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A study from Navigant Research predicts that utilities will spend $11.2 billion on smart grid managed services by 2023.

Utilities to Pump $11.2B Into Smart Grid – Study

Jason Meyers
8/26/2014
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The smart grid as a service market will exceed $11.2 billion by 2023, a new report from Navigant Research forecasts, signaling the growing importance of communications technology in the utility sector.

Smart grid as a service -- or SGaaS -- platforms essentially outsource the communications functions of the smart grid, meaning more utilities will rely on communications service providers and technology vendors for the communications functions required of services such as smart metering, distribution and substation automation and analytics.

The development would be a major shift for utilities, which are grappling with the challenges of operating outdated communications networks but have been historically slow to migrate to advanced communications technologies. (See UTC Telecom 2014: More Power to You.)


For in-depth coverage of the smart grid and other utility communications topics, go to Light Reading's dedicated utility content channel.


Navigant's report predicts that outsourcing of communications functions related to smart grid deployments will become more palatable for utilities as they struggle with budget constraints and a dearth of internal IT intelligence, and as cloud-based solutions prove successful for businesses of all types. The report cites $1.7 billion in SGaaS spending in 2014.

If it pans out as the Navigant report predicts, SGaaS could provide market growth opportunities for telecom industry vendors and service providers that have traditionally not seen as much business from the utility sector. AT&T Mobility LLC , Verizon Communications Inc. (NYSE: VZ), Sprint Corp. (NYSE: S), Alcatel-Lucent (NYSE: ALU) and Ericsson AB (Nasdaq: ERIC) are all cited as key industry players in the report.

— Jason Meyers, Senior Editor, Utility Communications/IoT, Light Reading

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MikeP688
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MikeP688,
User Rank: Light Sabre
8/31/2014 | 11:22:37 PM
Re: makes sense
Thank you sir....eager to get things going-one thing is for sure as we implicity noted throuyghout our deliberations:   we have to think different..otherwise we'd be truly living up to Einstein's admonition that, "..Insanity is doing the same thing over and over and expecting a different result..." :-)
pcharles09
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pcharles09,
User Rank: Light Beer
8/31/2014 | 10:37:41 PM
Re: makes sense
@MikeP688,

Looking forward to your review/feedback.
pcharles09
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pcharles09,
User Rank: Light Beer
8/31/2014 | 10:34:31 PM
Re: makes sense
@thebulk,

Gotcha. Maybe in the next few years, it'll get replaced with a more appealing catch phrase.
MikeP688
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MikeP688,
User Rank: Light Sabre
8/27/2014 | 10:05:32 PM
Re: makes sense
I personally am fascinated by this notion of "think different" that seems to be the prevailing mode.   I hope to sign up for the program soon by SDG&E. 
pcharles09
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pcharles09,
User Rank: Light Beer
8/27/2014 | 6:00:28 PM
Re: makes sense
@MikeP688,

HVAC as a service. It's a bit of an exagerration but that sounds like a very interesting idea. It would definitely help to make the install & maintenance costs much cheaper.
thebulk
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thebulk,
User Rank: Light Sabre
8/27/2014 | 2:17:58 PM
Re: makes sense
No doubt they will likely seek help managing all the data, its a daunting task. 
kq4ym
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kq4ym,
User Rank: Light Sabre
8/27/2014 | 9:37:18 AM
Re: makes sense
As the utility companies make increasing use of smart grids they will ceratianly make use of outside help in managing the data. Just as electric companies now hire outside companies for line installation and repairs, they'll certainly be hiring lots of firms to manage and build smart grids as well.
thebulk
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thebulk,
User Rank: Light Sabre
8/27/2014 | 1:15:38 AM
Re: makes sense
For sure, I see the value in Smart Grid, but the aaS part is just sort of silly to me. 
MikeP688
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MikeP688,
User Rank: Light Sabre
8/27/2014 | 1:01:41 AM
Re: makes sense
I have seen 'snipets" of it already happening--I can't see why people will not embrace the emergence of it both at the consumer and business level as epitomized what Sempra Energy's San Diego Gas& Electric is trying to do.  Please see this: http://tinyurl.com/kjhz2bj
pcharles09
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pcharles09,
User Rank: Light Beer
8/27/2014 | 12:27:09 AM
Re: makes sense
@thebulk,

If you don't see it, the value proposition decreases. Marketing geniuses have determined that the 'as a service' makes people feel take care of... which sells!
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