With the growth of renewable energy connecting to the grid, there is a demand for distributed and emerging energy storage technologies to be developed. Moreover, the fast demand of Cloud, Big Data, and Intelligent City industries demand that highly energy efficient Internet Data Center (IDC) to be flexible and have on-demand deployment for a sustainable profit business case. In the effort to make the energy storage management system independent of multiple battery technologies adopted, a new Software Defined Energy (SDE) storage technology is developed and applies the IDC operation. The SDE coupled with the IT equipment not only enables a new generation of highly reliable power system in IDC, but also provides the highly efficient IT power consumption solution. In this paper, a 3-layer topology architecture of the SDE solution is proposed, which consists of Energy Router, Micro dc-grid, and Energy Management Policy Server in the cloud based environment. The analytic reliability model of SDE is conducted and presented. The innovative approach is also applicable in the behind the meter, distributed energy storage and management systems for Industry and Community.