I recently had the opportunity to review the “Electric Grid Managed Services Report – 2018” published by IHS Markit. There is no question that the report is excellent reading for anyone interested in service business in the energy industry. In their report, IHS Markit describes the key steps of AMI evolution, which inspired me to discuss the steps from the service business perspective.

When joining the Landis+Gyr EMEA organization years ago, I was joining a famous energy meter manufacturer known mainly for its high-quality smart meters and advanced software for collecting metering data. At the time, the term ‘service business’ was not a key word in the organization or in our industry in Europe, except in the Nordic countries where smart metering has been offered as a service since the early 2000's.

The growth pace of the global Smart Grid as a Service (SGaaS) market is increasing as more and more utilities are turning to service-based delivery of smart grid operations. Multiple challenges, such as regulatory pressures, rising consumer expectations, and increasing complexity of the smart grid infrastructure to name a few, drive distribution system operators to embrace Managed Services as an opportunity to optimize their physical assets and business processes.

The Software as a Service (SaaS) model continues to gain traction among energy companies as they look for ways to adapt to increasingly complex and costly integrated application environments with shorter implementation cycles.