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Cloud power: Utilities industry trends

Learn how advances in cloud computing are impacting these emerging utilities industry trends.

Overview

Digital Utility: Transforming for value and growth
It’s a matter of time before the utility industry completely transforms. Moving forward, the boundaries of traditional service silos will continue to blur, and the value chain will fundamentally change as new business models and integrated services emerge.

Opportunities

What are key components of the new future?

Challenges

The top 3 challenges utilities must overcome:

Why Cloud

What are the drivers pushing utilities toward cloud adoption?

Cloud Factors

Framing the cloud discussion: Factors to consider

Cloud Factors Does the utility operate in a regulated or deregulated environment?
Cloud Factors How large is a utility’s service territory?
Cloud Factors
What are the utility’s current cloud uses?
Cloud Factors How are investments determined for IT and OT performances? Are the environments converging?

Consider:
Security is diminishing as the #1 concern around cloud adoption across all industries.

 

What are current cloud use and transformation opportunities across utility territories?

 

The real potential of cloud

New business models are centered on monetizing new products and services, and engaging with customers in new ways. These models will be driven by:

  • An environment in which on-premise hardware is not an option

  • Customer demand for new services and experiences

  • The Internet of Things

  • The need for new sources of revenue

And smart grid cloud services will grow fast.

Consider:
From 2012 to 2020, the use of cloud services will grow…

The Americas

The Americas

North America
from $267 million to $1.17 billion1

Central & South America
from 428 million to $364 million2

Asia Pacific

Asia Pacific

$140 million to $1.29 billion44

Western Europe

Western Europe

$218 million to $849 million3

 

  1. Zpryme report, Cloud Solutions for a Smarter Grid, February 2013.
  2. Ibid.
  3. IDC European Vertical Market Survey, 2014.
  4. Zpryme report, Cloud Solutions for a Smarter Grid, February 2013.
  5. IDC© Worldwide Cloud Black Book, 2014, Accenture Insights.
China

And in China

from 2013 to 2018, cloud services will grow from $453 million to $1.5 billion4

Next Steps

How Utilities Can Prepare for a Cloud Future

  1. Investigate best practices.

  2. Conduct scenario-based analysis of trends and customer demands.

  3. Think about the cloud journey and what the organization might look like.

  4. (In the United States) proactively approach regulators to examine options.

  1. Include cloud options in the RFP process.

  2. Make digital a core component of business strategy.

  3. Consider talent challenges.

  4. Prepare to scale fast.