Oracle utilities has released the results of a study conducted to understand the rate at which utilities are adopting cloud solutions and the factors driving them to do so.
According to the study, the use of cloud solutions by utilities continues to increase.
71% of utilities, up from 45% three years ago, now use cloud software. The key driver is the need to improve customer experience.
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However, 85% of utilities are concerned about cybersecurity and regulatory acceptance remains a barrier to the adoption of cloud software.
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Other key study findings include:
- Changing customer expectations
31% of utilities have invested in cloud software to improve customer experience and engagement and 29% for customer information.
Customers are increasingly looking for more information regarding their overall energy usage and bills, and how to lessen the impact of both. And they expect this with the high level of service and personalisation that they are enjoying in other sectors, such as retail and banking.
- Drowning in data
64% of utilities say cloud computing is critical to their future success. A key driver is the need to better manage an ever-growing pool of data coming from smart meters, IoT sensors, customers’ home energy devices, and more.
Jason Rodriguez, CEO of Zpryme, said: “Utilities are seeing the impact that digital transformation is having on their business model.
“The challenge is so much greater than simply capturing millions of disparate data points. Utilities need IT tools to manage and drive better business decisions and cloud computing provides the agility to more effectively integrate data predictively use it.”
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- Security concerns remain
85% of utilities are concerned about security and 81% say data privacy concerns is the biggest barrier towards the adoption of cloud software.
- Regulatory right-sizing
26% cited regulatory acceptance as a continued barrier to cloud adoption. The majority of utility respondents (75%), however, also note that regulators can play a strong role in helping protect customer privacy and security.
- Clouds ahead
74% to spend more on cloud in the next 3-5 years whilst 43% of utilities have increased their operational spending by at least 25% over 2015 levels.
Brian Bradford, vice president, industry solutions, Oracle, adds: “Just a few years ago, utilities looked at cloud computing with scepticism at best. Today, many realize it’s essential to their survival.
“Utilities are increasingly seeing cloud as a fundamental asset in meeting ever-evolving expectations, mitigating security concerns, and turning data into an opportunity to modernise and evolve their operations to better serve constituents and customers.”
The study comprised more 150 utility leaders.
To download the full report, visit: https://etsinsights.com/reports/the-acceleration-of-cloud-computing-for-utilities/