Guidehouse Insights Explores How Utilities Are Creatively Investing in Cloud-Based Solutions

Utilities should engage with regulatory commissions to maximize the earnings potential of their cloud and SaaS investments

BOULDER, Colo., June 22, 2023 /PRNewswire/ -- A new report from Guidehouse Insights explores the evolution of cloud-based regulatory policy and outlines ways electric utilities can earn a greater rate of return on their cloud and software as a service (SaaS) investments.

Beyond inherent cultural skepticism, issues pertaining to accounting and regulatory parity have inhibited the adoption of cloud computing and SaaS. While a few state commissions have eased their restrictions to help level the playing field between on-premise and cloud-based solutions, without a standard approach or industry-wide consensus, eliciting widespread change remains a challenge. According to a new report from Guidehouse Insights, utilities are, however, using several creative workarounds to enhance the earnings potential from their cloud-based investments.

"The perception that electric utilities have failed to keep pace with the level of innovation seen in other major industries is largely correct," says Michael Kelly, principal research analyst with Guidehouse Insights. "As most other mission-critical sectors migrate to cloud-first software strategies, the question becomes, 'why not electric utilities?' The answer is multi-faceted."

Guidehouse Insights recommends that utilities engage with regulatory commissions to explore remuneration mechanisms in lieu of waiting for widespread standardization or industry consensus; regulators must be agile and flexible in ratemaking procedures to facilitate industry innovation; and energy software providers should continue advancing cloud-first development and sales strategies. Furthermore, industry stakeholders would benefit from greater collaboration and knowledge sharing, according to the report.

The report, Enabling Utilities to Invest in Cloud-Based Solutions, discusses how cloud and SaaS are transforming the energy software space and why regulatory and accounting rule frameworks have hindered cloud and SaaS adoption to date. The report provides approaches to work through traditional regulatory barriers and facilitate appropriate renumeration for cloud and SaaS investments. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Enabling Utilities to Invest in Cloud-Based Solutions is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights