The utility industry has been grappling with rapid changes for nearly a decade, driven by customer expectations and emerging technologies. In 2016, the push toward cloud-based Customer Information Systems (CIS) was already gaining momentum, with utilities recognizing the need for agility and scalability.
Fast forward to today, and while progress has been made, the reality is that many utilities are still operating on outdated systems that struggle to meet modern demands. The need for transformation is more pressing than ever. Despite almost ten years of technological advancements, there’s still significant work to be done for utilities to fully embrace the agility offered by cloud-based CIS platforms.
The utility industry is no longer defined by just delivering energy. Now, it’s about building long-lasting customer relationships and offering tailored experiences. But are utilities keeping up?
A whopping 95% of utilities report that customer trends, such as demand for new pricing options, smart devices, and self-service, are already having an influence on their CIS platforms. That influence is only growing. In the next three to five years, 77% of utilities expect these new customer touchpoints to have an even greater impact on how they operate.
Utilities aren’t just dealing with more customer data; they’re also tasked with managing new customer behaviors. Today’s customers want more control over their energy usage, including new services like solar programs or energy efficiency options. Nearly two-thirds of utilities (65%) expect the influence of new products and services to grow within the same timeframe.
The numbers don’t lie: the utility-customer relationship is changing, and it’s only going to become more complex. So, how can utilities keep up with this new reality?
While customer demands are evolving, the technology utilities use to meet those demands is lagging behind. Utilities are facing a reality check: fewer than 30% of respondents feel their CIS is very well prepared to meet these growing customer demands. And it’s not just customer-facing technologies where utilities are struggling.
When it comes to adopting modern tech like smart meters, IoT devices, and real-time data analytics, many current CIS systems are hitting a wall. For example, only 46% of utilities feel their CIS is well prepared for AMR/AMI integration. Even more concerning, just 33% feel prepared to handle the surge of real-time data that these technologies require. And when it comes to IoT, the numbers are even worse: only 23% feel their CIS is ready to support the vast amounts of data coming from smart devices and sensors.
The takeaway? Utilities need to adopt more agile, scalable systems to keep up with the real-time demands of today’s connected customers and technologies.
In response to these challenges, many utilities are turning to cloud-based CIS platforms. These systems are designed to be agile and scalable, providing utilities with the tools they need to handle the influx of real-time data and dynamic customer interactions.
According to the research, 70% of utilities agree that cloud-based technology is important for the future of the industry. And they’re not just talking theory—58% of utilities believe that cloud technology could be a viable solution for their CIS.
So, what makes cloud so appealing? For many, the answer lies in its flexibility and ability to scale with the business. 59% of utilities see the potential for cloud-based CIS to lower costs, while 46% value the agility it offers to adapt to rapidly changing market conditions. With more customer touchpoints and an increasing amount of real-time data, this agility is critical to staying competitive.
Of course, with every shift in technology, there are concerns. For utilities considering a move to the cloud, security and privacy remain top of mind. 45% of utilities identify security as their primary concern, while privacy is cited as a significant challenge by 40%.
Despite these concerns, cloud solutions are proving to be not just secure, but often more secure than on-premise systems. As Andrew Jornod, CEO of VertexOne, noted in the research, “With the increasing sophistication and frequency of cyber attacks, there is a strong argument that your applications and data are safer in the cloud.”
While concerns about control and system integration remain (40% and 37%, respectively), the benefits of cloud-based CIS—especially in terms of cost savings and agility—are hard to ignore.
Why are so many utilities turning to cloud-based solutions? The numbers tell a compelling story. For utilities looking to modernize their CIS, the benefits of cloud go far beyond just technology integration:
The flexibility to adapt and expand is exactly what’s needed to thrive in the new utility era.
While the benefits are clear, the transition to a cloud-based CIS doesn’t happen overnight. Many utilities are still operating on legacy systems, with 75% of utilities reporting that their current CIS is over 10 years old. This means they’re often missing out on the latest technologies that could enhance their customer interactions and operational efficiency.
But there’s good news: as cloud technology becomes more widely adopted, more utilities are seeing the path forward. Those that embrace the change sooner will have a head start in meeting customer demands, integrating new technologies, and maintaining a competitive edge in the evolving market.
The utility industry is at a crossroads. With customer expectations and technology advancing at lightning speed, utilities that fail to adapt will find themselves falling behind. Cloud-based CIS platforms provide the agility, scalability, and real-time capabilities utilities need to stay ahead in this new era.
The numbers speak for themselves: the future is in the cloud. By making the shift now, you’ll be better equipped to handle the next wave of customer demands and technological advancements. The time to act is now—your CIS system needs to evolve to keep pace with a rapidly changing world.