Cloud Computing … How to Overcome Barriers Found at Electric Utilities and Deliver Value
By Ken Caird, Electric Utilities and Energy CTO at VNCTech Group
In much of todays' modern digitized world, cloud computing has evolved into the platform of choice experiencing a substantial adoption over the past 5 years. As Figure 1 shows, the worldwide spending in cloud computing has an average compound growth rate of 19% over the last five years while IT spending in general has shown a modest 3% annual compound growth rate. These numbers show a definite trend toward public cloud computing adoption across multiple industries.
Although this is true for many industries, it's not the case for the overall electric utility industry. Based on interviewing many executives across electric utilities and companies supporting electric utilities, the adoption rate of cloud computing within the electrical utility industry is significantly lower than the industry average. The reasoning based on responses collected from these executives is because electric utilities face barriers to cloud computing that other industries do not face:
Expensing of cloud computing costs … CapEx vs OpEx issues
Federally Mandated Cyber Security Regulations
Similar to many companies in other industries, electric utilities does recognize the many benefits of cloud computing, however, to justify the transitions from traditional “on-premise” computer platforms, applications, and services to a public cloud model, the barriers listed above must be overcome ...