You may not think of utilities as being technology leaders, but there are certain factors that are causing utility companies to adopt cloud solutions. Utility companies are increasingly identifying ways that cloud technology helps them achieve disruptive efficiencies or cost reduction, as well as regain some lost profitability. Here are several of the factors driving utilities’ migration to the cloud:
The Internet of Things (IoT): Utility companies are embracing the use of sensor-equipped devices that help them uncover new efficiencies, reduce the number of technicians in the field, and process data more effectively. The amount of data moving between devices and processing centers requires a cloud solution. In addition, cloud security and network solutions are often necessary to manage the access points and prevent congestion in the network.
Energy savings: One of the reasons utility companies must invest in disruptive technology that provides cost savings is to make up for profits lost in generation. Developments such as LED lights, energy efficient appliances, and technology that optimizes home energy use have significantly reduced energy usage. While it’s good news for energy use-reduction efforts, generation is the primary way utility companies make money.
Competition: Retailers like Wal-Mart and Amazon are also eating into the profits of utilities companies by offering energy-producing products, like solar panels, completely off the grid of the regular utilities industry. As a result, utilities companies can no longer get away with simply “keeping the lights on” to keep their customers. They have to be able to demonstrate value. By offering cloud technology, they have the ability to improve the user experience and showcase their understanding of users’ needs.
Capital expenditures: Utilities companies have generally been able to pass along the cost of a capital expenditure, such as the building of a new plant, to consumers. When they invest in cloud technology, they are not only able to pass on the cost of that investment, but also offset it by the efficiencies that the consumer experiences as a reduction in their bill.
There are other areas where utilities are making use of cloud technologies. For instance, the advance of electric vehicles not only provides revenue in the way of charging stations, but the charging stations also present an opportunity for utilizing blockchain technology for charging expensing.
Whether your needs are related to connectivity, disaster recovery, communications, or another area of cloud technology, Cloud Source helps you find the right solution for your company. Contact us for more information.