Are Utilities ready for Cloud Based MDM?
It is a common question raised by analysts and media in discussions and in print: “Are Utilities ready for Cloud Based Meter Data Management (MDM)?” It has become an increasingly hot topic, and recently Verizon and eMeter announced their new relationship to offer MDM in the cloud.
Industry analysts are curious if utilities are ready to “give up control” of their Meter Data Management Platform. While a great question to analyze, the wording of the question itself is misleading. To that end, Communication Service providers are not about “control.” They are not about controlling the application or the data. The utility has that responsibility. On a similar note, Communication Service providers are not using the data, they are managing the application and its infrastructure while providing world class security to make sure the system stays up and running (while ensuring the information stays securely in the hands of the utility and the consumer). The utility can then use the data in many ways (for billing determinates, analytics analysis, updates to CIS, information to the outage management system, etc.).
I think the real point is utilities are indeed ready to look at a cloud based MDM platform because it makes sense. It can save them CapEx and OpEx dollars over the life of the application. It is low risk proposition because communication service providers like Verizon have a proven track record in delivering reliable end to end security and communication solutions. The cloud is also a platform that was architected with security in mind, which will give utilities the peace of mind that they are looking for in a solution like this.
In the end, it can be a high reward situation for utilities because they are getting the best of both worlds. They will be getting the dependability of a world class communications service provider and a reliable MDM software platform in the cloud. I think the utilities will hear us loud and clear.
Verizon will be speaking at the Smart Grid Security East Conference held in Knoxville, TN. Feel free to join us to hear more about our latest accomplishments in the smart grid arena during our conference track: “Secure Communications Networks: Build it or Partner with Public Carriers?”
Do you Think Forward?
Thanks for this insight "under the hood" of the potential future of MDM. From an efficiency standpoint, cloud computing for MDM makes as much sense as fuel injection vs. a carburetor. And, to carry the analgogy one more step -- cloud computing is as titillating as the carburetor vs. fuel injection. One nasty detail - OWNERSHIP, perceived or real, of the process. Ultimately, too, the claxon call will be SECURITY!, though that is truly couched in comfort with legacy ways. Exciting times in a relatively static industry - the guard is changing-- perhaps that will be the impetus for ultimate change.
Best,
Dan Samenus