American billionaire philanthropist Warren Buffett's Berkshire Hathaway Energy has jointly invested US$22.5 million into an Israeli company that offers energy-saving software to the mobile network industry.
Mr Buffett's wholly owned subsidiary IES Holding and GE Ventures have backed eVolution Networks' Smart Energy Solution, a software-based solution that analyzes the mobile network’s traffic needs and adjusts the use of the network’s resources based on real-time demand from subscribers.
The company said the adaptive approach to managing the network’s resources has been deployed by operators such as Telefonica Group and claims to reduce up to 35% of the annual energy consumption of mobile operators.
Global expansion plans
With the funding, eVolution Networks plans to expand its worldwide presence and promote its solutions to new industries, such as data center energy management.
Bill Fehrman, president of Berkshire Hathaway Energy subsidiary IES Holding, said: “eVolution Networks is poised for tremendous growth as more customers and business partners realize the benefits provided by the technology.
“This funding will be used to capitalize on this potential, boost the company’s growth worldwide and establish eVolution Networks products and technology as an industry standard.”
Commenting on GE Ventures' motivation to invest, Jonathan Pulitzer, senior director at GE Ventures, said: “Given that energy costs are the largest portion of operating expenses for telecom operators, a 35% reduction in energy usage with Smart Energy Solution will have a significant impact on profitability.
“GE Ventures is investing in eVolution Networks because of this potential for savings and the positive impact on global energy consumption.”
eVolution Networks was founded in 2011 by CEO Roy Morad and CTO Idan Cohen.
The company, which had previously raised US$4 million from Breslau Capital, has 50 employees, and has its offices in Ramat Gan.
Worldwide figures show the telecommunications industry is responsible for 3% of the global energy consumption, which translates to an estimated US$20 billion spent yearly by mobile network operators.