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NETWORK / 13 / MARCH 2017 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. I n d u s t ry v I e w: I n t e r n e t o f t h I n g s Jacob Tompkins, Former managing director, Waterwise "IoT can help drive behaviour change." Global investment in cloud grew by 32.2 per cent between 2014 and 2015. By 2019 investment in cloud infrastructure will reach $54.6bn, up from $33.4bn in 2015. $33.4bn 2015 $54.6bn 2019 2014 2015 + 32.2%