The market for utility customer information systems (CIS) and billing solutions is on the brink of a major transformation as many leading utilities prepare for an overhaul of their systems infrastructure. With a large number of systems that are more than 20 years old and designed for a simpler business model of regulated electricity distribution, utilities' smart grid initiatives are having a heavy influence on the selection of more robust systems that can handle data feeds from smart meters, time-of-use (TOU) and real-time pricing (RTP), demand response (DR) programs, and the sheer volume of data that will be generated from the smart grid. According to a new report from Pike Research, this systems transformation will represent a total market opportunity of more than $4 billion.
"The arrival of the smart grid brings a new level of complexity that will need to be accompanied by more highly capable utility systems," says research director Bob Gohn. "Many of the largest utilities have already begun an overhaul of their CIS and billing systems, but this wave will intensify, and will begin to penetrate the next tier of utilities, over the next several years. We anticipate that such systems upgrades will impact utilities representing 90 million electricity customers in the U.S. by 2015."
Gohn adds that within the next few years, this massive upgrade will be accompanied by fundamental shifts in the competitive landscape for utility CIS and billing. While Customer/1 is the leading system in use today, many smart grid utilities will have no choice but to fully replace it. As it phases out from the competitive landscape, Customer/1 will leave a vacuum that established vendors, such as SAP and Oracle, are eager to fill. This vacuum also attracts new entrants from the telecommunications CIS and billing world, such as Convergys and others.
Pike Research's report, "Next Generation Utility CIS", analyzes the market opportunity for CIS and billing systems upgrades among utilities in the United States. It examines the business drivers, key applications, technology issues, and competitive dynamics that will define the next generation of utility systems in the smart grid age. The study features profiles of key industry players, including SWOT analysis, as well as market forecasts through 2015.
source: Pike Research
