Roundtable: Utilities and Cloud Technology, London, 26 May 2016

Utilities are having to adapt and evolve as the fourth industrial revolution rolls out with the advent of smart systems. But where does the cloud fit in? Mathew Beech reports.

In recent years there has been a growth of cloud computing technologies and systems, whereby companies take advantage of online computing power rather relying on big, expensive severs on site.

However, a Utility Week roundtable, held in association with Tata Consultancy Services (TCS) last month, decided that, while utilities are using the cloud, they are doing so with caution.

The reluctance of many utility companies to go all out stems from security concerns and worries about keeping control of business critical – and nationally important – infrastructure. Value-added and customer-facing services were those deemed most likely to find their way into the cloud, with the development of hybrid cloud systems also expected to make an impact on utilities.

The opening remarks from the discussion came from Sutton and East Surrey innovation manager Jeremy Heath, who said the great advantage of the cloud was that it could deal with the influx of new data that will arise from the rollout of smart meters.

“Processing power – that’s why we’re interested in the cloud, because we’ll be able to make near real-time decisions from the data from our customers,” he said.

Research by Utility Week and TCS reveals that cost pressures are the main reason why utilities will adopt cloud technology, and Heath was joined in this assertion by Affect Energy head of digital, Andy Came. He said new companies are concerned about finding cost-effective solutions to setting up their business and are looking to the cloud for this.

Cloud technologies are also aiding co-operation with the supply chain, according to Michael Cook, transformation leader and disruptive strategist at the Thames Water Infrastructure Alliance. This enables the different contractors to use a common platform without having to overhaul their existing systems.

Despite these economic advantages, there are reservations about the cloud. It is deemed risky for services that affect infrastructure operations (such as systems that can conduct remote shutdowns) to be placed in the cloud in case of a security breach or the service going down.

Electricity North West head of IT and telecoms Paul Geddes called these systems a utility’s “lifeblood”, and Heath added that ensuring they are locked down means there is always a “base level of service” the organisations can operate, even if the cloud system fails.

Customer service solutions are seen as the most obvious – and safest – way forward for utilities to adopt cloud solutions. The roundtable agreed that this is being driven by consumer demands to access their data, and the fact the cloud technologies are already a significant part of modern life. One delegate stated that utilities would be “left behind” if they failed to offer cloud-based solutions.

While the relentless march of technology is having a dramatic effect on modern life, the impact it is having on utilities is being tempered by security concerns. Some things will stay out of the cloud for the foreseeable future. However, cloud technology is being adopted and embraced, and it is changing how the utilities operate and engage with their customers.

Rishabh Arora, director, GTM Solutions,TCS Utilities
Business Unit  

“Utilities have approached the first round of cloud adoption in moderation, and this gives them an opportunity to leverage the learning’s from other industries for the next round. They could lay the foundation for the API economy by setting up an outside-in architecture to enable sustainable innovation in a broader ecosystem.”

Ian Ballantyne, infrastructure and telecoms tower manager, UK Power Networks

“When cloud providers have outages they tend to be big and they would have a significant impact on a utility.”

Jeremy Heath, innovation manager, Sutton and East Surrey Water

“The rise of smart metering and smart networks will drive a requirement for greater processing power that we will struggle to meet on premises.”

Aninda Mukherjee, enterprise
architect  – utilities transformation, TCS Utilities ­Business Unit  

“It would be very brave of a utility to use the cloud for critical infrastructure and services. The transformation deployment and selection of various cloud models, in conjunction with existing on premise technologies, will help the industry to move forward.”                    

Chris Welby, head of regulation, Bristol Energy

“The benefits of the cloud are around its processing power and it is not just about data storage.”

Paul Geddes, head of IT and ­telecoms, Electricity North West

“Fundamentally we just couldn’t move our electricity network control systems into the cloud at this stage. They are our lifeblood for our business and our customers.”

“The cloud has got its place for commodity IT services… but for niche or bespoke requirements in our business we’re some way off.”