As the world goes through a vast energy transition, utilities stand in the center of attention, as governments, environmental organizations, and their customers continue to add pressure to meet ever-changing expectations. Customers expect their utilities to deliver an outstanding customer experience (CX) while resting assured that their information is being handled with the highest security standards. On top of these expectations, organizations are experiencing digital transformations that require them to think outside the box and plan their operation in the most efficient way. All these challenges represent a burden for service providers’ IT infrastructure and often imply increasing processing and storage capacity to keep up with the demand. This strategy is not recommended due to the high costs involved in developing and maintaining a robust, scalable, and secure IT infrastructure.
As the world goes through a vast energy transition, utilities stand in the center of attention, as governments, environmental organizations, and their customers continue to add pressure to meet ever-changing expectations. Customers expect their utilities to deliver an outstanding customer experience (CX) while resting assured that their information is being handled with the highest security standards. On top of these expectations, organizations are experiencing digital transformations that require them to think outside the box and plan their operation in the most efficient way. All these challenges represent a burden for service providers’ IT infrastructure and often imply increasing processing and storage capacity to keep up with the demand. This strategy is not recommended due to the high costs involved in developing and maintaining a robust, scalable, and secure IT infrastructure.
Cloud computing under a SaaS model offers applications that can be accessed via a browser, which relieves organizations from duties such as software maintenance, infrastructure management, network security, and data availability. PaaS models provide access to a cloud-based environment in which users can build and deliver applications without the need of installing and maintaining complex desktop IDEs (Integrated Development Environments), which are usually very expensive. Finally, IaaS models offer computing capabilities (storage network, processing capacity, etc.) for a certain amount of time, when companies do not need to take care of the infrastructure.
With any of the options mentioned above, utilities can start moving towards digitalization, lowering the cost of ownership, and creating additional business cases in which customer experience (CX) levels are elevated. To keep up with their customers’ demands, service providers have added customer-facing features to their legacy systems, increasing operational complexity and harming CX.
At the same time, organizations can easily transition to renewable energy, which has been promoted by many governments to achieve decarbonization in the energy sector. In fact, in the US, 78 % of investor-owned utilities have set targets in CO2 emission reductions and 40 % have net-zero or carbon-free electricity goals [2]. 92 % of power and utilities executives surveyed by Deloitte reported that their companies already had a plan or were developing a strategy to reduce reliance on fossil fuels [3]. Likewise, commercial and industrial corporations have started traveling the same path, which is putting more pressure on service providers to offer products and services that follow these goals and strategies.
Nevertheless, service providers have been buying new solutions with narrow scopes that cover specific functionalities to face their challenges instead of optimizing their IT architecture. Therefore, many issues, including burdensome integration complexities, are hindering utilities’ ability to grow continuously at the pace of the market.
How does cloud computing help utilities overcome these challenges?
Cloud technologies support utilities’ through today’s challenges by serving as a bridge between them and the technologies that are energy transition enablers, such as Internet of Things (IoT), Artificial Intelligence (AI), and Augmented Reality (AR). This link brings several opportunities and business cases that not only create competitive advantages in the market, but also empower companies to transform themselves into a more reliable and robust business. In other words, cloud computing is taking utilities to the next-gen of energy service delivery.
Some of the business scenarios and opportunities that have emerged during the energy transition, and have enabled the digitalization of service providers are:
Solutions like these are easily delivered on the cloud, preventing utilities from incurring in the costs needed to support the processing capacity and infrastructure requirements of each cloud delivery model. Cloud technologies can transfer data at extraordinary speeds, no matter if it comes from field measurement, IoT devices, or other platforms, allowing service providers to achieve scalability and higher efficiency in their operation. Furthermore, cloud computing empowers companies with new possibilities to offer products and services like connected electric vehicles, customized energy programs, among others.
[1] Accenture, “Best of 2020. A collection of insights from Accenture Utility industry leaders.,” Accenture, 2020.
[2] Deloitte, “Deloitte Insigh,” 2020. [Online]. Available: https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/utility-decarbonization-strategies.html.
[3] Deloitte, “Deloitte,” [Online]. Available: https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/navigating-energy-transition-disruption-growth.html.
[4] Accenture, “What’s driving utilities to cloud?,” Accenture, 2018.
AI, with its transformative potential, has captivated the utilities sector, positioning itself as a key…
Open Intelligence, renowned for its technological and software solutions in the utility industry, is pleased…
Utilities are at a technological crossroads, often burdened by outdated systems and technologies that restrain…
Gartner, a leader in IT research and consulting, annually provides a comprehensive analysis of technology…
Open Intelligence's continuous update strategy offers its clients an estimated 75% savings in investment over…
Open Intelligence (Open), a leading software provider with over 35 years of experience, is proud…
This website uses cookies.