performance, creating a unified network for multiple applications. It allowed utilities to implement advanced metering infrastructure (AMI), demand response programs, and distribution automation. A key feature was its ability to turn grid endpoints into a distributed intelligence platform, called the SilverLink Sensor Network, allowing devices to process and share data locally. For cities, the technology powered smart street lighting and other urban services. The platform's software, such as CustomerIQ, provided analytics and engagement tools for end customers, helping them understand energy usage. A major differentiator was the company's focus on being a pure networking provider, embedding its communication technology into hardware made by various meter manufacturers.

Keywords: smart grid, IoT platform, utility networks, advanced metering infrastructure, smart cities, mesh networking, demand response, energy efficiency, distribution automation, Itron