Water & Wastewater Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/786885
Consultancy view - cloud Despite being perceived as essential, actual cloud adoption by utilities varies widely. New energy retailers, have built their IT landscapes on the cloud, while energy network companies are at the other end of the spectrum taking their first steps in cloud investment. Water companies and large energy suppliers are somewhere in the middle. One thing they all agree on is that investment in the cloud is essential and the argument is now whether they are ready for the cloud, and not whether cloud is suitable for them. Utilities have invested in cloud solutions for the following reasons: • Cost reduction and IT consolidation. • Speed and scalability. • Process standardisation and increased functional capability. As they progress with their cloud investments, we believe it's vital utilities are aware of the following areas: • Technology and IT management complexity: Mission-critical systems and security concerns mean some IT systems will remain on-site. It is also unlikely utilities will be able to source all their cloud solutions from one provider, so must be able to deal with multiple vendors. • Vendor lock-in: Portability between providers remains untested territory that needs to be considered to ensure the exit costs are not prohibitive and the transition does not result in disruption. • Security: Utilities need to ensure data security and legal issues are considered when getting into cloud service contracts. Utilities have proceeded with caution, but they have now tested the waters. Many are now filled with confidence that by extending their cloud footprint, they will be able to reduce their IT costs and can invest in preparation for the impending market and industry changes. Anand Ganguli, technology consulting director, PricewaterhouseCoopers In the future, your fridge will be able to get the best spot price for electricity, or even switch itself off for an hour when grid loading is high, all because of the Internet of Things (IoT). Networks of interconnected sensors and nodes gathering smart data should facilitate network optimisation. Networks of devices will provide information on things like peak flow or water quality, enabling operational and strategic decisions. Currently, real-time data is too expensive but is becoming more accessible. IoT will also provide information to customers, which can help drive behaviour change. Looking further forward, IoT will enable fully autonomous machines and self- managing networks. Soon drones and robots will make their own decisions, whilst combining IoT and 3D printers means networks would be able to fix themselves. Greater interconnectivity in the future will require the water sector to review what data it really needs, and in my view, there should be a presumption of open data which would facilitate greater interconnectivity and innovation. Industry view: Internet of Things "IoT can help drive behaviour change." JaCob TompkIns Former managing director, Waterwise Cathryn Ross is in her second stint at Ofwat — this time as chief executive — and her tenure will go down as one of the most eventful since the sector was privatised. Retail competition in the non-domestic market in England takes effect from April. The last price review saw the water and sewerage utilities place greater emphasis on customer service, and adopt totex as well as Outcome Delivery Incentives. On top of this, plans are already underway for the next price review (PR19). That is a challenging agenda. "It's a tough role that she has at the helm of Ofwat," says Fredrick Royan, vice president, environment and water at Frost and Sullivan. "But Cathryn is driving and encouraging the water utilities to change, become more efficient. She's very keen for the utilities to really embrace the innovations that are out there; become customer- centric; and gather the data which allows them to embark on the journey to improve efficiency." This change in focus driven by Ross has been welcomed by the Consumer Council for Water. Its chief executive, Tony Smith, says: "Under the leadership of Cathryn Ross has got Ofwat and the water industry focused more on customers and maintaining customer trust. That is quite a shi" that we were looking for, and the transformation has really moved on." Royan puts Ross' success down to her "hands-on approach and being more engaged with the water utilities. So, what has been Ross' key achievement so far? Royan cites two – the opening up of the non-domestic retail market, and smart data collection and analytics. But he believes it will take time before it is known how successful these will be. "At the end of the day the change in the water utilities is how she will be judged. That is the biggest challenge," Royan concludes. Cathyryn Ross Chief executive, ofwat Book your free tickets today at www.utilityweeklive.co.uk Profile www.wwtonline.co.uk | WWT | march 2017 | 29