The concept of the cloud and managed services, which is of growing importance for Finley client’s extends to the smart grid as well. Though relatively small today, the market for “smart grid as a service” (SGaaS) is poised for rapid growth, fueled by demand for managed services from utilities with limited budgets and IT expertise, according to new market research from Navigant Research. SGaaS market revenues will rise from $1.7 billion in 2014 to $11.2 billion in 2023, Navigant predicts.
“Traditionally, utilities have shied away from outsourcing operations beyond back-office functions like billing or payroll,” Navigant senior research analyst Richelle Elberg was quoted in a press release. “But the tremendous growth in cloud-based services for business of all types has increased utilities’ awareness of and comfort levels with cloud-based solutions.”
Besides the potential to reduce the cost of smart grid implementation, SGaaS offers utilities several potential advantages over in-house smart grid deployment, according to Navigant. These include shorter time to market and improved security, a key aspect of any smart grid implementation. “Cloud computing has advanced to such a degree that the security employed by third-party vendors may be stronger than what a utility can implement internally,” the researchers state.