Why Cloud-based Computing Makes Utilities More Business Agile

Improve grid modernization, resiliency and more with scalable infrastructure

In 2024, more utilities than ever are embracing the cloud. And for good reason. Utilities must manage the ever-increasing onslaught of information generated from enterprise systems, remote sensing and IoT devices. Grid modernization and resiliency, sustainability goals, and the application of cutting-edge technology like artificial intelligence (AI) also put demands on finite resources and computing power, as well as increased pressure to improve operational efficiencies and business performance.

Companies need the ability to pivot at a moment’s notice to make decisions faster and with greater accuracy. This requires continuously harnessing the raw data and imagery to develop timely, accurate and complete information and well-tuned predictive models.

That’s why more utilities are embracing the cloud and transforming their technology infrastructure into an agile environment ready to address these challenges. Today, cloud computing capabilities offer the perfect solution for utilities’ digital transformation needs.

Companies can effectively manage IT/OT integration, leverage data at scale, conduct complex analysis and employ cutting-edge solutions using cloud-native capabilities. This includes intelligent automation and machine learning to effectively address multiple market challenges and opportunities, all while keeping costs down and maximizing existing staff and resources.

The Age of Big Data Is Here

The age of big data is upon everyone, including utilities. Utilities with advanced metering infrastructure (AMI) can access consumption data every five to 15 minutes. Supervisory control and data acquisition (SCADA) provides system data area-wide, often in near real-time.

The use of distributed energy resource management systems (DERMS), distribution management systems (DMS) and outage management systems (OMS) only adds to the data onslaught. Moreover, utilities still collect data from manual and paper-based methods, including design documents, as-built plans, environmental studies and development plans.

Yet, with all these available data streams, having the resources to process data becomes time-consuming and resource intensive. And maintaining on-premises infrastructure is getting prohibitively more expensive.

The cloud provides the best option for quickly analyzing and processing large volumes of data to gain real-time insights. Businesses can adopt new technologies and services faster using the cloud since it offers more computing power, better processing and greater scalability.

So, what causes utilities to delay adoption?

Utilities can lack internal knowledge to implement and maximize cloud computing. For example, organizations must keep IT applications running while carrying out a significant cloud migration. Deploying the cloud for both IT and OT requires a unique understanding of managing a robust infrastructure since OT requires specific functionality around interoperability, latency, cybersecurity, liability and regulatory requirements.

Utilities often fear a “lift a shift model” that requires a complete re-platform solution, which entails high costs and pausing existing systems and applications.

While deployment strategies exist, for example, for deploying legacy and cloud infrastructure simultaneously, many utility organizations don’t have the sufficient skillset or knowledge. Typically, these organizations must upscale staff as well.

In addition, cloud systems operate best when you do pay-as-you-go pricing. However, most utility accounting practices focus on capitalized infrastructure. Most cloud solutions involve variable cost components based on usage, not capacity, yet most utility accounting systems are not accustomed to this different model. Lastly, there’s a misconception that moving to the cloud means losing control over your data. Yet it can be done as securely and efficiently as on-premises deployments.

Modernize from the Cloud

Cloud computing delivers utility business agility—providing speed and flexibility in the right direction. Companies can process, analyze and interact with data at scale to make highly accurate decisions across the organization for grid modernization and resiliency, customer experience, regulatory compliance and business development.

For starters, cloud computing enables the next generation of applications and capabilities and emerging technology, including AI and ML. Accelerating energy market systems (EMS), advanced metering infrastructure (AMI), advanced distribution management systems (ADMS), and other ambitious projects benefit from the cloud computing power and storage to carry out intensive processes.

Utilities can carry out ML and automation for tasks such as mining customer data to discover trends, developing personalized customer journeys, automating contact center operations, or optimizing meter-to-cash operations. Companies can also improve analytics by merging real-time data, such as traffic and weather, from multiple external sources for enhanced situational awareness in operations and control centers.

Moreover, cloud computing can help utilities make better decisions around aging infrastructure. As assets mature and performance diminishes, companies can apply data-driven analytics to extend asset life or perform condition-based maintenance, all improved by cloud-based analysis.

For example, AI use cases need large datasets to train models and churn out analytics. On-premises infrastructure can prove too costly and resource-intensive, particularly when process levels vary from minute to minute. The cloud offers flexible scaling, so companies only use and pay for the computing power and storage they need when needed.

Moreover, advanced analytics are now often provided as a service with the cloud. Companies like AWS provide “open search” through a ton of data quickly, efficiently, and scalable. Companies like AWS provide “open search” through massive amounts of data rapidly, efficiently and scalable. The offering is built into the service, so utility IT teams don’t have to worry about building that capability.

With more data and cutting-edge applications in place, companies can respond quickly to rapidly shifting needs and priorities. For example, operations monitoring, planning and incident response can include sensor information for real-time tracking.

Big data processing can automatically identify a series of data reads that indicate a potential problem before it arises. Asset management can be improved with machine learning applications that predict pole loading issues months in advance, optimize scheduling for predictive maintenance, overhead circuit patrols and line inspections, as well as sequence vegetation management activities like fuel reduction using drone imagery.

Utilities can provide improved customer experiences with automated chatbots that use Natural Language Processing (NLP) to provide visibility into customer matters at scale. ML-based big data processing makes communication and dissemination of data to customers much faster. It can help reduce call wait times, replace legacy systems that can take hours to update status and reduce cost per contact by shifting more call volumes to automated channels. Companies can query and mine customer data to develop highly personalized services and tailor products to the individual consumer level.

Cloud deployments provide a foundational platform for building and extending capabilities now and into the future.

Five Steps to Begin

Many utility businesses looking to deploy cloud computing struggle with how to begin. The below steps offer a logical and proven starting point.

1. Have a strategy

Utilities should have a cloud strategy in place first. Start planning by asking questions like whether you want a cloud-first or cloud-by-exception environment. Talk to users to understand their daily data and application needs, then work on how you can meet those needs.

2. Assess existing systems

Many options are available for companies looking to deploy cloud services, including software, platform, or infrastructure. Before deciding on a suitable deployment model, companies should assess existing IT and OT infrastructure. This can help determine whether systems should move first or whether to perform parallel migrations.

3. Think about a 5-year plan

The right cloud strategy involves long-term planning. Ensuring proper scaling, adaptability and flexibility is a continuous process. Think extensive and long-term, considering future users, contractors and application needs. Understand that needs and requirements will shift as priorities change.

4. Identify your most challenging data issues

Identify potential data roadblocks, then work backward to resolve those challenges. Automating data governance and incorporating strong data fidelity standards into the cloud can avoid creating data swamps—where data becomes stale.

5. Put some applications in the cloud as a pilot

Utilities can help ensure delivery success with a pilot project to ensure functionality, goals, roles and responsibilities. This should include managing and interacting with cloud service providers—understanding what it means to be in a brokering capacity benefits the project.

A Flexible Approach Built on Experience and Expertise

TRC helps utilities, both big and small, deliver business agility with cloud computing. We have worked with clients worldwide to successfully deploy cloud services to achieve business agility and operational efficiency.

Our practitioners possess in-depth experience implementing and supporting scalable cloud solutions. Our world-class technology team has expertise in many services, functions, applications and certifications. Our end-to-end services include staff augmentation for customer-owned and operated clouds to allow client staff to focus on higher-value work.

Beginning with understanding the needs and goals of the client, TRC knows how to creatively solve problems, bringing fresh insights to designing novel approaches and groundbreaking solutions. We leverage tested best practices, patterns and agile methodologies to ensure on-time and on-budget deployments.

With TRC, clients gain:

• Cloud strategy, consulting, architecture, integration and migrations
• In-depth knowledge of deploying scalable cloud solutions
• SaaS provider of best-of-breed, industry-specific applications
• Proven cloud delivery models, patterns and practices
• Experienced staff with industry expertise and technical skills

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