Smart Meters Create a Huge Opportunity for Data Services in Utilities (Analyst Insight)

Table of Contents

OVERVIEW

• Catalyst
• Summary

ANALYSIS

• Utilities' future investment in data centers will be considerable
  • Smart metering is the most important driver for investments in utilities' data centers
  • Smart meters are not the only driver for data center investment
  • The different regulatory framework creates different opportunities in different geographies

• There are clear arguments to support the case for the adoption of data services by utilities
• The opportunities will be long term and there are many cultural barriers to overcome
  • Smart meter-driven data center opportunities will manifest in the medium to long term ...
  • ... with only a handful of examples of utilities currently procuring data center services ...
  • ... due to significant barriers to entry

• Recommendations for vendors
  • Act soon
  • Combat conservatism through industry alliances
  • Demonstrate a commitment to data security
  • Go armed with strong service level agreements
  • Choose geographies carefully
  • Remember that utilities are heavily regulated
  • Focus on areas of business that are most easily won

APPENDIX

• Definitions
• Methodology
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: Typical demand curve of energy use
• Figure: Electricity above baseloads becomes increasingly expensive
• Figure: The least liberalized markets in Western Europe have the most rapid adoption of smart metering
• Figure: Utilities' objectives for 2009 focus on data and database management, rather than data center management
• Figure: Security is the highest ranked objective for utility CIOs in 2009