Leveling the Playing Field for Cloud Computing

Advances in technology have created new opportunities for companies across all industries to optimize their operations. Cloud-based service options are a great way for utilities to transfer the risks associated with owning and operating equipment to third parties. They can also provide increased computing capacity, faster set-up, and lower overall cost.

Even though cloud services provide a number of rich benefits for utilities, they typically fall into the category of operating expenses, which must be carefully managed due to limited budgets. In contrast, on-premise solutions can be capitalized, which allows them to earn a rate-of-return. This creates an incentive for utilities to choose on-premise solutions over cloud computing options despite the clear advantages.

Although the current policy governing utilities discourages service-based solutions, some regulators are finding ways to help level the playing field. To learn more about what states like New York and Illinois are doing to help support utilities in making IT decisions that align with their best interests, check out this Utility Dive Article, Making cloud computing and other services pay for utilities and customers.


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