MO SGIT 19 Navigant Research

RESEARCH REPORT
Energy IT and Cybersecurity Overview

ADMS, AMS, CIS, CRM, DERMS, DRMS, EMS, GIS,
MDMS, MWMS, OMS, SCADA, Analytics, and
Cybersecurity Solutions: Global Market Analysis and
Forecasts
Published 4Q 2019
Michael Kelly
Research Analyst
Richelle Elberg
Principal Research Analyst
Section 1
EXECUTIVE SUMMARY
1.1 Introduction
The electric utility industry is in the midst of a paradigm shift. Both utilities and vendors are
in a state of massive transformation as digital technologies and changing business
landscapes converge to bring about new pressures and opportunities. The electric utility
business has been edging toward massive transformation for some time. Beginning with
the proliferation of smart metering in the early 2000s, utilities have turned to data as a new
source of value in the Energy Cloud future. This approach has led to the expansion of low
cost sensors throughout the transmission and distribution (T&D) networks and
unprecedented levels of data generation. Yet, without advanced IT systems to process this
data, true situational awareness and operational insights cannot be achieved.
Although the influx of data is prompting utility IT investment, there are also significant
drivers in terms of industry pressures. The rapid growth in distributed energy resources
(DER) is leading utilities to invest in IT solutions—including advanced distribution
management systems (ADMSs), distributed energy resource management systems
(DERMSs), and a number of analytics solutions—that can mitigate the associated
disruptive effects.
Underlying these technological drivers is a revaluation of the customer. Customers expect

higher levels of service from their utilities. This expectation comes, in part, from a shift in
consumer expectations in other industries, whether it be media services (Netflix), lodging
(Airbnb), or retail (Amazon). Utilities are responding with increased investment in
customer-centric solutions, including customer information systems (CISs), customer
relationship management (CRM) solutions, and analytics. The common thread in these
industry shifts is digital disruption, with customer-centric thinking (and investment) winning
out in the end.
Navigant Research, a Guidehouse company, expects IT systems and analytics to account

for a significant—and growing—portion of utility investment over the next decade. Financial
constraints and competing budget items as well as existing complex homegrown systems
mean utility investment in new IT solutions are likely to remain incremental in most regions.
©2019 Guidehouse Inc. Notice: No material in this publication may be reproduced, stored in a retrieval system, or transmitted by any means,
in whole or in part, without the express written permission of Guidehouse Inc.
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1.2 Report Scope

This Navigant Research report covers energy IT and cybersecurity, including 12 major
energy IT systems, four energy analytics application areas, and cybersecurity solutions:
• ADMSs
• Asset management systems (AMSs)
• CISs
• DERMSs
• Energy management systems (EMSs)
• Geographic information systems (GISs)
• Meter data management systems (MDMSs)

• Mobile workforce management systems (MWMSs)
• Outage management systems (OMSs)
• SCADA systems
• Energy analytics, segmented in four classes of use case: asset performance, customer
operations, demand side management (DSM), and grid operations
• Utility cybersecurity, for investments in advanced metering infrastructure (AMI),
distribution automation (DA), substation automation (SA), and transmission;
cybersecurity for generation applications is excluded
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1.3 Global Forecast

The global market for energy IT and cybersecurity for software and services is projected to
reach approximately $18 billion in 2019 and surpass $19 billion in 2020. Navigant
Research expects the market to grow at a compound annual growth rate (CAGR) of 6.6%
through 2028 to more than $32 billion. On a cumulative basis, the smart grid IT and
analytics software and services market is expected to be worth nearly $247 billion over the
next decade.
Chart 1-1. Energy IT, Analytics, and Cybersecurity Revenue by Region, World Markets:
2019-2028
(Source: Navigant Research)
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Section 2
MARKET ISSUES
2.1 Introduction
Utility hardware—sensors, meters, etc.—provide utility operators with grid data, but IT
solutions make that data actionable, rendering the grid truly smart. The potential for
dramatically improved efficiency, reliability, and profitable performance is enormous—as is
the need for significant additional investment on the part of electric utilities worldwide to
achieve this potential. Given the evolution of system architectures and converging
solutions in recent years, lines of delineation between systems have become blurred. In
this report, Navigant Research, a Guidehouse company, defines and describes the major
IT solutions in use by utilities.
2.2 Energy IT Systems Overview

This Navigant Research report covers 12 major utility IT systems, as follows:
• Advanced Distribution Management System (ADMS): An ADMS unifies operational

and engineering data for state analysis, switching, outage management, and planning.
It maintains a single as-operated model of the distribution network based on the as-
built model (typically from a geographic information system [GIS]). This consolidated
suite of applications includes real-time monitoring, simulation, static engineering
applications, and outage management.
Applications include distribution power flow analysis; contingency analysis; switch
order management; short-circuit analysis; integrated volt/volt-ampere reactive control
(IVVC); fault, location, isolation, and service restoration (FLISR); loss analysis;
simulation training; field device control; historical data gathering and event reporting;
outage prediction and management; and reconfiguration.
• Asset Management System (AMS): AMSs provide utilities with a means of managing
infrastructure components to extend service life, reduce maintenance costs, and
address potential failure points. New AMS go beyond traditional static systems of
record, integrating relevant data from accounting and finance, operations and planning,
and engineering systems. AMSs also produce actionable outputs for different
operating segments within the utility.
AMSs support efficient management of assets by enabling tighter interaction with
workforce management systems and enterprise resource planning (ERP) systems.
These systems, which manage both day-to-day workforce operations and longer-term
planning, can optimize decision-making in these areas and provide access to more
accurate and further-reaching data on asset health and performance.
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• Customer Information System (CIS): Billing and CIS solutions provide the databases
and information systems that contain all billing and personal data pertaining to utility
customers, including billing rates, historical power consumption, associated charges,
and meter information. Billing and CIS solutions represent one of the most complicated
and expensive IT applications needed by utilities.
• Customer Relationship Management (CRM): CRM refers to systems that allow
businesses to manage business/customer relationships and the data and information
associated with them. These are systems of record, and they do not perform
processes or calculations, highlighting the need for associated CISs. Within the utility
vertical, CRM can be seen as a hub for customer interactions, storing data such as
contacts, account, sales, and order information, service records, and history all in one
central location.
• DER Management Systems (DERMSs): A DERMS enables optimized control of the
grid and DER (to the extent that a utility may be able to dispatch and control DER). To
minimize disruptions and the presence of phantom loads, utilities need to manage the
grid more proactively. Common use cases include volt/volt-ampere reactive (Volt/VAR)
optimization, power quality management, and the coordination of DER dispatch (when
possible) to support operational needs.
DERMS platforms allow grid operators to reliably operate their systems with high
penetrations of renewable energy, storage, EVs, and flexible loads. DERMSs may also
enable new business models based on DER-based energy services, grid operation
optimization, peak load management, grid decarbonization, and microgrid integration
within distribution grids.
• Demand Response (DR) Management System (DRMS): A DRMS helps utilities

manage DR programs and improve program ROI. It allows utility operators to view and
add to the database of loads available for DR, to call events and/or issue pricing
signals, and to perform the measurement and verification after events to determine
how much customers need to be compensated for reducing loads.
• Energy Management System (EMS): EMSs are used to monitor, control, and
optimize the performance of the generation and transmission system. As well as
network management tools, they typically include applications for the optimized
scheduling, dispatch, and monitoring of generation resources. These systems may
provide the links to outside system operators (e.g., energy markets) or links to the
operational SCADA systems within the transmission and distribution (T&D) network.
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• GIS: A GIS is used to capture, store, manipulate, analyze, and manage all types of
geospatially referenced data. GIS tools enable users to create queries, analyze spatial
information, edit data and maps, and present the results. Geodata types relevant to
electric utilities might include land-based data, streets, ownership/real estate,
vegetation, network topology, GPS location data, census data, and much more.
• Meter Data Management System (MDMS): A MDMS is a software application that
accepts the input of data from utility meters, validates that data, and makes the data
available for use in other applications. Typical capabilities of MDMSs include: meter
data collection and management, validation, estimation, and editing, advanced billing
data, back-office data synchronization, exception management and workflow, real-time
command and control, and enhanced outage management.
• Mobile Workforce Management System (MWMS): Utility MWMSs allow utilities to

bring real-time information to their technicians in the field, their managers, and
executives. For utilities, the common functionalities of MWMSs include dispatch,
routing, dissemination of technical information to the field force, worker and asset
monitoring, and reporting.
• Outage Management System (OMS): OMSs are software applications, often
integrated with other utility applications, used to detect, diagnose, and plan assistance
in the restoration of power during an outage. Traditionally, outage management might
have been handled by a call center and process workflow to track reported faults and
ensure that maintenance teams were dispatched to the presumed location of the
problem. Today, much more sophisticated outage management solutions are emerging
that span the entire energy IT space.
• SCADA: SCADA refers to computer-based control systems used in a wide variety of

industrial monitoring and process control applications, including electrical utility
substations. SCADA systems generally include specific types of sensing, control, and
computing devices connected by some form of local or wide area network
communications.
2.3 Energy IT Systems Market Outlook and Rank

Table 2-1 provides a ranking of energy IT systems according to cumulative revenue and
highest compound annual growth rate (CAGR) over the forecast period. From a global
perspective, Navigant Research, a Guidehouse company, expects strong growth across
the ADMS space, including DERMS (which is offered as an ADMS module). A number of
systems show moderate growth over the forecast period, as smart metering initiatives
(MDMS) and larger grid modernization initiatives (AMS, MWMS) continue to advance. The
market for standalone operational systems, including EMS, SCADA, and OMS, are
expected to show low growth as these systems are installed under ADMS procurements.
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In terms of cumulative revenue, CIS and EMS benefit from large installed bases (and thus
high ongoing upgrade and maintenance spending) and high initial system costs. As
expected, ADMS is high on the list, with strong growth expected and high system costs
given the extension of EMS, SCADA, and OMS modules. For the purposes of this forecast,
DERMS modules are considered outside the scope of ADMS; this is to demonstrate the
strong growth expected across the DER management market. That said, DERMS modules,
as with the other ADMS modules, are expected to be procured under ADMS contracts. The
remaining markets are all relatively grouped together, with MWMS falling short due to a low
installed base and only moderate growth expected. More information is in Section 5.
Table 2-1. Energy IT System Rankings: Cumulative Global Investment and Growth Rate
Rank by Cumulative Investment Rank by CAGR
System $ Millions System %
CIS 52,871.4 DERMS 18.5%
EMS 29,006.2 ADMS 8.7%
ADMS 24,198.7 MDMS 7.1%
GIS 14,761.3 AMS 7.0%
CRM 13,764.9 CRM 4.5%
AMS 11,743.1 CIS 4.0%
DERMS 11,161.8 MWMS 3.6%
SCADA 7,878.2 GIS 3.5%
MDMS 7,384.7 OMS 1.2%
OMS 7,178.1 EMS 1.1%
MWMS 2,332.7 SCADA 1.0%
2.4 Energy Analytics Overview

Applications for utility analytics come in many forms, used by many operating segments
within the utility. Navigant Research has broken up the landscape of utility analytics into
four key segments: asset performance management (APM), grid operations analytics,
demand side analytics, and customer operations analytics:
• APM: APM is a new sub-market of utility IT & analytics that takes AMS to the next level
by enhancing the availability of information on assets and offer tools for optimized
decision-making. APM tools are made up of platforms that integrate multiple systems
and sources of asset data, and dedicated asset analytics that sit on top. Broadly,
applications include monitoring physical assets, optimized maintenance scheduling,
field information tools, machine health and failure prediction, asset modeling, and
asset tracking.
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• Customer operations: Use cases that support utility billing, CISs, and customer
service and call center operations. Specific applications include meter data analytics,
theft/fraud detection, pricing optimization, credit/collections, and call center support
and resource optimization.
• Demand side management (DSM): Applications include DSM program management,
load disaggregation, customer segmentation, pricing and DER programs (for energy
efficiency, DR, energy storage and distributed generation), geo-targeting for grid-edge
solutions, DER load forecasting, and demand analytics.
• Grid operations: Applications in this category include outage detection and
prevention, damage assessment, system modeling, power quality optimization, real-
time network operations and grid balancing, distributed energy resources (DER)
integration, state estimation, advanced metering infrastructure (AMI) network
visualization, meter connectivity, outage notification, root cause analysis, and damage
assessment.
2.5 Energy Cybersecurity Overview

The common theme in smart grid projects is the use of connectivity and modern IT
solutions to make the grid more flexible and responsive in real time. Each new instance of
connected IT systems requires a corresponding cybersecurity component to protect it. This
report examines cybersecurity investment in four utility segments:
• AMI: AMI systems include the smart meters themselves, the utility headend (where all
data is collected), and the various modes of network communications required to
collect smart metering data to transmit it to the headend. Systems that are on the other
side of the headend, such as MDMSs, are not part of an AMI system.
• Distribution automation (DA): Security for distribution grids must protect the devices
and the communications, and also ensure that the data from those devices are
reliable, available when needed, and kept with integrity. As with transmission grids, the
introduction of automation into distribution grids demands a number of controls that
were not necessary with mechanical devices.
• Substation automation (SA): Substations are becoming distributed nerve centers of
the smart grid. Just as they have been convergence points for power, linking T&D
networks, they are now convergence points for communications, such as backhaul, to
a central site, and to the meter. Substations themselves contain a number of devices
that can benefit from improved monitoring and real-time control. Some utilities store
data at substations until it is needed at a central site, if ever.
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• Transmission upgrades: Transmission grids contain some of the most expensive

assets in a smart grid (high voltage direct current, HVAC), and failure of a single
transmission asset can have a sweeping effect on a grid. While these networks have
traditionally received significant security investment, they are by no means secure and
the introduction of new technologies, such as phasor measurement units (PMUs) and
dynamic line rating, means that new attack surfaces are continuing to emerge.
2.6 Market Drivers

There are a number of market drivers behind utility IT and cybersecurity investment. In
addition, many business (customer experience [CX], cybersecurity), technology
(modularity, managed services), and operational (data proliferation, DER integration)
variables are galvanizing growth across this already massive market.
2.6.1 Data Proliferation

The much-discussed energy transition is also a digital transformation. All the new products
and services that are currently being investigated by utilities are technology-based. New
connected devices produce new data on which new services rely. This massive growth in
data is leading to a revaluation of data management practices.
As automation, communications networks, and monitoring devices proliferate in the grid,

utility operations managers and executives have access to mountains of new data—on
consumption patterns, device health and stresses, power quality and stability metrics, etc.
Without sophisticated software and analytics solutions, utilities are unlikely to maximize the
returns on these large investments—both financial and operational. Longer term,
competitive pressures are likely to make these capabilities a necessity for all but the
smallest utilities. Consider the following effects of data proliferation on certain IT markets:
• New business models require new IT infrastructure, which relies heavily on the
analysis of huge volumes of data. Electric utilities rely on the integration of existing
ADMSs and DERMSs to effectively manage these changing business and network
conditions.
• GIS networks are able to integrate and model disparate sources of data, using location
as a common language. Using ESRI’s Utility Network Model, GIS can become the
single source of truth and feed ADMS (distribution management system [DMS],
DERMS, EMS, OMS, SCADA) solutions.
• Data around customer interactions has become much more valuable in recent years,
incentivizing advanced CIS and CRM with multiple integration points (e.g., MDMS,
MWMS).
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• The transition into big data analytics has been a result of growing amounts of data,
primarily from smart meters (sensors and DER as well), a changing set of business
goals and environmental requirements for electric utilities, and advances in analytics
technology.
• Although core systems address certain data management challenges, the next
evolution in the data management space comes from the advancement of Internet of
Things (IoT) analytics platforms. These solutions include most functionality for the
process of analyzing data from connected devices: data acquisition, preparation,
cleansing, storage, integration, analysis, and the delivery of insights. Advanced
software systems can mitigate many of the challenges of data platform deployments
when compared with outdated or homegrown systems.
Significant value is locked away in this data, and so data is expected to soon become as
valuable to utilities as the commodities they provide. As a consequence, the utilities that
best manage data and invest in market-leading algorithms are anticipated to be much
better enabled to profit from their digitization investments. The industry is entering a period
of intense activity—a digital arms race—where utilities are not just developing products and
services, but also acquiring technology companies or technology-based service
companies. Utilities are competing with each other and other industries to gain access to
new technologies as new technologies help a utility monetize operational data by creating
new digital products and services, improve business process efficiency, and enhance
overall CX.
2.6.2 Increasing Competition

Electric utility deregulation is a growing trend globally, and many utilities are dealing with
competitive pressures. In addition, the rising penetration of solar panels and other DER is
giving both businesses and consumers the opportunity to drastically reduce reliance on
utility generated power. While few are likely to go entirely off the grid, the economics of the
utility industry stand to change markedly in coming decades. This change, in turn, is
prompting utilities—many for the first time—to pay closer attention to customer wants and
needs. The market for CX systems and applications (i.e., CIS, CRM, DSM analytics) that
use data from smart meters, social media, demographics, and other sources is rapidly
growing in response.
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2.6.3 System Modularity

Utilities are looking to modular solutions to accelerate the value proposition of IT
investment. As the need for a multitude of IT systems grows, implementation and
integration can become exponentially more challenging and expensive. Vendors are
responding by making their suites of systems highly interoperable and adopting modular
system architectures. This interoperability allows utilities to make their investments in a
stepped fashion with a clear path forward as they work to meet immediate needs and plan
for future requirements and competitive pressures. The following are a few examples:
• Many vendors and utilities consider ADMSs to be a combination of SCADA, a DMS,

and an OMS. This consideration has been expanded in recent years to include
DERMS, DRMS, and EMS modules.
• Multiple vendors offer modular asset management solutions under a modular
architecture, including AMS, APM, and MWMS solutions.
• Vendors such as Oracle (C2M offering) and Ferranti have incorporated MDMSs into
their CISs.
The risk, cost, integration complexities, and time to implement are all reduced by
interoperability, and standards bodies are also working to ensure that systems from
different vendors can be cobbled together without excessive customization. This makes
managers—and regulators—more willing to commit to IT system investments. Vendors are
also becoming more heavily involved in the integration of their systems, performing the
integration themselves or working closely with third-party systems integrators (SIs). In
doing so, the vendor assumes many of the costs and risks in the integration process and
ensures ongoing support for their systems.
This trend is leading a shift back toward single-vendor purchasing patterns. Traditionally,
utilities were less focused on systems integration and employed best-of-breed approaches.
What utilities failed to consider is the effect on the operator, the end users of these
systems. In almost all scenarios (and particularly during dark sky events), simplified user
interfaces (UIs) and single-pane-of-glass approaches are more effective and efficient
solutions. Modular, non-siloed systems help achieve these objectives. And with the
integration of DER and the influx of new, evolving datasets, the need for operational
simplicity is stronger than ever. For standalone vendors, this introduces challenges and a
higher need to differentiate from those vendors with more holistic portfolios.
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2.6.4 DER Integration

The proliferation of DER—solar, wind, EVs, energy storage, and DR—across the power
grid is expected to continue unabated for the foreseeable future. The need for DER
integration is expected to improve the case for medium and low voltage network
monitoring, as power balancing can become an issue with even a small amount of
distributed renewable power present. Utilities need to confront the instability caused by
momentary voltage sags and swells, capacity issues, and pole reversal.
So far, these challenges have largely been confined to utilities in high penetration areas,
such as the US (Pacific, Western, Carolinas), and Germany in Europe, though utilities in
newer markets are also starting to observe unstable conditions in the distribution network
as a result of distributed renewables.
This phenomenon is requiring utilities to gain better real-time situational awareness,

including real-time monitoring of distribution feeders connected to DER. Additionally, the
eventual establishment of transactive energy markets for distributed power and ancillary
services introduces another layer of complexity.
ADMSs can help mitigate the disruptive effects of DER. These systems have several built-
in capabilities to optimize grid management where DER penetration is high, but not at
levels that may warrant a modular or standalone DERMS. ADMSs are designed to provide
DER support on multiple levels, such as improving accuracy around forecasting, improved
capacity and resource planning, enhancing resource control, better reliability, and
supporting optimized use of distribution assets.
When active monitoring and control are required, virtual power plant (VPP) or DERMS
makes more sense. DERMS can respond to signals in real time and automatically initiate
control of grid and DER assets from the edge. ADMS are bound by the speed of the
communications network and its ability to process a high level of granular information
coming from the edge of the grid. Additionally, there is a lot of industry interest in DER
forecasting tools, which can be offered through an ADMS/DERMS, or a standalone
analytics package.
2.6.5 Managed Services

There is growing acceptance of software as a service (SaaS) purchase models for utilities.
While these solutions are initially of greatest interest to smaller, more financially
constrained utilities, even large utilities are likely to eventually move to a managed services
purchase model for their IT applications and analytics.
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A growing number of hosted and managed solutions have been made available recently.
This shift has been one of the more monumental industry shifts in recent years; while
CAPEX/OPEX considerations and security concerns have traditionally hindered the cloud-
based market, perceptions are rapidly changing. Along with a surge in interest from
utilities, major vendors are responding with cloud-first software strategies (e.g., GE,
Oracle).
According to a 2019 survey, 71% of utilities are using cloud software currently, with 64%
citing CX as the primary business driver. Utilities also cite the proliferation of new business
models (and need to remain relevant) and long-term profitability as key business drivers.
Utilities cite the proliferation of new business models (and need to remain relevant) and
long-term profitability as key business drivers. There are a number of value propositions
behind managed services models:
• Reduce risk: superior security and stability; allows for more frequent and easier
upgrade processes
• Maximize investment: easier ability to scale with “buy-as-you-grow” model

• Unlock innovation: allows for reallocation of human capital; use IT staff to focus on
innovation rather than core system management
For several years, SaaS-based, fully managed solutions have been popular for small public
and member-owned utilities that do not have resources for major smart grid capital
investments. For example, NISC has a strong foothold across the US cooperative market
as a provider of CIS as a service. Larger utilities have since warmed to services-oriented
solutions as a means to experiment with monitoring of downstream assets and even
customer-owned DER.
Analytics solutions lend themselves well to the SaaS purchase model. Under the SaaS
model, the utility avoids most of the large upfront capital costs of systems and integration,
instead paying a smaller monthly fee based on the number of endpoints from which data is
collected. Additionally, SaaS models help utilities avoid the cost of maintaining a large,
sophisticated team of IT professionals.
The size and structure of a utility has a substantial effect upon the market for IT systems.
Investor-owned utilities (IOUs) must receive rate case approval by regulators before
making large IT investments; these rate cases are typically on a 3-year schedule and thus
affect the timing of spend. On the other hand, smaller municipals and cooperatives are
often financially constrained. Managed services offerings are gaining market traction in
these cases, particularly for AMI/MDMS and CIS applications.
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2.6.6 Cybersecurity
The security of utility IT systems has been of growing concern to utilities, as recent reports
and incidents (Ukraine, WannaCry) have raised the awareness of inadequate security for
utility mission-critical systems. Utility cybersecurity has been underutilized and
underfunded to date, with a pervasive lack of education and awareness to the criticality of
the emerging threat landscape.
According to the 2019 Itron Resourcefulness Insight Report, 1 utilities ranked cyber attack
as their top disaster concern. The report also highlights a subset of best practices,
including creating a security culture, conducting regular self-assessments, timely reporting
of breaches, keeping a ransomware checklist and investing in military-grade security.
Vendors today place security at the core of application and environment development.
Major solutions providers, including Microsoft, Oracle, GE, and Siemens, have invested
heavily in their security offerings, offered as standalone solutions, or via embedded system
functionality.
Major concerns for the utility in regard to cybersecurity relate to the integrity of data used
for automated applications. Typically, encryption solutions are deployed to solve this
problem. This deployment can be difficult when the distribution grid is networked with a
combination of new and legacy devices. Additional costs to implement cybersecurity
standards can influence the decision to deploy new IT solutions.
2.6.7 CX
After years of passivity, regulators reacted to increasing customer concerns by taking a
customer-centric view of the world. The result has been a much stronger emphasis on CX.
Electric utility deregulation is a growing trend globally, and many utilities are now dealing
with competitive pressures. In addition, the rising penetration of solar panels and other
DER is giving both businesses and consumers the opportunity to drastically reduce their
reliance on utility generated power. While few are likely to go entirely off the grid, the
economics of the utility industry stand to change markedly in coming decades. This, in turn,
is prompting utilities—many for the first time ever—to pay closer attention to customers’
wants and needs. The market for CX systems and applications (e.g., CIS, CRM, DSM
analytics) that use data from smart meters, social media, demographics, and other sources
is rapidly growing in response.
1
Itron, 2019 Itron Resourcefulness Insight Report: Disaster Preparedness, 2019, www.itron.com/na/resources-
page/resourcefulness-report.
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2.7 Market Barriers

In spite of numerous factors supporting the market for energy IT solutions, there are
several barriers to more rapid deployment by utilities—not the least of which are cost and
complexity.
2.7.1 Cost and Complexity

IT system deployments require extensive product investments and integration efforts for
both software and communications, as well as organizational restructuring and human
capital investment. Naturally, many utilities are irresolute in determining whether the
potential benefits—and sometimes high costs—are worth the risk. Furthermore, in
regulated markets, utility investments are bound by regulators and rate cases. Many
regulators are coming up to speed with the more technical aspects of smart grid
deployments. However, it is challenging to convince regulators to allow rate increases for
multiple smart grid investment waves, particularly if an existing utility system is not
considered obsolete. Finally, for certain newer systems, there may be little actual field data
to support ROI calculations, which make both utility managers and regulators nervous
about large investments. The high cost and potential risk associated with major IT
implementations have resulted in slower uptake than previously anticipated.
2.7.2 Data Silos

Traditionally, many utilities have siloed the different segments of their businesses, resulting
in a non-integrated IT and OT solutions framework. Holistic asset management strategies
may be brought to life through the integration of multiple enterprise systems, including
ADMS, CIS, GIS, MWMS, OMS, and SCADA—these systems are traditionally spread
across operations, engineering, IT, and finance/accounting departments. In addition to
expensive and complex technology investments, reorganizational costs prevent many
utilities from integrating across departments
2.7.3 Data Quality

Data quality has been a major struggle for utilities. Few have employed data guardians to
oversee how data is stored across the company. Instead, responsibility is passed to
individual departments, which typically store data according to their own needs—and not
with a view to sharing around the enterprise.
Consequently, data can be stored multiple times in different formats and data can be
incomplete or missing—or out of date. To maximize the value and efficacy of IT resources,
high integrity data is critical. This necessity has hindered adoption of advanced
management solutions across the industry. Although this perceived risk has stunted the
growth of advanced IT solutions to date, there is a change in thinking underway that may
placate these challenges moving forward.
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Under this new line of thinking, determining if utilities should wait for perfect data to
implement advanced systems becomes a pressing question. According to multiple
vendors, the answer is increasingly no. While high fidelity data may be required to
maximize system value, it is not required to benefit from system deployment. Utilities have
historically seen poor data quality as an inhibitor but are now realizing that benefits can still
be achieved with lackluster datasets. Cost and efficiency savings can be achieved,
problems with the data can be isolated, and datasets can be improved in the meantime to
achieve marginal gains throughout the operation of the system.
On the emerging applications side, there is also a significant barrier around 3-dimensional
(3D) models. Vendor visualization solutions are moving to three dimensions; establishing a
geospatial architecture to handle this new data can be seen as a barrier. While many
utilities want to be in 3D, the question becomes if they have the ZED geometry to support
3D models and analysis. Moving beyond simple asset type, age, and model data is the
future; utilities now want to know where they are located (i.e., what is the ZED geometry on
the pole in relation to another asset). This capability is expected to ultimately enable future
modeling, so although it can be viewed as a limiting factor, it can more appropriately be
viewed as a different lens of analysis. Many utilities have not previously approached or
considered this data gap.
2.7.4 Communications Requirements

Communications requirements for utility IT systems are complex and can be high in cost,
given the number of automated devices and sensors that are expected to penetrate the
distribution grid within the next few years. For many systems, communications networks for
AMI, DA, and SA applications all need to be integrated. Utilities are fearful of hefty
integration fees and seek guarantees from vendors that their offering has proven plug-and-
play capabilities in terms of how it interfaces with the utility’s communications networks.
For mission-critical applications, utilities are particularly concerned with reliability for their
communications networks, especially during weather events, and low latencies are
required for many operational functions that must be performed in real time. In addition,
network security can also be of concern. These factors all add further cost to the effective
investment in multiple integrated systems.
2.7.5 Change Management

The concept of change management comes up frequently when speaking with industry
participants. To properly deploy advanced AMS/APM solutions, utilities must ensure that a
procedure is in place to manage changes. This includes budgeting sufficient time for
worker training, selecting a user-friendly system that is easy to integrate, and being aware
of individual capabilities in terms of existing systems and IT staff. Utilities that do not have
a detailed change management plan in place often struggle. Partnering or contracting with
third parties (e.g., SIs) can help mitigate this challenge.
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2.7.6 Regulatory Constraints

While regulation has been shown to increase investment around certain technologies
(smart metering, energy efficiency, grid modernization) and related IT solutions, regulatory
considerations can also hinder overall investment. This is particularly true in the US, where
the variable ability to capitalize on relative expenses has had a significant effect on the
investment environment.
In the US, most network owners make a profit on their owned, regulated asset base. As a
result, they make money on capital investments, while operating costs are just costs.
Therefore, there is a strong incentive to make capital investments in the network and
related infrastructure and a strong disincentive to increase OPEX.
This does not largely affect the Tier One IOU market, as these utilities traditionally opt for
hosted solutions, though it is does hinder opportunities at the cooperative- and public utility
level. Smaller utilities (e.g., municipals and cooperatives in North America or the German
Stadtwerke) are keen to transform their businesses, but do not have the huge balance
sheets of global rivals and lack internal skills to deploy transformational projects. These
companies are also driving the market for more flexible ownership. For example,
approximately half of Itron’s customers have adopted its SaaS-based meter data
management (MDM). However, this segment does not reflect half of Itron’s MDM revenue;
the vast majority of larger utilities still manage MDM on-premise. Larger, financially secure
utilities are moving the slowest. But as the market matures, an increasing number of large
utilities are likely to adopt flexible delivery, particularly for testing and development or
disaster recovery environments.
Many utilities cite regulatory or organizational barriers to cloud adoption, but as the market
evolves, the benefits of the SaaS model are becoming notable, particularly for smaller
utilities without large internal IT departments.
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Section 3
TECHNOLOGY ISSUES
3.1 Energy IT Systems
This Navigant Research report covers several core smart grid IT systems, as well as four
smart grid analytics application categories and cybersecurity. These solutions are defined
and their functionality described in the following sections.
3.1.1 ADMS
Many vendors and utilities consider ADMSs to be a combination of SCADA, a DMS, and
an OMS. This integrated architecture has grown in recent years to include EMS and
DERMS modules, though this is not universal across vendors. This growth is a natural
technological extension of ADMSs. The boundary between networks is becoming blurred,
and future network operators require access to both T&D applications. Navigant Research
believes that most systems available in the marketplace today qualify as ADMSs.
However, this description can be misleading due to the nature of energy IT and asset
replacement cycles as well as the segmented approaches to business and network
management. Because an ADMS conceptually includes many of the functions of the
distribution SCADA, it is natural to consider it fundamental to the system. In reality, many
utilities’ SCADA systems are not yet at the end of their useful life. Therefore, desired
ADMS upgrades require integration with these systems (as opposed to replacement).
Vendors typically offer an ADMS as a suite that includes a modular set of systems with
multiple licenses that can be purchased over time to facilitate gradual installation.
As the industry matures and homegrown systems reach the end of useful life, utilities are
expected to be in a much better position to manage their networks. From a human
standpoint, it is difficult to manage interfaces between homegrown and new ADMS
modules. For every ADMS upgrade (around 3 years), a whole new round of testing is
required and can dramatically increase the upgrade timeline. It introduces control room
inefficiencies (i.e., five different UI screens) that are mitigated with modular, integrated
solutions.
To operate a modern ADMS, the data requirements (level of fidelity) are far superior to that
of a traditional DMS. With the release of ESRIs Utility Network Model, GISs can now
maintain that level of data fidelity and feed the ADMS as a quasi-digital twin. This fidelity
allows utilities to maintain the operating state of the network with a single source of truth
and aims to dramatically improve the plague of poor connectivity models across the utility
industry.
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Although many utility IT solutions are offered as a hosted or managed service (i.e., SaaS),
ADMSs and DERMSs control critical functions that utilities are expected to keep in house
for the foreseeable future. However, some SaaS options are available and perceptions are
evolving, albeit slowly.
3.1.2 AMS
Advanced AMSs help utilities struggling to maintain a mix of legacy equipment and newer
intelligent devices by highlighting problem spots and providing management with
information on which assets reap the most immediate benefits, whether financially or in
terms of reliability. Additionally, AMSs support efficient management of assets by enabling
tighter interaction with workforce management systems and ERP systems. These systems,
which manage both day-to-day workforce operations and longer-term planning, can
optimize decision-making in these areas and provide access to more accurate and further-
reaching data on asset health and performance.
Holistic asset management strategies may be enabled by the integration of various other
enterprise systems, including ADMS, CIS, GIS, MDMS, OMS, and SCADA. Vendors are
responding with modular architectures. For example, ABB offers its modular Connected
Asset Lifecycle solution (AMS, APM, and MWMS), enabling optimized field force
management and dispatching activities.
Several electric utility industry-specific applications are also enabled by the deployment of
AMS (and related APM analytics):
• DER integration: Without real-time monitoring of the medium voltage and low voltage
feeders connected to DER, power balancing can become an issue with even a small
amount of distributed renewable power present.
• Dynamic line rating: Active line monitoring or dynamic line rating can allow safety
margins to be reduced, creating increased circuit capacity without a reduction in safety
or reliability.
• FLISR: More granular data from sensors throughout the grid has the capability of
improving the accuracy and performance of FLISR applications.
• Non-technical losses (NTLs) prevention: Line sensors in the distribution network or
feeder meters can help utilities accurately identify where theft NTL is occurring.
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• Operating risk: There is immense value in being able to apply a data-based approach
to managing assets for cost and reliability, including asset prioritization, mobile
workforce optimization, and capital investment planning.
• Outage reporting: Some newer devices can monitor themselves while others can be
monitored by attaching voltage or current sensors on both sides of the device.
• Volt/VAR optimization (VVO) and conservation voltage reduction: With condition
monitoring, VVO can be done dynamically, making minute-to-minute adjustments
based on the real-time needs of the network.
Utilities have tended to focus asset management efforts on generation and transmission
assets to date. The cost and criticality of assets on these networks places a premium on
maximizing the lifespan and efficacy of this equipment. As utilities continue to expand their
visibility downstream into the distribution network, new market opportunities are arising to
model and manage a growing base of connected distribution-level devices.
The market for AMSs across developed markets is relatively mature, with the majority of
North American and European utilities maintaining a dedicated AMS or ERP. Across
developing markets, market penetration is more in the 25%-50% range, leaving ample
opportunity for respective suppliers. Additional information on AMSs can be found in the
Navigant Research report, Market Data: Asset Management and Performance
Management Systems. 2
3.1.3 CIS
Billing and CIS solutions represent one of the most complicated and expensive IT
applications needed by utilities. In addition, at many utilities today, CISs are out of date and
in need of upgrading to meet the needs of more demanding consumers and engaged
regulators.
Changes to the electric grid, especially growing amounts of demand management and
DER adoption, are transforming CIS requirements. Mirroring the larger trend of systems
integration, utilities are looking to integrate CISs with other enterprise systems, notably
MDMS. The implementation of transactive energy demands CIS solutions to integrate
flawlessly with operational systems for accurate settlement.
2
Navigant Research, Market Data: Utility Asset Management Systems and Analytics, 3Q 2019.
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As with ADMS, CIS has seen vendors move toward more modular architectures. Vendors
like Oracle and Ferranti have incorporated MDM capabilities into their CIS solutions,
offering integrated solutions with a singular technology stack. These systems have the
benefit of a singular UI, lower integration and maintenance fees, and higher customer
engagement capabilities. For example, Oracle’s C2M solution can reduce the size of a
utility’s technology stack by roughly 25% when compared with separate CISs and MDMSs.
Although cost is an obvious primary consideration, utilities are expected to be concerned

with system flexibility and ability to accommodate the growing complexities of the utility
billing and customer management environment. Utilities are looking to use unified, singular
technology stacks for CIS and CRM deployments. This use allows for native sharing of
data, similar to how applications on an iPhone use the same address book, photos, videos,
etc. Vendors benefit from strategically targeting multisystem opportunities and by
highlighting the benefits of this single-vendor approach. This concept has its detractors, as
some utility executives are frightened by the all-in approach.
Additionally, as utilities better understand their customer base, they need to develop
effective strategies to meet growing demand for a better digital experience. Web and
mobile tools have been a major source of spending over the past few years and have been
crucial to many utilities improving overall customer satisfaction. For success, these must
be tightly integrated with CIS and billing tools. This is challenging—if not impossible—with
legacy systems, driving interest in more agile upgrades and replacements.
Modern CISs have incorporated low level CRM capabilities into their systems, allowing
utilities to make do with a basic CRM toolset. While CRM as CIS implementations have
been seen in the market, these deployments have grown out of favor due to the complex
requirements of CISs and the rudimentary nature (no processes or calculations) of CRM.
There is a wide disparity in terms of off-the-shelf CIS use globally. In North America and
Western Europe, markets are relatively mature, and growth is expected to be slower than
in relatively unpenetrated markets such as Eastern Europe, Latin America, the Middle
East, and parts of Asia Pacific. Across these emerging markets, vendor opportunities have
been identified across Central Asia, Eastern Europe, and Central Africa in particular. A
detailed analysis of CISs is provided in the Navigant Research report, Market Data: Utility
Customer Information and Relationship Management Systems. 3
3
Navigant Research, Utility Customer Information and Relationship Management Systems, 1Q 2018
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3.1.4 CRM
The market for CRM systems is in a period of limbo at the moment. On the one hand,
increased focus on customer engagement and investment in customer experience
technologies has reemphasized the value of standalone CRM systems. At the same time,
solution alternatives (CIS as CRM, bolt-on applications) and flat utility revenue are limiting
near term market growth. These barriers are expected to subside over time as the number
of customer touch points continues to grow (email, text, social media) and customer
expectations intensify across new markets. Both of these trends incentivize higher level
CRM investments. Additionally, as SaaS models become more tenable among utility
decision makers, they are expected to bring new utilities and markets (typically smaller and
financially limited) to the table. One the leaders in this space, Salesforce, exclusively
employs a SaaS deployment model.
In terms of pricing, CRM systems tend to be much lower in cost than CISs given the fewer
needed integration points. However, if the utility is implementing CRM to compensate for a
less functional CIS, then it can become expensive. This approach is not recommended
given the complex requisites of modern CISs, most of which already come with built-in, low
level CRM capabilities.
3.1.5 DERMS
Several vendors have envisioned DERMSs to be the ultimate solution for utility operational
needs for DER, but few exist in the market today and no two are alike in how they support
designated use cases. These systems orchestrate both grid and DER assets to support
operational use cases. DERMSs require integration with operational control systems such
as SCADA and DMSs, although they do not necessarily require real-time exchanges for all
operations.
For this report, DRMSs have been incorporated into the DERMS forecasts. DRMS have
traditionally focused on applications around DR program enrollment, device tracking,
forecasting, dispatch, data communications, and settlement capabilities. DERMS have
traditionally fallen outside of this scope, given their inclusion of distributed generation (DG)
and energy storage technologies; this is no longer the case.
There is an increasing convergence of these traditionally disparate systems, with more

vendors taking an integrated perspective of the technology. For example, both Oracle and
Siemens DERM solutions take a holistic view of DER management, blending grid and
customer capabilities that allow utilities to not only model, manage, and dispatch DER but
also facilitate program enrollment and DR engagement.
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Some utilities would like to integrate DER management use cases into their centralized
DMSs, as opposed to adopting a separate DERMS solution. At a low level of DER
penetration—where minimal effects to the grid require little to no active monitoring
control—this can be done. When more active control and monitoring are required, a
distributed DERMS tool makes more sense, as it can respond to signals in real time and
automatically initiate control of grid and DER assets. A DMS is bound by the speed of the
communications network and its ability to process a high level of granular information
coming from the edge of the grid.
There are also certain markets that may use VPPs in the near term in lieu of full-fledged
DERMS. This is playing out in Australia, where VPPs have gained market traction to
manage behind-the-meter residential DER assets. With ADMS, blackouts and emerging
reliability and security risks are pushing Australia to move beyond VPPs to include
DERMSs. DERMS can stop grid issues from cascading up to the transmission system. The
tools embedded in a DERMS solution can solve grid problems in a more precise manner
through active power management and more aptly mirror the impending reality for DER
penetrated markets.
DERMSs control critical functions that utilities are expected to keep in house for the
foreseeable future. However, some SaaS options are available, and perceptions are
evolving, albeit slowly.
The market for DERMS remains nascent, but is set for a period of hypergrowth as pilot
projects advance into full deployment and emerging markets begin to take shape. North
America is leading the global market as utilities have finally advanced beyond pilot
projects. Europe and Asia Pacific are still developing, though high DER growth in the near
term is expected to galvanize DERMS and VPP investment across these two regions. Latin
America and the Middle East & Africa are slower to develop, though high growth is also
expected as DER penetration grows, and grid challenges are experienced toward the latter
half of the forecast period.
In terms of vendor landscape, some vendors, like Siemens, GE, and Lockheed Martin,
have chosen to build internal DERMS capabilities. Others, like ABB, have decided to
partner with smaller, more-specialized players (Enbala Power Networks).
Vendors typically employ per-substation pricing models, based on a percentage of the

base license fee. For example, one vendor cited a base license fee of approximately
$250,000-$500,000, with a per-substation fee of about 25% of this price. Other costs
include the standard annual maintenance fee (15%-20%). While some vendors may
employ a per-kilowatt pricing model, for the majority of enterprise deployments, per-
substation models are preferred.
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3.1.6 EMS
EMSs are used to monitor, control, and optimize the performance of the generation and
transmission system. These systems may provide the links to outside system operators
(e.g., energy markets) or links to the operational SCADA systems within the T&D network.
The market for EMS is being driven by the need to accommodate DER, manage new
generations of high voltage connections, and integrate with a more dynamic distribution
network. These developments are also blurring the boundary between EMSs and ADMSs,
at least at the smaller scale of operations.
EMS are being offered as an ADMS module, with vendors moving upstream in terms of
ADMS capabilities. This offering aligns with the best use practice of model consolidation
and operating off a single source of truth. It makes particular sense in North America, as
most T&D networks are owned and operated by a single entity.
Given the converging ADMS overlap, the market for standalone EMS is expected to
struggle across North America and Europe, with emerging markets still maintaining
penetration growth across standalone vendor systems. An increasing proportion of EMSs
are anticipated to be deployed under an ADMS procurement; the vendor landscape is
already responding with the addition of EMS modules within ADMS solution suites (e.g.,
GE, Schneider Electric).
3.1.7 GIS
The use of GISs has become fundamental to today’s power utility as a foundational,
system of record-based model for an array of IT systems.
Traditional GIS have employed geometric networks, though changing network and
business conditions are testing the capabilities of these models. ESRI recently launched its
Utility Network Model, which allows users to edit networks, and places a premium on data
management, systems integration, and mobile capabilities.
A GIS is typically used as the system of record for the designed connectivity model. One of
the biggest challenges for utilities is up-to-date connectivity models, including meter-to-
transformer and phase identification data. The enablement of WebGIS and mobile
capabilities is critical for model management, as it streamlines the data process for workers
in the field. Integration of GIS, MWMS, and CIS/ERP can dramatically improve operational
efficiencies and data management practices.
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The use of GIS is nearly ubiquitous across developed markets of North America, the
Middle East, and Western Europe, with ESRI holding a leading market share across the
globe. GE Smallworld is the other notable industry player, with a handful of smaller GIS
providers accounting for the rest of the market. There are also a handful of utilities that
continue to use homegrown solutions. Eastern Europe presents some vendor
opportunities, though to a lesser extent than Asia Pacific, Latin America, and Africa.
Mirroring many other technology markets, Asia Pacific is highly fragmented, with a mix of
highly developed markets (Australia, New Zealand), emerging markets (India), and
markets relying on homegrown solutions (Japan).
Cloud-based deployments of GIS remain geographically fragmented. While North

American utilities have become quite comfortable with hosting GIS in the cloud, there is still
reported skepticism around security and control across international markets.
Utilities are realizing the value of spatial data in nearly all facets of utility operations and
are looking at how they can use this data to enable real-time visibility into asset health,
outage information, mobile workforce needs, and a host of additional applications. Within
this new integrated framework, demand is growing for interoperable, mobile, and analytical
solutions that provide valuable insights and reduce operating costs.
3.1.8 MDMS
The primary function of MDMSs is support for a utility’s basic billing cycles, or the meter-to-
cash operations. Systems have been around for some time, supporting manually read or
automated meter reading data streams. However, the importance of MDMSs has grown
dramatically with the need to support near real-time (at least day-ahead) meter-based
information rather than monthly billing cycles. The MDMS provides some business
functions on its own and also acts as a bridge between metering data sources and back-
office or operations functions, such as billing, fraud prevention, and outage management.
MDMS vendors are adding additional capabilities to their offerings, such as data analytics
and consumer portals. Other vendors, specifically those with a broader suite of utility
applications, may choose to deliver a base MDMS that is excellent at receiving and
conditioning data from one or more AMI systems, and then create a metering data system
of record that is openly available to specialized utility applications from many vendors.
Several MDMS vendors are adopting both approaches.
Systems integration is critical for proper MDMS deployments. Utilities should consider
enterprise IT strategies when exploring MDM solutions. While CIS and GIS integrations are
top choice, given the cash-to-meter and spatial mapping considerations, MWMS is also an
area of increasing convergence. With the expansion of mobile capabilities out into the field,
the ability for field workers to remotely update datasets and feed that information back into
core systems brings about new operational efficiencies.
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Connectivity models are a driver behind the MDM market. These systems can be used to
maintain network connectivity models. For example, Landis+Gyr’s Gridstream MDMS
enables load mapping and stores non-billing data (voltage and amperage) to provide
granular visibility into grid infrastructure.
MDMS that ease data migration processes for utilities hold an advantage. Data migration is
a daunting challenge for utilities when deploying advanced software systems, including
ADMS, CIS, GIS, and MDMS, among others.
Many utilities are engaging third parties to manage their MDMSs. In response, numerous
AMI system vendors and third parties have launched managed services for MDMSs,
including Itron, AT&T, Landis+Gyr, and GE Digital Energy.
3.1.9 MWMS
The topic of mobile workforce management (MWM) is not new to utilities. During the past
20 years, the value of mobilizing a workforce with devices, services, and applications has
been established. Since not all utilities have adopted MWM technologies or deployed them
to full capability, however, there is ample opportunity for growth.
In some developing regions of the world, and even within some small utilities in developed
areas, the basic transition of moving from paper to digital via mobile devices is still in
progress. Elsewhere, new systems, capabilities, and devices are being explored that could
revolutionize the way utilities interact with workers and customers.
Vendors are providing highly interoperable, modular systems to accommodate a stepped

approach to deployment of IT systems and reduce integration complexity. Common
integration points for MWMSs include ADMSs, AMSs, automated vehicle location, CISs,
GIS, MDMSs, and OMSs.
These integrations are facilitating one of the major advancements in MWMSs, bringing
control room capabilities out to the field. With the expansion of WebGIS and mobile GIS
technologies, workers can now remotely update back-office systems from the field.
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In particular, vendors are incorporating MWMSs under their asset management umbrellas:
• ABB offers an end-to-end solution (modular AMS, APM, MWMS architecture) with its
Connected Asset Lifecycle Management product.
• Oracle Utilities asset management suite consists of its work and asset management
solution, which includes both AMS and APM capabilities. This solution set also
includes MWM and Field Service Cloud modules.
In some developing regions of the world, and even within some small utilities in developed
areas, the basic transition of moving from paper to digital via mobile devices is still in
progress. Elsewhere, new systems, capabilities, and devices are being explored that could
revolutionize the way in which utilities interact with their workers and their customers.
3.1.10 OMS
OMSs continue to evolve as more real-time data becomes available on the status of the
network and the network becomes more automated and more capable of self-healing.
Outage management is changing from an application that supports the response to
exceptional events to an integral part of the customer and network management systems.
It is expected to shift from being a reactive system to a more predictive and automated
system that helps coordinate utility resources to prevent or mitigate the effect of outage
events.
AMI and DA technologies now enable full instrumentation of the distribution network,
allowing automatic detection and even recovery from outages. Outages can be detected
through the correlation of smart meter data in an MDMS or through grid monitoring via a
DMS or SCADA solution. The integrated data can be analyzed to decide the likely cause
and location of the fault. Work orders can then be produced for maintenance teams (and
dispatched through MWMSs), so initial remediation can be carried out through operational
control of switches and circuit breakers. Customer calls are still taken, but inbound
information may also be provided by a wide range of channels from telephone response
systems to websites, text messaging, and social media.
As with EMS and SCADA, the increasing modularity of ADMS is leading to a stagnating
market for standalone OMS. The market is expected to show little to no growth across
North America and Europe, with emerging markets maintaining penetration growth across
standalone vendor systems. An increasing proportion of OMS is expected to be deployed
under an ADMS procurement; it is now standard for vendor ADMS solutions to offer OMS
modules.
3.1.11 SCADA
Traditional SCADA management systems provide the operator and control interfaces
within utility control rooms (and at larger substations) for the various controllers
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implemented throughout the grid, particularly at transmission substations. As the overall

automation of the grid increases through additional intelligence in the network and with
advanced applications, these functions are being integrated into ADMS or EMS
applications.
Historically, SCADA solutions have been widely used within the high voltage transmission
system, down to the substation where high voltage is stepped down to medium voltage.
The utility deployment of SCADA and the requisite connectivity are now extending to
distribution substations in order to improve visibility throughout the distribution network and
to support a variety of DA applications, such as FLISR or IVVC. Some vendors believe
SCADA is destined to reach all devices in the medium and low voltage networks. For now,
the clear trend is to extend SCADA to distribution substations.
Given the converging ADMS overlap, the market for standalone SCADA is expected to
struggle across North America and Europe, with emerging markets maintaining penetration
growth across standalone vendor systems. An increasing proportion of SCADA is
anticipated to be deployed under an ADMS procurement. It is now standard for vendor
ADMS solutions to offer SCADA modules.
3.1.12 Analytics
Applications for smart grid analytics come in many different forms, used by many different
operating segments within the utility. Navigant Research has broken up the landscape of
smart grid analytics into four key segments: APM, grid operations analytics, demand side
analytics, and customer analytics.
3.1.12.1 APM
With the emergence of APM technologies, utilities are using static AMS data in new ways
(e.g., systems integration, data analytics) to create actionable intelligence around asset life
cycle management. The concept of real-time APM, with visibility of assets throughout the
grid tied to sophisticated analytics with predictive capabilities, is revolutionary for electric
utilities. Asset life cycles and maintenance practices that have been in place for decades
are evolving to a condition-based system, enabling new levels of efficiency and reliability.
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Asset management tends to be one of the first areas where data analytics are applied in a
utility setting. The utility business is capital-intensive, and a fair portion of operating
expenditures are connected to asset management. Applying data analytics to this area
tops most utility lists, particularly once AMI gets deployed and becomes operational. Smart
meters can be considered sensors in the low voltage network, providing monitoring
capabilities at the grid edge and providing operations centers with information on voltage
and outages.
APM provides much of the insight for utilities seeking to develop condition-based and
predictive asset management strategies. Predictive maintenance analytics is a rapidly
growing field that promises to optimize both capital and operational expenses for utilities.
Condition-based analytics systems for assets are emerging that help operations personnel
see a failure before it happens, preventing outages and saving millions of dollars for the
utility industry. These benefits are in addition to decreasing the number of truck rolls by
limiting the need for scheduled asset maintenance.
While traditionally an exercise performed at the transmission level, energy companies are
moving efforts downstream into the distribution network for both technological (extension of
networking and communications) and strategic (need to reduce operating costs) reasons.
In terms of T&D spending, Navigant Research estimates approximately 70% of APM
spending is allocated to transmission assets today, though this is expected to drop to 55%-
60% over the next decade. While still nascent today, the business case around APM is
facilitating a high growth environment over the forecast period.
Although many utilities are interested in evolving their approach and tools for APM, market
penetration is relatively low. This leaves vendors with good technology and a strong market
vision hungry for opportunities to prove the success and ROI for their solutions in the field.
APM builds a bridge between software such as enterprise AMS, workforce management
systems, and other relevant sources of data that pertain to assets. Upon consolidating this
information, analytics can translate data into meaningful insights that cut costs and improve
safety and reliability of the power grid.
3.1.12.2 Grid Operations

Grid operations analytics is a broad field that includes use cases for grid management and
planning, system control, and outage management. Meter operations analytics have also
been grouped into this category. (This does not include meter analytics pertaining to
customer billing, energy efficiency, or DR.) These are applications in which utilities are
turning to data and analytics-based decision-making and implementing advanced
applications beyond those supported in DMSs, OMSs, and meter data management and
network management systems.
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Outage management is one of the first areas in which analytics is typically applied, given
the premium placed on reliability in terms of utility objectives. These solutions have evolved
around the notion of reliability-based outcomes: more accurate storm forecasting, proactive
crew and vegetation management, and integrated workflows.
Utilities have moved beyond simple outage analytics and are exploring advanced analytics
around data management, smart metering, and state estimation. For example, grid
analytics in relation to connectivity model improvements has gained traction in the past 2-3
years, including meter-to-transformer mapping and phase identification. For the most part,
this category of analytics is mission-critical and is commonly implemented in house—but
there has been growth in demand for cloud-based solutions.
3.1.12.3 DSM
Demand side analytics include applications for integrated DSM (energy efficiency and DR),
DER information, and load analysis. Solutions in this area lend themselves well to cloud-
hosted models, as the majority of data is collected from the demand side of the meter and
is not as sensitive as grid operations or billing data. Generally, these applications are not
mission-critical.
Demand side and customer operations analytics are treated differently because customer
operations analytics are practices associated with meter-to-cash processes within the
traditional utility and demand side analytics are focused on DER monitoring, DR programs,
and building performance management. To use a different term, these are all energy
services (more often than not offered in a competitive environment), rather than meter-to-
cash, which is related to energy supply.
3.1.12.4 Customer Operations

Customer service improvements are a strategic imperative for utilities around the world.
Competition is increasing in many liberalized markets, forcing utilities to improve customer
experience and retention, as well as develop new customer services beyond basic power
supply. However, customer experience improvements are not restricted to competitive
markets; regulators around the world are forcing utilities in monopoly markets to improve
the customer experience.
Many utilities are turning to analytics to help improve customer experience, and the market
is seeing diverse use cases that support utility billing, CISs, and customer service and call
center operations. Most utilities have installed expensive customer information and ERP
systems, but many are 15-20 years old and do not support advanced customer operations
functions. As a result, a market for CIS and ERP supplementary applications and analytics
has emerged to offer utilities advanced customer operations capabilities and cost savings
without having to rip and replace these expensive systems.
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Although customer operations are the smallest segment analyzed, demand side analytics
is a customer-focused practice and analyzes data from IoT devices installed behind the
meter. Many of these solutions—with the exception of billing—are currently being offered
as a cloud-hosted solution, or SaaS; acceptance for this model has been strong within
utilities.
3.1.13 Cybersecurity
Utility security practices must be proactive, secure by design, and employ defensive
strategies. There is a need to move beyond point-to-point solutions and establish native
interoperability and a common model to lower the cost of ownership and unlock valuable
outcomes.
Security is a convoluted value chain. Not only do applications need to be secure but also
utilities must maintain a secure environment; one without the other does little in terms of
protection. There is a core challenge for IT vendors in ensuring their systems work properly
with third-party antivirus and security solutions. Supply chain security is a key focus area
for market participants.
3.1.13.1 AMI
The security of smart meter data is a concern of utilities as new devices are deployed and
the market continues to mature. Security has always been at or near top of mind, but with a
growing number of smart meters in the field, increased consumer data access through
online and mobile devices, and possible third-party access to data, attack potential
increases. There are security standards in place for meter data, but industry stakeholders
have indicated a heightened awareness of the vulnerabilities and the need for proactive
plans if or when breaches occur.
Utilities would be wise to assume attacks on their smart meters are going to happen and
plan accordingly. Smart meters are weak endpoints in large networks, placed in locations
where attackers can take their time with developing approaches. Also, smart meters can
be purchased on the Internet so the attack approaches can be developed offline before
being tried inside the AMI system.
Vendors initially responded by providing encryption capabilities for the communications

links. However, vendors have recognized that key management is also required. This
realization led to the specification of robust public key exchange methods similar to those
used in the financial industry. Meter vendors are extending these capabilities across the
smart meter neighborhood area network as well as the home area network.
Security is one area where Internet Protocol (IP)-based system proponents often claim
superiority. Many IP-based systems in all industries have implemented robust security. IP,
however, is not inherently more or less secure than any other protocol; it provides perhaps
a broader set of industry tools from which to build a robust security regime.
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Although physical attacks are less likely given embedded protection mechanisms, there is
still potential for attack if the internal serial links lack sufficient protection and a common
protocol is employed. Software-based attacks are typically the crux of concern for vendors,
utilities, and government regulators.
Smart meters can theoretically be used to launch denial of service (DoS) attacks against
AMI systems. This was evidenced in the January 2016 issue of the Journal of Network and
Computer Applications, where the concept of a puppet attack, which is a DoS attack
propagated against smart meters using wireless mesh network, was introduced.
In worst case scenarios, cascading failures could possibly be created from compromised
meters that, in turn, cause upstream failures in distribution, transmission, and even
generation. However, such an attack would require quite a few protections be deactivated
in each grid.
Attacks against smart meters could be simply for energy theft, which is particularly frequent
factor in developing regions, or could be a means to gain entry to the AMI, or to the entire
utility smart grid. Defenses against such attacks should include resilience for the times
when attacks succeed, and network segmentation to prevent a single meter attack from
yielding widespread access to a utility’s enterprise and control networks. MDM applications
can identify other misuse, such as energy theft. Additionally, newer technologies such as
energy metering industrial control systems can help isolate energy theft events that may
slip past MDM applications. No matter what cybersecurity measures are deployed in an
AMI system, it is critical to base the deployments on a security architecture, which explains
how the cybersecurity elements interact to protect the AMI system.
3.1.13.2 DA
Distribution networks share similar cybersecurity issues as transmission, with the added
concern that distribution lines may be more easily accessible than high voltage
transmission lines. Therefore, distribution grid assets are more likely to be targeted by
physical or cyber attacks, as they are more plentiful and accessible.
As with transmission grids, the introduction of automation into distribution grids demands a
number of controls that were not necessary with mechanical devices. Low network latency
must be preserved and communications between endpoints and central sites should have
multiple available routings. Data integrity should be preserved and measured. Smaller
devices, such as pole-top transformers, are numerous and require endpoint protection.
Many transformers should also have a smart meter attached as a way of reconciling
individual meter readings with known neighborhood consumption. Utilities may also collect
power quality data from the meter registers to better manage distribution grids and AMI
more efficiently.
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3.1.13.3 SA
Because substations can be concentration points for smart grid communications, they must
have especially strong communications security. Often, several means for telecoms exist
to enter a substation (e.g., AMI, transmission, distribution, hotspots), coupled with a high
bandwidth circuit back to the utility’s central office. This circuit ideally should also be
backed up with a secondary routing of a different technology for use in disasters—perhaps
a cellular modem circuit backup or a high capacity landline.
Any level of automated control or processing at a substation should have extended

cybersecurity protection. For example, any system that can be accessed at a substation
should require multilevel, multifactor authentication to ensure that stealing a password is
not enough to gain access to the system.
Physical security issues at a substation are mainly concerned with ruggedness and
survivability in exposed conditions, whether it be exposure to weather extremes or to
external attackers. These physical vulnerabilities were highlighted in April 2013 following
an attack on one of the Pacific Gas and Electric Company (PG&E) transmission
substations. PG&E’s Metcalf substation was targeted by a series of gunshots outside of the
facility, destroying 17 transformers and leading to $15 million in damages. While the utility’s
management and control systems helped maintain power throughout the attack, this
incident shed light on under-discussed physical threats, and led to a $100 million
investment on the part of PG&E to shore up their substation security.
The architectural advantages of using an existing substation for many types of technology
convergence are offset by the physically exposed, often unstaffed, approach to
substations. As more and more technologies are added to substations, physical security
weaknesses become a greater consideration for utilities. Redundant cyber assets and
networking routing are a critical element in securing substations.
3.1.13.4 Transmission Networks

Transmission grids contain some of the most expensive assets in a smart grid, and failure
of a single transmission asset can have a sweeping effect on a grid. These networks have
traditionally and continue to receive most attention and concern among electric utilities.
Transmission grid security must focus on safety, reliability, and integrity of the transmission
networks. Security must be contextual and include an application-level understanding of
the data being stored and transmitted. Security capabilities that integrate traditional
infrastructure protection with control network awareness can do a better job of
understanding the status of a control network and flagging specific items for investigation
or response.
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Transmission grid upgrades use information technology and communications to pursue a

number of objectives. These include better use of generation assets, support of renewable
energy portfolios, preparation for demand growth, application of more predictive
capabilities (such as situational awareness), and replacement of older technology with
newer technology. Analytical capabilities in newer technology enable these objectives but
introducing more intelligent devices almost always introduces more risk at the same time.
Within the area of cybersecurity, little to no spending should be allocated to the tower or
wire procurements that account for a large chunk of overall transmission-level spending.
Vendors have reported particular interest around the security of PMUs. These networked
devices are driving a massive amount of data, and require advanced, integrated security
measures.
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Section 4
KEY INDUSTRY PLAYERS
4.1 ABB
ABB is a global leader in power and automation products aimed at utility and industrial
customers. Founded in 1988 and headquartered in Zurich, Switzerland, it operates in more
than 100 countries, reported annual revenue of $27.7 billion in 2018, and employs about
110,000 people over four divisions: Electrification, Industrial Automation, Robotics and
Discrete Automation, and Motion.
In December 2018, ABB announced the divestiture of 80% of its Power Grids division to
Hitachi for $6.4 billion in a deal that is expected to be finalized in early 2020. The deal is a
pivotal transition point in ABB’s shift toward prioritizing digital industries. Additional
specifics on exactly which product lines are included in the transaction have not been
released.
Along with this transition comes the enhanced focus on the ABB Ability platform. ABB’s
data platform is called Ability, a set of solutions that unify the company’s cross-industry
digital skills to connect disparate devices, systems, and services. The company does not
see Ability as a standalone platform, but rather as means of accelerating the use of
important applications that deliver value to customers seeking to improve operations.
Ability features more than 180 industrial solutions based on a cloud infrastructure. Ability
uses technologies from Microsoft Azure.
Designed to extend from device to edge to cloud and to scale from localized to
enterprisewide deployments, ABB Ability includes a suite of software platforms for DA and
grid management. ABB Ability product lines include ADMS, AMS, APM, DERMS, EMS,
MWMS, DERMS, OMS, SCADA, and others. These systems are all part of the Power
Grids unit included in the Hitachi divestiture. ABB Ability applications can be segmented
across its Ellipse and Network Manager X product offerings.
ABB has placed an increased emphasis on asset management with the launch of ABB
Ability Ellipse in 2018. This connected asset life cycle management solution integrates
AMS, APM, and MWMS technologies to enable holistic management of physical assets
across the entire asset life cycle. These systems can be deployed on-premise or under
SaaS agreements.
ABB Network Manager X is the company’s ADMS solution, and contains modules for
DERMS, EMS, OMS, and SCADA. This software suite also includes modules for
generation management systems and market management systems.
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The company has partnered with Microsoft and is in the process of transitioning its
analytics offerings to the cloud powered by Microsoft Azure platform. With the Azure
platform, ABB uses its expertise in both operational as well as information technology to
help its customers deliver on the promise of OT/IT convergence and connect siloed work
processes for improved efficiency and effectiveness.
new.abb.com
4.2 Indra
Indra, based in Madrid, Spain, is an IT solutions provider with a solution for the utility
sector. Indra bought Advanced Control Systems (ACS) in September 2018. The addition of
ACS to Indra’s portfolio provides Indra a combined IT and OT value proposition for the first
time. This extends Indra’s overall offering with an OT offering composed of real-time
software solutions such as SCADA, feeder automation, and DERMS.
ACS started as a private company in 1975, focused on a microprocessor-based remote

terminal unit. Shortly after, ACS migrated to full SCADA systems, focusing its strategy on
small cooperative and municipality utilities in the US. In the early 2000s, it started to
develop a full DMS solution and it added an OMS in 2007.
ACS benefits from Indra’s market presence. Indra and ACS previously had their own
DERMS solutions in the market. ACS focused on DERMS as an extension of its ADMS,
while Indra’s offered other capabilities, specifically an IoT platform to manage and optimize
DER assets in the grid.
www.acspower.com
4.3 AutoGrid Systems, Inc.

AutoGrid Systems, Inc. is a Redwood City, California-based software developer that
focuses on the energy sector, serving 35 customers on four continents. Since its founding
in 2011, the company has raised nearly $75 million in four rounds of funding. The
company’s focus is around DER integration and customer engagement. Core product lines
include AutoGrid Flex, AutoGrid Engage, and AutoGrid Energy Internet Platform (EIP).
AutoGrid’s Flex suite of applications includes DR optimization management system,

DERMS, and VPP, for the management and control of distributed and demand side energy
resources. These include DR and pricing programs, energy storage systems, combined
heating and power units, solar power systems, smart inverters, and EV chargers. The
applications incorporate machine learning and artificial intelligence (AI) algorithms to help
utility operators and other energy service providers predict, optimize, and control DER in
real time.
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AutoGrid’s Engage suite of applications includes Engage Residential and Engage C&I.
Engage Residential uses advanced customer segmentation for targeted marketing of utility
programs. Engage C&I is also centered around targeted marketing and can work with
complicated account hierarchies and enable personalized, omni-channel engagement with
commercial and industrial customers.
Underlying AutoGrid Flex and AutoGrid Engage is the company’s EIP. AutoGrid’s EIP
forms the foundation for a full suite of integrated DSM analytics applications for
management of distributed grid assets. These include behavioral DR program energy
storage optimizations, VPPs, EVs, EV charging infrastructure, distribution system
optimization, customer engagement, and predictive asset maintenance. The platform
provides data structures for these apps along with machine learning and AI algorithms to
help utility operators predict, optimize, and control DER in real time.
AutoGrid’s Predictive Controls is at the heart of EIP and provides the ability to forecast,
optimize, and control large portfolios of DR programs, energy storage systems, solar PV
systems, and other DER. Specifically within its AutoGrid DERMS application, it can provide
granular monitoring for DER, co-optimize DER for steerable output and storage, and
optimize inverter control for surgical dispatch. Its AutoGrid VPP application provides an
aggregation and market interface layer, economically optimizing DER dispatch according
to upstream and downstream operating parameters.
AutoGrid has deployed its system under different market structures in a wide variety of use
cases. It has also developed partnerships with leading vendors of complementary systems
and utilities, counting many of them as investors. AutoGrid has made a strategic intent to
scale its presence in Japan and other international markets.
www.auto-grid.com
4.4 C3.ai
Founded in 2009, Redwood City, California-based C3.ai is a software analytics firm that
targets its SaaS solutions at a number of industries. The privately held company is led by
former Oracle executive and Siebel Systems founder Tom Siebel. The company has gone
through a number of reinventions, from an initial focus on oil & gas to downstream energy,
and a series of name changes, from C3 Energy to C3 IoT to C3.ai.
C3.ai’s flagship offering is a platform as a service (PaaS) product designed for aggregating
enormous volumes of disparate data into a unified cloud image that is kept current in near
real time. The company applies advanced analytics, AI, and machine learning at scale and
develops applications that generate predictions and apply business rules to produce
specific recommended actions. The company also offers a suite of SaaS products that
operate on top of the PaaS platform. The objective is to enable enterprise customers to
fully harness AI and IoT for digital transformation.
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Underlying all of C3.ai’s applications is an analytics platform that integrates enterprise data
with third-party datasets. The platform is designed to scale to large volumes of data and
enable real-time data loading and deployment in a private or public cloud. C3.ai offers a
series of applications, including the following:
• Predictive maintenance
• Inventory optimization
• Energy management
• Anti-money laundering
• Fraud detection
• CRM
In addition to partnering with Amazon Web Services and its cloud offering, the company
announced a strategic partner deal with Microsoft in April 2018 in a bid to deliver a go-to-
market solution for scaling AI and IoT across enterprises. The companies plan to jointly
market and sell solutions that use Microsoft’s Azure cloud computing service.
www.c3IoT.com
4.5 Clevest Solutions Inc.

Clevest Solutions Inc., based in Richmond, British Columbia, Canada, and Plano, Texas, is
a provider of mobile software solutions exclusively for utilities focused on utility field
operations. The company was founded in 2002 around a small subset of MWM-meter
exchanges. According to Clevest, its solutions were used in 30 million smart meter
deployments across North America.
While the company initially targeted the cooperative and public utility market, it has
expanded its focus to IOUs after developing a larger breadth of offerings over the years. Its
set of capabilities has grown extensively and effectively touches anything that has to do
with smart grid assets. This list includes tasks such as deploying, maintaining, querying,
and tracking the mobile resources from workers to vehicles, and managing all different
types of work: outage tickets, service tickets, disconnects, reconnects, meter exchange,
instruction, locate, damage assessment, and more. With a suite of modules around MWM,
Clevest considers itself as an enterprise-grade mobility solutions provider.
The company maintains a single server with its enterprise-grade mobility platform, sitting
on an Oracle or SQL database. This platform has two clients: an office application
(WorkSpace) and a single mobile application (WorkBook) for workers in the field. These
two clients connect to a single platform server. All modules are license key or permission-
based and deploy on the server structure.
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Clevest recently closed an investment round with Energy Impact Partners, a group of Tier
One IOUs that invest in innovative technology providers in the utility space. Clevest has
gone after the IOU market and going upmarket in recent years. It has the most utility IOU
wins across the board in the MWM space in the last year. The company secured contracts
with SoCal Gas, FortisBC Gas, Memphis, City of Kitchener, FortisAlberta (pending), and
Tucson Electric. While the majority of Clevest’s customers are in North America, the
company maintains an international sales team and has some projects in countries
including Romania, the Caribbean, and New Zealand.
www.clevest.com
4.6 ESRI
ESRI, founded in 1969, is the undisputed market leader for industrial geospatial solutions.
Based in Redlands, California, this privately held company provides mapping software to
help firms understand and visualize data to make decisions based on the best information
and analysis. ESRI software is used by Fortune 500 companies, national and local
governments, public utilities, and tech startups around the world.
ESRI provides geospatial solutions to the electric utility industry through its ArcGIS
platform. Many of the integrated IT systems used by utilities today employ ESRI software
as their core editing and mapping foundational layer.
In 2019, ESRI released its Utility Network Model, which enables utilities to better model
future grid scenarios, including full modeling of terminals, complex switches, and neutral
connection. This solution is being positioned as a single platform that can integrate various
data sources and generate insights (via AI and machine learning) to manage the grid of the
future, with location as the common language.
Developed around global modeling standards (Common Information Model), Utility

Network works seamlessly with ADMS to enable a single source of the truth; GIS feeds the
ADMS model (which acts as a digital twin) to help utilities maintain its operating state of the
network. Applications include asset maintenance optimization, connectivity model
improvements, DER integration and forecasting, and capital expenditure planning.
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As part of this release, ArcPro replaced the geometric model of ArcMap, though ArcMap is
still available for existing users. ESRI is expecting most if not all of its customers to
migrate/update to this latest data model. ESRI describes its product architecture along
three dimensions:
• System of record: supplies complete data model (Utility Network); provides ease of
editing; expands connectivity capability; scales to any utility size
• System of engagement: consumes external web services; service-oriented

architecture that enables mobile capabilities and systems integration (e.g., CIS/ERP)
for field service visibility and situational awareness
• System of insights: features real-time business intelligence (BI) dashboards; includes
out-of-the box analysis; discovers patterns; integrates AI, AR, machine learning and
3D analytics
ESRI maintains the dominant market share across the utility GIS market. Nearly all North
American Tier One utilities use ESRI solutions, as well as the majority of Tier Two utilities.
ESRI maintains a global presence and uses a large partnership network to perform related
professional services.
www.esri.com
4.7 Fluentgrid Limited

Based in Visakhapatnam, Andhra Pradesh, India, Fluentgrid Limited provides smart energy
and smart city technology solutions as a turnkey SI. Founded in 1998, this public company
was founded in 1998 and serves over 40 million end users across five continents.
Fluentgrid’s flagship utility products are its CIS and MDM solutions. As of June 2018,
Fluentgrid CIS had been deployed at 28 utility companies serving over 39 million
consumers. These can be deployed on-premise or in the cloud, with typical cloud
implementation times running under 12 months. Related offerings include Fluentgrid
enterprise asset management, Fluentgrid CRM, Fluentgrid MWM, and Fluentgrid Insights
(analytics).
The company has a strong presence in India and is involved in multiple India Smart Grid
Forum pilot projects. It is also targeting areas of Europe and Central Africa for future
growth. The company cites its local partnership network as a key differentiator in terms of
project bidding, particularly across emerging markets.
www.fluentgrid.com
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4.8 General Electric

General Electric (GE), headquartered in Boston, Massachusetts, is a large multinational
engineering and technology provider that was founded in 1892. The company is active in a
broad spectrum of verticals, including aviation, power, healthcare, renewable energy,
transportation, and lighting. It employs approximately 313,000 people working in more than
170 countries. For 2018, GE reported annual revenue of $125.2 billion. In recent years, the
company has pivoted from an emphasis on manufacturing and hardware to a focus on its
prowess in software and analytics. In early 2019, GE announced the $21 billion divestiture
of its biopharmaceutical business to Danaher, leaving Aviation and Power as GE’s core
businesses.
In December 2018, GE announced the formation of a new entity, which encompasses the
entire GE Digital Portfolio and position itself as an industrial IoT software company. The
new company includes all of GE’s current industrial IoT products and software platforms,
which encompasses GE’s grid management platform—Predix. The new company is set to
be led by a new CEO, is expected to begin with $1.2 billion in revenue, and is to be given a
new name and brand in 2019. Other digital assets included in the new company are APM,
Historian, Operations Performance Management, GE Power Digital Power Services, GE
Automation, and Manufacturing Execution Systems. In January 2019, GE announced the
consolidation of energy business units, resulting in the expansion of GE Renewable energy
to include all of GE’s renewable energy product lines—grid solutions, solar, storage, wind,
and hydropower—under one group.
GE’s Predix data platform emphasizes real-time device and data monitoring that enables
customers to see what is happening with connected assets and take appropriate action as
warranted. Predix is built on Pivotal’s Cloud Foundry technology, which functions as an
open-source PaaS, and features important descriptive, predictive, and prescriptive
analytics capabilities. The platform’s architecture is designed to allow rapid development of
applications at scale, reducing time and costs for customers.
GE offers a DER-aware ADMS that includes DMS, SCADA, OMS, and DERMS modules.
GE’s ADMS software supports utilities journey’s toward predictive and autonomous
operations, and an optimized distribution grid. The solution spans and connects distribution
optimization, outage response, and DER orchestration.
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GE’s Smallworld Electric Office is a software application suite that provides geospatial
asset management for utilities to support electric network planning, design and analysis,
maintenance, and operations. Along with ESRI, GE maintains a large share of GIS
deployments worldwide. Smallworld Electric Office is a suite of data models, applications,
and integrations for other key electric industry products. Smallworld Electric is
predominately used by utilities on the distribution side, with ESRI maintaining the leading
share of the transmission market. GE provides geospatial solutions to electric utilities
around the globe, including North America, Europe, Latin America, Asia Pacific, and the
Middle East & Africa. While the majority of customers reside in Europe (500+), the
company also has a strong base in North America.
GE’s APM offering encompasses a three-tiered approach. This approach begins with asset
monitoring and understanding current asset health followed by developing more accurate
understanding around the reliability of critical assets and ultimately optimizing maintenance
based upon predetermined needs for reliability, performance, and cost management. In its
recent update of this product suite, it integrated advanced diagnostics for asset health, risk-
based and predictive analysis, and planning.
www.ge.com
4.9 Itron
Itron, based in Liberty Lake, Washington, was founded in 1977 with a focus on providing
meter reading automation systems. The company, which employs nearly 8,000 people, has
grown through acquisitions to be a leading industrial IoT company that is innovating the
way utilities and cities manage energy and water. To move its services more toward an
enterprise DERMS platform, Itron acquired Comverge and Silver Spring Networks in 2017
and 2018, respectively. Itron generated $2.4 billion in revenue in 2018.
By integrating the Comverge and Silver Spring Networks solutions into the Itron platform,
the company is utilizing the distinct legacies of all three firms to drive enhanced, outcomes-
based solutions for its utility clients. Itron’s Enterprise Edition MDM is one of the company’s
flagship IT products. This complements its holistic portfolio of end-to-end AMI solutions.
This provides utilities with an enterprisewide data management solution for interval,
register and event data for residential and C&I customers. This scalable and open-
architecture system can integrate with several utility billing and analysis systems. The
company manages data from more than 39 million meters across 92 energy and water
companies on six continents.
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Itron’s DERMS platform, IntelliSOURCE, is a mature product that supports some of the
largest utilities large scale demand response programs across North America. The DERMS
platform encompasses the entire program life cycle, beginning with program design and
moving into forecasting and simulation. From there, customer integrations begin across the
distributed software platform, and Itron completes monitoring and verification, providing
impact assessments to its utility clients. IntelliSOURCE, expanded since the integrations of
Itron, Comverge, and Silver Spring Networks, can use Itron networks to provide additional
measuring, monitoring and orchestration of DER assets, supporting utility customers’
objectives for grid optimization.
Itron’s analytic-based outcomes focus on grid reliability and safety through voltage
management, power reliability, transformer load management, high impedance
identification and outage detection. It offers analytics for distributed intelligence,
conservation, demand response, customer engagement, asset management, revenue
assurance, energy forecasting, and load research. Solutions can be hosted via the
Microsoft Azure Cloud. Itron’s product strategy is to deliver off-the-shelf solutions to limit
integration and configuration complexity, and lower overall cost to deploy. The company’s
smart grid solutions have been used by utility customers like National Grid, CenterPoint
Energy, San Diego Gas & Electric, and Southern California Edison.
www.itron.com
4.10 Landis+Gyr
Landis+Gyr (L+G), founded in 1896 in Zug, Switzerland, is a global provider of smart grid
meters/sensors and associated communications and software systems. The company had
revenue of approximately $1.74 billion in 2018. Owned by Toshiba from 2011 until 2017,
when it listed itself on the SIX Swiss Exchange, L+G operates in 30 countries across five
continents and employs around 5,600 people. L+G provides several smart meter and
communications products, as well as a suite of management software and analytics
packages. L+G acquired its MDM product suite via its purchase of Ecologic Analytics in
2012. In 2014, it acquired GRIDiant, a California-based distribution grid modeling and
analytics startup, to enhance its Gridstream product offerings.
As part of the Gridstream product suite, L+G has expanding its analytics capabilities to
include distribution and customer intelligence. These command and control real-time
operational analytics capabilities assist decision-making in reliability planning, asset
loading analysis, and asset placement, helping utilities decide where to deploy sensors,
storage, and other equipment. Analytics tools acquired in L+G’s GRIDiant deal work in
concert with DMS, OMS, and GIS. These tools can help utilities optimize the placement
and density of fault circuit indicators on devices and capacitor banks for help with DR,
distributed solar, and EV integration.
www.landisgyr.com
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4.11 Open Access Technology International

Open Access Technology International (OATI), based in Minneapolis, Minnesota, provides
software solutions for energy commerce and smart grid. Since 1995, the company has
provided solutions for more than 1,600 energy industry customers across North America.
The company’s roots are in connecting generation and transmission to wholesale energy
markets, SaaS, and cybersecurity, and it has aggressively targeted the market for DER
management.
In May 2016, OATI announced a strategic partnership with EnSync Energy Systems. OATI
and EnSync are integrating the EnSync Matrix Energy Management technology with
OATI’s GridControl and webSmartEnergy DERMS platform. The solution combines the
Matrix’s ability to prioritize and optimize electricity from the grid, DG, and energy storage
with the webSmartEnergy DERMS functionality to provide various grid services. These
include frequency response, regulation, reserves and shaping services, dispatchable
energy, capacity, and VVO capabilities. OATI and EnSync are currently offering an early
version of the solution to select utilities.
OATI and Kansas City Power and Light (KCP&L) completed testing of webDistribute,
OATI’s DERM solution as part of the KCP&L SmartGrid Demonstration Project, in 2012.
The webDistribute solution passed all acceptance criteria and allows KCP&L to use
customer-side resources to deal with distribution grid reliability and economic issues.
www.oati.com
4.12 Open Systems International, Inc.

Privately held Open Systems International, Inc. (OSI) was founded in 1992 and is based in
Medina, Minnesota. It is a leading supplier of CIM-compatible automation solutions for the
real-time management and optimization of complex production, transport, and delivery
networks for utilities in the electric, oil & gas, transport, and water industries.
OSI Spectra is the trademark for the company’s DMS product. The network model, state
estimation, load flow, and a topology/one-line graphical UI are included in the Spectra
eMap. OSI’s ADMS is built upon its Monarch platform, which couples its DMS with SCADA,
what the company considers to be the essential components of ADMSs. In addition, it
offers enhancing modules such as OMS, MWMS, SA, and switch order management,
enabling high level outage management tactics and advanced applications such as FLISR
and VVO.
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OSI aims to provide DMSs at a reasonable cost, offering base SCADA to DMS upgrades to
small utilities that align with each company’s OPEX budget. When an asset management
GIS is already in place, most small and midsize DMS upgrades are deployed in 6–9
months. OSI often partners with Oracle and others as a SCADA provider for larger
projects.
www.osii.com
4.13 Oracle
Oracle, headquartered in Redwood City, California, is an enterprise software and IT
company with revenue of $49.6 billion for the year ending March 31, 2019. It employs more
than 138,000 people globally. Oracle Utilities offers a full suite of IT solutions for utilities
related to customer care and engagement, metering, work and asset management, grid
and network management, and data analytics. These respective technology segments are
converging as Oracle advances a more unified, modular system architecture.
Within the context of this report, the company offers ADMS, AMS, CIS, CRM, DERMS,
EMS, MWMS, OMS, SCADA, and a number of analytics solutions. With a portfolio of
systems across billing, customer, and operations, Oracle maintains one of the widest
breadth of solutions among industry vendors. This allows Oracle to use its relationships
and modular architecture to sell additional technology. The following are some of Oracle’s
key utility offerings:
• Oracle is one of the leading CIS and CRM vendors globally, operating a significant
installed base of its flagship Customer Care & Billing solution. In 2017, Oracle also
launched its C2M solution, which integrates MDM and CIS capabilities into a modular
solution. According to Oracle, its C2M solution can reduce the size of a utility’s
technology stack by roughly 25% when compared with separate CISs and MDMSs.
• Oracle Utilities recently released a DERM module for its long-standing Network
Management System, which has AI and machine learning built in. This combined
solution is the result of an August 2019 partnership between Oracle (NMS) and
EnergyHub (Mercury DERMS). Oracle believes its product can help take data out of
silos and allow real-time modeling of utility networks to improve efficiency.
• Oracle takes a holistic view of its DERM module, targeting DERMS from a grid
management (ADMS) and customer (DRMS and Customer Solutions division) angle.
This supports the company’s continued integration of Oracle and Opower capabilities.
• Oracle Utilities asset management suite consists of its Work and Asset Management
solution, which includes both AMS and APM capabilities. This solution set also
includes Mobile Workforce Management and Field Service Cloud modules. The
solution mirrors an industry trend of increased integration across the asset and
workforce spaces.
45
• Oracle Utilities MDM gathers, processes, and stores all types of meter data to help
utilities deal with rising data volumes. Notable deployments include AEP, Exelon,
Public Service Company of Oklahoma, ACEA (Italy), and CLK Enerji (Turkey). The
company also offers meter data analytics solutions that can be overlaid with Oracle or
third-party MDM/headend systems.
• With the purchase of Opower in 2016, the company increased its customer data
capabilities, and offers the Oracle Utilities Opower Energy Efficiency cloud service. The
service has successful in helping utilities use their DSM programs with personalized
experiences for customers that can boost participation levels in utility energy efficiency
programs. Spanning more than 60 million households globally, Opower is the most
widely used customer engagement platform of record in the utility industry.
• Oracle’s broad portfolio of analytics products gives utilities a variety of options to

perform analytics in house, on the cloud, or fully outsourced to its data science team.
This portfolio was developed through a series of acquisitions and in-house
development.
• Oracle has made significant investments in its utility-specific application portfolio to
make it easier for its customers to perform analytics. The Oracle Utilities Analytics
Platform was developed to deliver analytics tools throughout Oracle’s application suite.
Oracle recognizes the connected operations within utilities and the disintegration of utility
silos. To this point, Oracle Utilities systems’ architecture is expected to facilitate easier
integration across operational and customer systems, enabling more efficient data sharing
and deeper insight generation.
www.oracle.com
4.14 OSIsoft
Founded in 1980, San Leandro, California-based OSIsoft delivers an enterprise
infrastructure for the management of time-series data. The company serves a broad set of
industries, including power, covering generation, transmission, regional transmission
organizations (RTOs) and ISOs, distribution, meter data aggregation, and trading. Given
that OSIsoft is focused on data infrastructure, its future success relies on a partnering
strategy. It has signed many partnerships with other vendors keen to link their products into
OSIsoft’s PI time-series database.
The PI System is a common infrastructure that is a single collection point for time-series
field data and a platform for layered analytical applications. PI is a market leader in many
industries. Historically, OSIsoft focused purely on storage and developing interconnectors
make PI accessible to third-party applications. However, the last few years has seen it
develop analytics software, adding analytics into the PI Asset Framework and its PI Vision
visualization tool.
46
For utilities that use the PI System in their smart grid deployments, the system collects,
historizes, analyzes, monitors, and makes grid data available to the entire company.
OSIsoft states that the system has been coupled with several large ADMS deployments,
increasing the accessibility of real-time system data for analysis, control applications, and
situational awareness across utility functional departments.
OSIsoft maintains strategic alliances with Microsoft, SAP, and Cisco to deliver its flagship
product, the PI System. From a data and events perspective, the PI System is the common
software infrastructure that is a single collection point for time-series field data and for
layered analytical applications.
According to OSIsoft, 100% of the ISOs and RTOs in North America already use the PI
System to monitor the backbone of the North American grid. OSIsoft has offices in almost
every region of the globe—including China and Russia—extensive partner relationships,
and strong alliances. Clients that are familiar with the PI System are starting to view smart
meter data as operational data and are finding added value when collectively analyzed with
other forms of operational data.
www.osisoft.com
4.15 SAP
SAP is a global provider of enterprise application software headquartered in Walldorf,
Germany. The company offers software for a wide range of industries, including finance,
human resources, manufacturing, marketing, sales, and supply chain. The company is best
known for its ERP software, but also provides many utility industry-specific solutions,
including billing and asset management. SAP reported revenue of $26.0 billion for 2018
and employs more than 96,000 people globally.
SAP has the highest market share for ERP in the utilities industry. Consequently, it is able
to use its relationships to sell additional technology. A decade ago, SAP was an application
vendor, but over the past 10 years it has pivoted into multiple other areas. While much of
this change was incremental, SAP’s HANA was transformative. HANA is an in-memory
database, and many of SAP’s major applications have been optimized to run on HANA
system. Many of SAP’s utility customers are running its applications on a HANA
environment; numerous—such as Enel and Stedin—are moving applications to the cloud.
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SAP’s IoT platform is part of SAP Leonardo. SAP Leonardo encompasses an extensive set
of capabilities to help customers rapidly innovate and solve the complex problems of
becoming digital. The capabilities include SAP Leonardo IoT, SAP Leonardo Machine
Learning, SAP Leonardo Analytics, SAP Leonardo Big Data, and SAP Leonardo
Blockchain. These capabilities are delivered mainly via the cloud (SAP Cloud Platform), but
the platform also integrates with SAP’s HANA database. The overall objective for SAP
Leonardo is to be an intelligent and open suite of applications that helps customers like
utilities innovate their processes as they solve problems and uncover valuable business
insights.
The SAP Bill-to-Cash for Utilities solution (formerly known as Customer Care and Service
for Utilities) supports the customer management and billing functions. SAP has also
invested in a framework for integrating AMI and billing/CIS solutions—the Meter Data
Unification and Synchronization (MDUS) function. MDUS is a common data taxonomy that
enables AMI data to pass seamlessly to SAP’s back-office applications, including its CIS.
All of the major MDM providers have created an MDUS interface that allows for easy
integration with Bill-to-Cash for Utilities.
SAP CRM can help utilities recognize the characteristics of their customers (for potential
load planning or DR/energy efficiency opportunities), create effective marketing and sales
campaigns, use content for enhanced scoring and predictive modeling, and integrate data
from disparate sources for real-time, contextual, intent-based marketing.
Intelligent Enterprise is SAP’s analytics go-to-market message. It articulates a strategy to

embed analytics in an end-to-end business process, so SAP’s applications can provide
predictive analytics in maintenance, finance, procurement, sales, billing, risk management,
and more. This strategy eschews traditional analytics processing—which requires data
extraction from a database, data preparation, and interrogation—with intelligence
embedded in applications.
The German firm’s position is strong in the US, where many of the largest utilities use its
solution. SAP’s position is even stronger in Europe, where many utilities use its ERP
solution. This strength lessens the integration challenge when utilities also implement an
SAP CIS.
www.sap.com
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4.16 SAS Institute Incorporated

Cary, North Carolina-based SAS Institute Incorporated, founded in 1976, provides BI and
analytics solutions and IT services across multiple industries. It is the largest privately-
owned software company in the world and is a market leader in analytics solutions. The
utilities sector is one of SAS’s strategic industries, and a key area of growth. SAS turns
analytics into action around the world with a complete suite of solutions across the entire
analytics process including data collection, visualization, and model management.
For utilities, the company offers an open analytics platform as well as focused solutions
across four functional areas: asset and operations, customer analytics, energy forecasting
and market operations, and shared corporate services. The grid analytics software, for
instance, is applied to asset reliability, distribution optimization and DER integration, smart
meter data, and predictive maintenance. The customer data software analyzes information
to provide insights into segmentation, campaign management, real-time digital
engagement, and DR programs. Beyond these functional areas, SAS offers many other
advanced analytics tools for utilities to use and optimize operations.
SAS is also investing in cybersecurity. According to the company, most security measures
are rules-based, but SAS is working on predictive analytics that use streaming of real-time
data to identify patterns and highlight security risks before a breach occurs. The SAS Event
Stream Processing (ESP) is an embeddable engine for in-stream data quality and analytics
that can be integrated into SAS solutions and other IoT applications. ESP can be deployed
in a utility’s operations center or on the grid’s edge. It is being employed for state
estimation and real-time applications like dissolved gas analysis and dynamic line rating.
Utilities are expected to see an increasing need for communication and control across the
digital grid as they integrate EVs, batteries, DR, and renewables.
SAS is a global market player in AI and advanced analytics and empowers organizations to
realize value from their IoT investment from edge to enterprise. SAS recently announced a
$1 billion investment in AI over the next 3 years. The investment is expected to focus on
R&D innovation, education initiatives addressing customer needs, and expert services to
optimize customer return on AI projects.
SAS has partnered with SAP to optimize analytical solutions for HANA. Solutions include a
Predictive Modeling Workbench, Energy Forecasting, Asset Performance Analytics, and
Marketing Optimization. SAS is actively investing in universities and the next generation of
power engineers and analysts to support predictive analytics. The company has endowed
the University of North Carolina at Charlotte Energy Production and Infrastructure Center
with SAS Energy Forecasting.
www.sas.com
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4.17 SparkCognition
SparkCognition is an Austin, Texas-based AI specialist, focused on infrastructure and
asset-intensive industries. Its primary product, SparkPredict, uses machine learning to
optimize asset operations. However, SparkCognition is not limited to asset management: it
has launched AI-based products to help improve cybersecurity (DeepArmor), a product
that uses AI to develop new algorithms (Darwin), and DeepNLP, a product that automates
data retrieval, classification, and text analytics. SparkCognition’s main areas of focus are
predictive maintenance, decision support, workflow automation, endpoint protection, and
process optimization.
www.sparkcognition.com
4.18 Schneider Electric

Schneider Electric is a leader in the digital transformation of energy management and
automation in homes, buildings, data centers, infrastructure, and industries. It also provides
integrated efficiency solutions, combining energy, automation, and software. With revenue
of €25.7 billion ($31.1 billion) for the 2018 fiscal year, Schneider’s 137,000 employees
serve customers in more than 100 countries, helping manage energy and processes.
Schneider Electric offers ADMS, DERMS, EMS, MWMS, OMS, SCADA, and a number of
analytics solutions. The following are some of the company’s key utility offerings:
• The company’s IoT platform is EcoStruxure. This platform features a set of tools and
digital orchestration capabilities that enable customers to connect devices, manage
data, conduct analysis, and then build applications and services to optimize business
processes. The platform is designed as an open and interoperable system that
combines elements of cloud computing, mobility, sensing, analytics, and cybersecurity
technologies.
• Schneider Electric was among the first developers of an ADMS solution, designing and
architecting its first version between 2006 and 2008. In total, the full suite includes a
DMS, OMS, SCADA, EMS, automated closed-loop applications such as FLISR and
VVO, MWM, and most recently applications for consumer-facing DSM and the
management of DG and microgrids. Schneider supports utility partners in adopting its
ADMS via a modular approach that allows for ample time to integrate solutions
individually on an as-needed basis.
• Schneider Electric has expanded its ADMS offering both upstream (EMS) and
downstream (DERMS) in recent years as modular architectures have become the
norm. Schneider Electric’s DERMS solution can serve as a standalone solution or be
embedded with existing ADMS to allow complete visualization of DER in the
distribution network in geographic, schematic, and substation internal views.
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• In May 2018, Schneider Electric announced an investment in AutoGrid, making

Schneider a major shareholder in the company. This transaction establishes a co-
innovation partnership that focuses on AI and machine learning solutions for DER.
• EcoStruxure Advanced Metering Operation (formerly Titanium) is used for AMI
operations and management. The company offers metering platforms deployment and
operation services and serves as the SI; Schneider Electric’s Conductor MDMS
integrates with the Titanium advanced headend. The company notes this system has
been popular across Europe and is typically deployed under a managed services
model.
• Schneider Electric has been providing analytics software and services for years. For
instance, analytics makes a significant contribution to its ADMS and DERMS products.
• Schneider Electric’s flagship geospatial offering, ArcFM, is based on the ESRI ArcGIS
platform and consists of a family of configurable models and a set of sophisticated
tools designed to provide an efficient asset management solution for electric utilities.
This solution provides utilities and telecoms with location-based applications for a host
of segments, including asset management, outage management, and work (design
and construction). The product sits on top of ArcGIS and provides data quality tools,
network management tools, and data productivity tools.
Schneider Electric began focusing on cybersecurity about 6-7 years ago, and investment
has largely been driven by both North American Electric Reliability Corporation (NERC)
Critical Infrastructure Protection (CIP) and International Electrotechnical Commission
cybersecurity standards. Like some of the other major smart grid solution vendors,
Schneider Electric views its approach to cybersecurity as holistic and cross-enterprise. It
sees cybersecurity not only as products and systems, but also as a matter of organization
and processes. The company is dedicated to a culture of cybersecurity at the corporate
level.
Schneider Electric also works to establish strong cybersecurity practices at the component
or product level, including penetration testing and threat monitoring. The company offers a
number of smart grid technologies that require embedded security, including its ADMS and
SA technologies. Beyond embedded component security, Schneider Electric also holds the
ability to deliver projects with security, including responsible project and access control
management. By maintaining this end-to-end approach to cybersecurity, Schneider Electric
can offer electric utilities secure products, people, and processes.
The company maintains key strategic relationships with Microsoft, IBM, OSIsoft, and ESRI.
Over half of Schneider Electric’s business is outside of Europe, and the company has
experienced significant growth in North America since 2003.
www.schneider-electric.us
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4.19 Siemens
Siemens, based in Munich, Germany, is a global technology provider positioned in the
electric power value chain by offering solutions for generation, T&D, smart grids, smart
cities, and energy efficiency. Siemens has 379,000 employees and reported revenue of
€83.0 billion ($91.3 billion) in fiscal year 2018.
Siemens Smart Infrastructure brings together energy systems and building technologies,
connecting both worlds in smarter ways. Intelligent control across the grid from high to low
voltage with according products, systems, software and services. . Within the context of
this report, the company offers ADMS, DERMS, EMS, MDMS, MWMS, OMS, SCADA, and
several analytics solutions.
The company’s IoT platform is MindSphere, a cloud-based, vendor-independent operating

system aimed at enterprise customers seeking to digitally transform their business
processes. MindSphere functions as a PaaS on which application development can take
place. It is available as either a public or private cloud, and the company plans to offer an
on-premise version in the future. EnergyIP is the energy domain specific extension to
MindSphere as platform.
The company’s Spectrum Power ADMS monitors, controls, and optimizes distribution
network operation to increase operators’ situational awareness and reduce reaction time.
This modular architecture includes DERMS, EMS, OMS, and SCADA capabilities.
Siemens offers its Decentralized Energy Management System—a core pillar for DERMS.
This solution can combine distributed power plants of any size into a VPP and is used
when deploying distributed generating units, storage systems, and loads. It takes a holistic
view of DERMS capabilities and can be enriched with leading grid simulation capability of
the PSS tool. Targeting DERMS from a grid management (ADMS), aggregation (VPPs),
and customer (DRMS and Customer Solutions division) angle gives the company a
competitive edge.
Siemens maintains two cybersecurity focus areas—product development and services.

Siemens’ primary business is focused around product development, so the company
strives to implement cybersecurity principles into all of the products. By integrating relevant
security controls such as system hardening, least privilege concepts and secure
communication (authentication/encryption) components into system-critical products, a
higher level of security is reached. The company also offers central access management
solutions for SCADA and grid networks that are interoperable within a multi-vendor
environment.
52
Siemens offers cybersecurity services to electric utilities, including security monitoring,

incident handling, and security patch management. Internally, the company performs
threat- and risk assessment for its own products and environments to find weak points and
adequately addresses them. There has been a particular focus over the past year on
training internal personnel and raising the bar on the company’s security culture. This
includes a curated security training curriculum, well established security best-practice
exchange platform, and companywide security governance to achieve and sustain an
overall higher level of security awareness and maturity.
The company’s roots are in the operational aspects of power networks, but it is focusing on
OT and IT integration in areas such as analytics, outage management, and asset
management. The company sees its knowledge of operational systems as a key element
in creating joined-up solutions that require an understanding of IT, the real-time operational
environment, and the underlying physics of energy supply.
www.siemens.com
4.20 Smarter Grid Solutions

Founded in 2008, Smarter Grid Solutions (SGS) specializes in distributed control
technology for managing distributed and renewable energy resources. Its key offering,
Active Network Management (ANM), is a DERMS that allows for integration and active
management of DER. Originally formed in Glasgow, UK, SGS entered the US market in
2014 and has a New York City office.
The platform collects and analyzes data coming from renewable generation sites, building
energy systems, and other grid-edge sources. That data is then fed to underlying grid
control systems, enabling real-time decisions based on the ups and downs of wind and
solar power coming onto the network. SGS states that it is the only DERMS solution to
feature fast-acting response, guaranteed time bounding, adequate fail safes, and
predictable operation.
In July 2019, SGS released ANM Strata 2.0, an advanced version of its DERMS software.
This updated iteration adopts a layered approach to DER management, helping maintain
consistent grid management while mitigating traditional data issues. Focusing on
modularity and scalability, the system facilitates easier integration processes with related
systems, and offer new tools around data analytics, visualization and application
programming interfaces (APIs).
53
This system is aimed at both near and far-term value propositions. Near term, positive
returns can be realized by deploying a range of control methods across multiple
timeframes to manage any type of DER. Longer term, ANM Strata 2.0 supports the
development of new business models and innovative customer propositions for the owners
and operators of DER. SGS has worked with utilities and energy companies inside the US
including Con Edison, New York State Electric and Gas, and Rochester Gas and Electric.
Outside the US it has worked with UK Power Networks.
www.smartergridsolutions.com
4.21 Survalent
Survalent Technology is a privately-owned company providing real-time smart grid
management systems for enabling visualization, optimization, and improved operations for
electric and water utilities. Headquartered in Mississauga, Ontario, Canada, the company
was founded in 1964 and specializes in the development of utility management systems.
The company has helped over 600 utilities globally in 32 countries deploy its flagship
SurvalentONE platform. According to Survalent, the company provides SCADA, OMS,
DMS, and SA solutions in an integrated ADMS platform, which enables utilities to
transform data into actionable intelligence. The company’s SA solution, Survalent
StationCentral, delivers advanced control and monitoring for enhanced network
performance and protection.
Historically, Survalent’s main market has been municipal utilities and cooperatives, but it is
also working with larger IOUs across North America, Mexico, and pockets of Asia Pacific. It
sees the smaller utility market as an underserved segment that is expected to adopt grid
management systems on an incremental basis. Survalent works strategically with these
organizations on longer-term roadmaps for modular, scalable implementation of an ADMS.
Survalent has seen recent success, with a number of cooperative-based ADMS

deployments, including Bluebonnet Electric, Fairfield Electric, Peninsula Light, Southern
Public Power District, and Volunteer Electric. Globally, Survalent has deployed large-scale
integrated SCADA, OMS, and DMS solutions, particularly in Asia Pacific and Latin America
utilities. The company also operates in the Middle East through a strategic JV.
www.survalent.com
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4.22 Spirae, LLC

Spirae, LLC, is based in Fort Collins, Colorado, and has been privately held since 2002. It
is a technology company that delivers scalable solutions for the integration of large-scale
renewables and DER, the development of local and wide area controls, energy service
platforms, and power system simulations.
One of the company’s products, Spirae Wave, serves as a DERMS platform for utilities
with high DER penetration. Spirae Wave also enables new business models for DER-
based energy services, grid operations optimization, peak load management, grid
decarbonization, and microgrid integration within distribution grids. Spirae Wave includes
standard DERMS capabilities such as network awareness, asset monitoring and control,
scheduling and dispatch, active and reactive power import and export control, voltage
control, constraint management, forecasting, resource valuation, and optimal DR. Spirae is
engaged in DER management projects with San Diego Gas & Electric and Green Mountain
Power.
www.spirae.com
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Section 5
MARKET FORECASTS
5.1 Introduction
The market for energy IT solutions is large and growing—in absolute terms and also as a
percentage of utilities’ top lines. The revenue potential for software and services is
expanding at a moderate pace in some cases (EMS, SCADA, OMS) and at a robust pace
in other cases (ADMS, AMS, DERMS, MDMS).
5.2 Forecast Methodology

In developing its forecasts, Navigant Research gathered pricing and penetration data, by
application and region, from utility IT system vendors, integrators, consultants, and utilities.
It then created a detailed bottom-up model that builds upon a range of infrastructure and
expected penetration metrics, by region, from 2019 to 2028. Specifically, Navigant
Research relied upon the following assumptions and methodology, on a regional basis, in
developing its outlook for the IT systems and analytics solutions included in this study:
• The outlook for smart meter deployment on a regional basis was used as a basis for
growth in the MDMS market. MDMS penetration levels of deployed smart meters were
estimated on a regional basis over the forecast horizon to determine the growth in the
market for MDMS software and services.
• Estimates for total electric meters and total substations and automated substations
worldwide were combined with system penetration estimates, by application and
region, to project the growth in the markets for respective energy IT and analytics
technologies.
• The outlook for ADMS and related modules (EMS, DERMS, OMS, SCADA) can be
convoluted given the incremental investment model. EMS, OMS, and SCADA
forecasts are reported for standalone systems; spending for these systems made
under an ADMS procurement are included in the ADMS forecast. DERMS forecasts
remain separate for this report, though are expected to be procured as a function of
ADMS deployments.
• The purchase price of each application per meter was applied to the relevant meter
forecast to estimate the size of the market for new software purchases for each
application. Additionally, the life cycle (in years) for solution upgrades and the relative
cost of upgrades versus new solutions were estimated to determine the amount of
annual software revenue generated by upgrades.
56
• The relevant ratio of integration and services costs to the per-meter solution cost was
applied to determine the market size of services associated with software purchases
and deployment. In most cases, integration and services costs equal or exceed the
cost of the actual software purchase.
• Annual maintenance fees for IT solutions range from 18% to 25% of the original
solution price. The maintenance fee by solution was calculated by application and
region based on the average installed base of application meters each year. Because
maintenance fees are perpetual and because the installed base of solutions is
expected to grow, ongoing maintenance fees for IT solutions are (and remain) a large
part of the overall market for utility IT software and services over the forecast period.
• The proportion of applications purchased as a managed service, or SaaS, was
estimated for each application and each region throughout the forecast period. SaaS
solutions are expected to grow in popularity as smaller utilities in more advanced
markets (North America and Europe) seek to deploy advanced technologies. In
emerging markets, SaaS solutions could possibly become even more popular later in
the decade, as the business model is proven and security concerns subside.
Combined with constrained budgets and a lack of sunken investments in owned
systems, some emerging markets may come to rely heavily upon SaaS solutions.
• Navigant Research’s cybersecurity forecasts are a derivative of its smart grid
technology forecasts. Navigant Research makes assumptions based on region and
segment as to the percentage of overall spending that is actually related to
cybersecurity. This percentage tends to range from approximately 3%-7% of smart grid
spending.
5.3 Market Forecast

The global market for energy IT and cybersecurity for software and services is projected to
reach approximately $18.2 billion in 2019 and surpass $19.4 billion in 2020. Navigant
Research expects the market to grow at a CAGR of 6.6% through 2028 to over $32.5
billion. On a cumulative basis, the smart grid IT and analytics software and services market
is expected to be worth nearly $247.3 billion over the next decade.
The energy IT market is led by sales in Asia Pacific, followed by Europe and North America
(to a lesser extent). Asia Pacific is anticipated to remain the largest market over the entire
forecast period; this market is buoyed by a disproportionately large customer base and is
expected to show the highest CAGR (7.9%) among global markets. Latin America and the
Middle East & Africa are projected to remain small as a percentage of the whole through
2028. However, priorities around smart metering, grid modernization, and loss and cost
reduction encourage moderate growth across areas of these markets that are still
developing.
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5.3.1 North America

In North America, the high penetration of smart meters has supported a relatively fast
adoption of IT solutions relative to other regions; this includes data management, billing,
and customer-oriented solutions. CIS is expected to show the highest revenue across the
forecast period; this is largely attributed to the disproportionally high system cost. Key
systems of growth include ADMS and DERMS, as utilities in this region move toward
modular control system architectures in lieu of standalone systems (EMS, SCADA, OMS).
Navigant Research expects total energy IT and cybersecurity spending in North America to
grow at a CAGR of 6.9% between 2019 and 2028, from $3.3 billion to more than
$6.0 billion.
Chart 5-1. Energy IT, Analytics, and Cybersecurity Revenue by Type, North America: 2019-2028
$7,000
IT
$6,000 Analytics
Cybersecurity
$5,000
($ Millions)
$4,000
$3,000
$2,000
$1,000
$-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
58
5.3.2 Europe
Europe remains a hotbed for the adoption of DER and smart meters. The region also
maintains the highest rates of SA globally. All of these factors contribute to a strong and
growing market for IT and related solutions.
The adoption of renewables has accelerated utility investments, particularly in Western

European countries with already high penetration rates. Meanwhile, nationwide smart
metering initiatives continue across UK, France, and the Netherlands, while Italy (Enel) is
already advancing its second-generation deployment. These initiatives help support the
market for a number of grid management (ADMS, OMS, MDMS, MWMS) and analytics
(grid operations, DSM, customer operations) solutions.
Regarding the relatively new extension of EMS modules within ADMS architectures,
vendors have reported strong interest among European operators, indicating a shift in
network management practices and a premium on modular ADMS architectures. Navigant
Research expects total energy IT and cybersecurity spending in Europe to grow at a
CAGR of 4.7% between 2019 and 2028, from $6.0 billion to more than $9 billion.
Chart 5-2. Energy IT, Analytics, and Cybersecurity Revenue by Type, Europe: 2019-2028
$10,000
IT
$9,000
Analytics
$8,000
Cybersecurity
$7,000
($ Millions)
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
59
5.3.3 Asia Pacific

Asia Pacific is a highly fragmented market. In terms of the regional giants, China is likely to
remain relatively restricted, while India is set to show significant growth and investment
over the next decade around smart metering, low level analytics, and basic grid
modernization technologies. It is worth noting that Indian distribution companies often
require significantly lower price points, often up to 50% of North American or European
technology prices.
In Southeast Asia, there are a number of opportunities for vendors across the customer
experience and grid management space. Aggressive countries such as Malaysia, Taiwan,
and Singapore, are expected to be somewhat offset by the slower developing markets
(Vietnam, Indonesia). Countries such as Japan and Korea present select opportunities,
though the propensity to develop internally or procure domestically remains. At the high
end, Australia is a particularly interesting market due to aggressive DER and
modernization initiatives. Navigant Research expects total energy IT and cybersecurity
spending in Asia Pacific to grow at a CAGR of 7.9% between 2019 and 2028, from
$6.1 billion to nearly $12.0 billion.
Chart 5-3. Energy IT, Analytics, and Cybersecurity Revenue by Type, Asia Pacific: 2019-2028
$14,000
IT
$12,000 Analytics
Cybersecurity
$10,000
($ Millions)
$8,000
$6,000
$4,000
$2,000
$-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
60
5.3.4 Latin America

Latin America is expected to continue to struggle in terms of overall revenue, though strong
growth is expected as multiple nationwide smart meter rollouts commence, technology
costs continue to fall, and uses cases are proven (e.g., theft [non-technical loss] reduction).
Although Mexico and Brazil have tended to be the center of the Latin American market,
countries such as Peru, Colombia, and Chile have all announced nationwide smart
metering initiatives. These initiatives create opportunities for not only MDM providers but
also a host of other IT and analytics providers that can maximize the value of these new
data streams. Navigant Research expects total energy IT and cybersecurity spending in
Latin America to grow at a CAGR of 7.2%, from $1.5 billion in 2019 to more than $2.7
billion in 2028.
Chart 5-4. Energy IT, Analytics, and Cybersecurity Revenue by Type, Latin America: 2019-2028
$3,000
IT
$2,500 Analytics
Cybersecurity
($ Millions)
$2,000
$1,500
$1,000
$500
$-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
61
5.3.5 Middle East & Africa

The Middle East & Africa will likely continue to present relatively low revenue over the
forecast period, though moderate to strong growth is expected. In the Middle East, a
number of smart metering (Turkey, Saudi Arabia, Iran) and DER initiatives present vendors
with select opportunities. Africa is anticipated to continue to struggle, though projects
across countries such as Egypt and South Africa are expected to help support regional
growth. Navigant Research expects total energy IT and cybersecurity spending in Middle
East & Africa to grow at a CAGR of 7.7%, from $1.4 billion in 2019 to $2.7 billion in 2028.
Chart 5-5. Energy IT, Analytics, and Cybersecurity Revenue by Type, Middle East & Africa:
2019-2028
$3,000
IT
$2,500 Analytics
Cybersecurity
($ Millions)
$2,000
$1,500
$1,000
$500
$-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
62
5.4 Conclusions and Recommendations

As utilities embrace energy grid IT systems and cybersecurity analytics, there are a
number of factors to consider. No two utilities are alike, and solutions vendors need to be
nimble to enable widespread adoption by utilities. Other important considerations for
utilities and vendors are included in this section.
5.4.1 Energy IT and Analytics

• Do not let poor data inhibit investment: Not all utilities are equipped with good asset
and connectivity data. Utilities have historically seen poor data quality as an inhibitor
but are realizing that benefits can still be achieved with lackluster datasets. This does
not need to be a stepped approach. Utilities can explore and deploy advanced asset,
billing, and grid management solutions while isolating and improving problem datasets.
• Establish strategy to improve data fidelity:
o Data mapping: Survey for datasets and formats across all relevant
divisions within each operating company.
o Data validation: Once all the key datasets have been identified, validate
the accuracy and consistency of formats from various sources. There also
might be missing data that needs to be added in. Corrections to the data
should be done at the source level so that correct data flows through to all
end users. The output of the system is only as good as the input.
o Long-term planning: Once the datasets have been catalogued and
cleansed/filled in, the utility, probably with help from its vendor, must
identify its current and future goals in terms of output and then ensure that
the necessary data is being collected.
• Explore cloud-based SaaS options: The emergence and uptake of cloud-based
SaaS options has been a radical shift for the industry. Concerns around security and
control were too much for the majority of utilities 5-10 years ago; these barriers have
dramatically subsided in response to better technologies and changing perceptions.
While grid management solutions are likely to remain in the hands of utilities, customer
and select operational applications should be explored through managed service
deployments. Utilities should consider the benefits of deploying hosted and managed
options, particularly as they seek to experiment with more complex use cases and
applications.
• Identify communication requirements: For some utilities, enhanced networking and
connectivity may be required as a function of asset management, DER integration, grid
modernization. While smart meter and DA networks are used in the near term, growing
requirements forces some utilities into the establishment of new, standalone networks.
63
• Recognize that usability is a huge challenge and concern: Utility employees may
be extremely averse to change in their work environment, even when new solutions
are user-friendly. Utilities are resolving this issue in a number of ways, such as
including employees in the design and implementation process and adopting a design
thinking methodology. Good user experience alone is not enough; solutions need to be
flexible in their configuration to enable alternative implementation and adoption
approaches.
• Take a holistic planning view: Utilities planning their IT system upgrades and
additions as they deploy smart grid technology should take a holistic view of the
enterprise rather than thinking of solutions as relevant only within legacy silos.
Enterprisewide planning with long-term views of where the utility wants to get to in
terms of its portfolio of IT applications should minimize integration and customization
headaches down the road.
• Demonstrate ROI and pricing competitiveness: Utilities remain focused on the
bottom line, particularly as they work to expand their infrastructure and invest in smart
grid technology. Vendors that can show tangible ROI benefits have an advantage.
• Offer flexible solutions: It is imperative for vendors to offer flexible, interoperable
solutions; in the electric utility industry, one size does not fit all. Therefore, vendors
should consider providing a variety of options, including applications support,
application integration, and deployment options.
• Fully integrate predictive analytics and IT/OT: Predictive analytics (also referred to
as just-in-time maintenance) is to many utilities the holy grail. Predictive analytics are
enabled through consolidation of real-time data from the grid, situational awareness,
and accurate modeling of assets and resources throughout the grid. This requires full
or nearly full integration of IT and OT systems, including ADMS, GIS, MDMS, and
MWMS.
64
5.4.2 Cybersecurity
• Look at the bigger picture: Multiple vendors cited a growing concern among utility
CEOs about looking at the bigger cybersecurity picture. With some utilities maintaining
50-60 different security solutions, this one-off, point-to-point approach is crippling
industry operations. Moving forward, utilities need to deploy more holistic, integrated,
and harmonious solutions that can address more of what the utility is doing. This may
also play out with higher usage of cloud-based services given resource constraints.
• Push toward risk-based management: Utilities are realizing the need to protect
distribution assets from cyber attacks. Weak endpoint protection can be a significant
vulnerability for utilities, particularly when deploying large volumes of low cost sensors,
such as smart meters. While NERC CIP provides a baseline solution set, this is
sometimes mistakenly accepted as a comprehensive security solution. Moving forward,
Navigant Research expects a push toward risk-based management in lieu of the
traditional compliance-based management.
• Improve data sharing practices: One of the most effective means of improving
overall grid cybersecurity is the sharing of incident information. Further work is needed
to help coordinate market player contributions, as well as the inherent cybersecurity
risks in data transfer. There are multiple ongoing initiatives within this arena:
o US Electricity Information Sharing and Analysis Center (E-ISAC)
o European Energy Information Sharing and Analysis Centre (EE-ISAC)
o Industrial Control Systems Computer Emergency Readiness Team (ICS-

CERT)
o Computer Security Incident Response Teams Networks
o Energy Emergencies Executive Committee Cybersecurity Task Group
(UK)
• Develop more strategic partnerships: Along the lines of enhanced information
sharing is the need for more industry partnerships and collaboration. Many small and
large solutions vendors are already using strategic partnerships to help highlight or
expand product and service offerings. As utilities for push for more integrated and
interoperable solutions, vendors must adapt accordingly. Partnerships can help ease
this transition.
• Shift from prevention to detection: Vendors have reported a transition among
utilities, which are now embracing threat detection systems in lieu of the traditional
prevention systems. Utilities are accepting that the prevention of all cyber incidents is
highly unlikely and maintaining an appropriate detection and response system may
provide more value, awareness, and education.
65
Section 6
ACRONYM AND ABBREVIATION LIST
ACS ....................................................................................................................... Advanced Control System
ADMS ........................................................................................ Advanced Distribution Management System
AI ..................................................................................................................................... Artificial Intelligence
AMI .............................................................................................................Advanced Metering Infrastructure
AMS..................................................................................................................... Asset Management System
ANM .................................................................................................................. Active Network Management
APM............................................................................................................ Asset Performance Management
BI ................................................................................................................................... Business Intelligence
CAGR ........................................................................................................... Compound Annual Growth Rate
CAPEX .............................................................................................................................Capital Expenditure
CIP ............................................................................................................... Critical Infrastructure Protection
CIS .................................................................................................................. Customer Information System
CRM ..................................................................................................... Customer Relationship Management
CX ................................................................................................................................ Customer Experience
DA .............................................................................................................................. Distribution Automation
DER ................................................................................................................. Distributed Energy Resources
DERM .......................................................................................... Distributed Energy Resource Management
DERMS ..........................................................................Distributed Energy Resource Management System
DG ............................................................................................................................... Distributed Generation
DMS ........................................................................................................... Distribution Management System
DoS ...................................................................................................................................... Denial of Service
DR .................................................................................................................................... Demand Response
66
DRMS ............................................................................................ Demand Response Management System
DSM .................................................................................................................... Demand Side Management
EE-ISAC ............................................................ European Energy Information Sharing and Analysis Centre
E-ISAC .....................................................................US Electricity Information Sharing and Analysis Center
EIP............................................................................................................................ Energy Internet Platform
EMS.................................................................................................................. Energy Management System
ERP ................................................................................................................. Enterprise Resource Planning
ESP ........................................................................................................................ Event Stream Processing
EV........................................................................................................................................... Electric Vehicle
FLISR .............................................................................. Fault, Location, Isolation, and Service Restoration
GE ......................................................................................................................................... General Electric
GIS ............................................................................................................... Geographic Information System
HVAC ............................................................................................ Heating, Ventilation, and Air Conditioning
ICS-CERT ............................................ Industrial Control Systems Computer Emergency Readiness Team
IoT ....................................................................................................................................... Internet of Things
IOU ............................................................................................................................... Investor-Owned Utility
IP ...........................................................................................................................................Internet Protocol
IT ............................................................................................................................... Information Technology
IVVC ........................................................................................ Integrated Volt/Volt-Ampere Reactive Control
KCP&L...............................................................................................................Kansas City Power and Light
L+G ...............................................................................................................................................Landis+Gyr
MDM ........................................................................................................................ Meter Data Management
MDMS ........................................................................................................ Meter Data Management System
MDUS ........................................................................................ Meter Data Unification and Synchronization
MWM ............................................................................................................. Mobile Workforce Management
67
MWMS.............................................................................................. Mobile Workforce Management System
NERC .................................................................................... North American Electric Reliability Corporation
NTL.............................................................................................................................. Non-Technical Losses
OATI .................................................................................................. Open Access Technology International
OMS ................................................................................................................. Outage Management System
OPEX ....................................................................................................................... Operational Expenditure
OSI ...............................................................................................................Open Systems International Inc.
OT ............................................................................................................................. Operational Technology
PaaS.............................................................................................................................. Platform as a Service
PG&E ....................................................................................................... Pacific Gas and Electric Company
PV...............................................................................................................................................Photovoltaics
ROI ................................................................................................................................Return on Investment
SA................................................................................................................................ Substation Automation
SaaS............................................................................................................................. Software as a Service
SCADA ........................................................................................ Supervisory, Control, and Data Acquisition
SGS .............................................................................................................................Smarter Grid Solutions
T&D ................................................................................................................. Transmission and Distribution
UI .............................................................................................................................................. User Interface
UK ......................................................................................................................................... United Kingdom
US ............................................................................................................................................. United States
Volt/VAR ................................................................................................................ Volt/Volt-Ampere Reactive
VPP .................................................................................................................................. Virtual Power Plant
VVO ............................................................................................................................. Volt/VAR Optimization
68
Section 7
TABLE OF CONTENTS
Section 1 ...................................................................................................................................................... 1
Executive Summary .................................................................................................................................... 1
1.1 Introduction.................................................................................................................................... 1
1.2 Report Scope ................................................................................................................................ 2
1.3 Global Forecast ............................................................................................................................. 3
Section 2 ...................................................................................................................................................... 4
Market Issues .............................................................................................................................................. 4
2.1 Introduction.................................................................................................................................... 4
2.2 Energy IT Systems Overview ........................................................................................................ 4
2.3 Energy IT Systems Market Outlook and Rank .............................................................................. 6
2.4 Energy Analytics Overview ........................................................................................................... 7
2.5 Energy Cybersecurity Overview .................................................................................................... 8
2.6 Market Drivers ............................................................................................................................... 9
2.6.1 Data Proliferation ..................................................................................................................... 9
2.6.2 Increasing Competition.......................................................................................................... 10
2.6.3 System Modularity ................................................................................................................. 11
2.6.4 DER Integration ..................................................................................................................... 12
2.6.5 Managed Services ................................................................................................................. 12
2.6.6 Cybersecurity......................................................................................................................... 14
2.6.7 CX .......................................................................................................................................... 14
2.7 Market Barriers ............................................................................................................................ 15
2.7.1 Cost and Complexity ............................................................................................................. 15
69
2.7.2 Data Silos .............................................................................................................................. 15
2.7.3 Data Quality ........................................................................................................................... 15
2.7.4 Communications Requirements ............................................................................................ 16
2.7.5 Change Management ............................................................................................................ 16
2.7.6 Regulatory Constraints .......................................................................................................... 17
Section 3 .................................................................................................................................................... 18
Technology Issues .................................................................................................................................... 18
3.1 Energy IT Systems ...................................................................................................................... 18
3.1.1 ADMS .................................................................................................................................... 18
3.1.2 AMS ....................................................................................................................................... 19
3.1.3 CIS ......................................................................................................................................... 20
3.1.4 CRM ...................................................................................................................................... 22
3.1.5 DERMS.................................................................................................................................. 22
3.1.6 EMS ....................................................................................................................................... 24
3.1.7 GIS ........................................................................................................................................ 24
3.1.8 MDMS.................................................................................................................................... 25
3.1.9 MWMS ................................................................................................................................... 26
3.1.10 OMS .................................................................................................................................. 27
3.1.11 SCADA .............................................................................................................................. 27
3.1.12 Analytics ............................................................................................................................ 28
3.1.12.1 APM .............................................................................................................................. 28
3.1.12.2 Grid Operations ............................................................................................................ 29
3.1.12.3 DSM .............................................................................................................................. 30
3.1.12.4 Customer Operations.................................................................................................... 30
3.1.13 Cybersecurity .................................................................................................................... 31
70
3.1.13.1 AMI................................................................................................................................ 31
3.1.13.2 DA ................................................................................................................................. 32
3.1.13.3 SA ................................................................................................................................. 33
3.1.13.4 Transmission Networks ................................................................................................ 33
Section 4 .................................................................................................................................................... 35
Key Industry Players................................................................................................................................. 35
4.1 ABB ............................................................................................................................................. 35
4.2 Indra ............................................................................................................................................ 36
4.3 AutoGrid Systems, Inc. ............................................................................................................... 36
4.4 C3.ai ............................................................................................................................................ 37
4.5 Clevest Solutions Inc. .................................................................................................................. 38
4.6 ESRI ............................................................................................................................................ 39
4.7 Fluentgrid Limited ........................................................................................................................ 40
4.8 General Electric ........................................................................................................................... 41
4.9 Itron ............................................................................................................................................. 42
4.10 Landis+Gyr .................................................................................................................................. 43
4.11 Open Access Technology International ...................................................................................... 44
4.12 Open Systems International, Inc. ................................................................................................ 44
4.13 Oracle .......................................................................................................................................... 45
4.14 OSIsoft ........................................................................................................................................ 46
4.15 SAP ............................................................................................................................................. 47
4.16 SAS Institute Incorporated .......................................................................................................... 49
4.17 SparkCognition ............................................................................................................................ 50
4.18 Schneider Electric ....................................................................................................................... 50
4.19 Siemens ...................................................................................................................................... 52
71
4.20 Smarter Grid Solutions ................................................................................................................ 53
4.21 Survalent ..................................................................................................................................... 54
4.22 Spirae, LLC ................................................................................................................................. 55
Section 5 .................................................................................................................................................... 56
Market Forecasts....................................................................................................................................... 56
5.1 Introduction.................................................................................................................................. 56
5.2 Forecast Methodology ................................................................................................................. 56
5.3 Market Forecast .......................................................................................................................... 57
5.3.1 North America........................................................................................................................ 58
5.3.2 Europe ................................................................................................................................... 59
5.3.3 Asia Pacific ............................................................................................................................ 60
5.3.4 Latin America......................................................................................................................... 61
5.3.5 Middle East & Africa .............................................................................................................. 62
5.4 Conclusions and Recommendations .......................................................................................... 63
5.4.1 Energy IT and Analytics ........................................................................................................ 63
5.4.2 Cybersecurity......................................................................................................................... 65
Section 6 .................................................................................................................................................... 66
Acronym and Abbreviation List ............................................................................................................... 66
Section 7 .................................................................................................................................................... 69
Table of Contents ...................................................................................................................................... 69
Section 8 .................................................................................................................................................... 74
Table of Charts and Figures..................................................................................................................... 74
Section 9 .................................................................................................................................................... 75
Scope of Study .......................................................................................................................................... 75
Sources and Methodology ....................................................................................................................... 75
72
Notes .......................................................................................................................................................... 76
73
Section 8
TABLE OF CHARTS AND FIGURES
Chart 1-1. Energy IT, Analytics, and Cybersecurity Revenue by Region, World Markets: 2019-2028 ... 3
Chart 5-1. Energy IT, Analytics, and Cybersecurity Revenue by Type, North America: 2019-2028 ..... 58
Chart 5-2. Energy IT, Analytics, and Cybersecurity Revenue by Type, Europe: 2019-2028 ................. 59
Chart 5-3. Energy IT, Analytics, and Cybersecurity Revenue by Type, Asia Pacific: 2019-2028 .......... 60
Chart 5-4. Energy IT, Analytics, and Cybersecurity Revenue by Type, Latin America: 2019-2028 ...... 61
Chart 5-5. Energy IT, Analytics, and Cybersecurity Revenue by Type, Middle East & Africa: 2019-2028
............................................................................................................................................... 62
Table 2-1. Energy IT System Rankings: Cumulative Global Investment and Growth Rate ..................... 7
74
Section 9
SCOPE OF STUDY
This Navigant Research report examines the global marketplace for energy IT and cybersecurity software
and services. The report outlines the drivers and barriers behind the growing market for energy IT and
cybersecurity solutions across global markets. The Technology Issues section takes a more detailed look
at the status of energy IT and cybersecurity deployment by region and technology. The report lists and
profiles market participants and provides details on market sizing for 2019 to 2028 segmented by region
and technology segments.
SOURCES AND METHODOLOGY

Navigant Research’s industry analysts use a variety of research sources in preparing Research Reports.
The key component of Navigant Research’s analysis is primary research gained from phone and in-
person interviews with industry leaders including executives, engineers, and marketing professionals.
Analysts are diligent in ensuring that they speak with representatives from every part of the value chain,
including but not limited to technology companies, utilities and other service providers, industry
associations, government agencies, and the investment community.
Additional analysis includes secondary research conducted by Navigant Research’s analysts and its staff
of research assistants. Where applicable, all secondary research sources are appropriately cited within
this report.
These primary and secondary research sources, combined with the analyst’s industry expertise, are
synthesized into the qualitative and quantitative analysis presented in Navigant Research’s reports. Great
care is taken in making sure that all analysis is well-supported by facts, but where the facts are unknown
and assumptions must be made, analysts document their assumptions and are prepared to explain their
methodology, both within the body of a report and in direct conversations with clients.
Navigant Research is a market research group whose goal is to present an objective, unbiased view of
market opportunities within its coverage areas. Navigant Research is not beholden to any special
interests and is thus able to offer clear, actionable advice to help clients succeed in the industry,
unfettered by technology hype, political agendas, or emotional factors that are inherent in cleantech
markets.
75
NOTES
CAGR refers to compound average annual growth rate, using the formula:
CAGR = (End Year Value ÷ Start Year Value)(1/steps) – 1.
CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are
given, the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given
as well.
Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments,
and sales are based on end-of-year figures unless otherwise noted. All values are expressed in year
2019 US dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.
76
Published 4Q 2019
©2019 Guidehouse Inc.

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Boulder, CO 80302 USA
Tel: +1.303.997.7609
http://www.navigantresearch.com
Navigant Consulting, Inc., n/k/a Guidehouse Inc. (Navigant), 4 has provided the information in this
publication for informational purposes only. The information has been obtained from sources believed to
be reliable; however, Navigant does not make any express or implied warranty or representation
concerning such information. Any market forecasts or predictions contained in the publication reflect
Navigant’s current expectations based on market data and trend analysis. Market predictions and
expectations are inherently uncertain and actual results may differ materially from those contained in the
publication. Navigant and its subsidiaries and affiliates hereby disclaim liability for any loss or damage
caused by errors or omissions in this publication.
Any reference to a specific commercial product, process, or service by trade name, trademark,
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Navigant.
This publication is intended for the sole and exclusive use of the original purchaser. No part of this
publication may be reproduced, stored in a retrieval system, distributed or transmitted in any form or by
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permission of Navigant Consulting, Inc., Chicago, Illinois, USA.
Government data and other data obtained from public sources found in this report are not protected by
copyright or intellectual property claims.
Note: Editing of this report was closed on December 9, 2019.
4
On October 11, 2019, Guidehouse LLP completed its previously announced acquisition of Navigant Consulting Inc. In the months
ahead, we will be working to integrate the Guidehouse and Navigant businesses. In furtherance of that effort, we recently renamed
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RESEARCH REPORT

Energy IT and Cybersecurity Overview

Underlying these technological drivers is a revaluation of the customer. Customers expect

Navigant Research, a Guidehouse company, expects IT systems and analytics to account

1.2 Report Scope

• Meter data management systems (MDMSs)

1.3 Global Forecast

(Source: Navigant Research)

2.2 Energy IT Systems Overview

• Advanced Distribution Management System (ADMS): An ADMS unifies operational

• Demand Response (DR) Management System (DRMS): A DRMS helps utilities

• Mobile Workforce Management System (MWMS): Utility MWMSs allow utilities to

• SCADA: SCADA refers to computer-based control systems used in a wide variety of

2.3 Energy IT Systems Market Outlook and Rank

2.4 Energy Analytics Overview

2.5 Energy Cybersecurity Overview

• Transmission upgrades: Transmission grids contain some of the most expensive

2.6 Market Drivers

2.6.1 Data Proliferation

As automation, communications networks, and monitoring devices proliferate in the grid,

2.6.2 Increasing Competition

2.6.3 System Modularity

• Many vendors and utilities consider ADMSs to be a combination of SCADA, a DMS,

2.6.4 DER Integration

This phenomenon is requiring utilities to gain better real-time situational awareness,

2.6.5 Managed Services

• Maximize investment: easier ability to scale with “buy-as-you-grow” model

2.7 Market Barriers

2.7.1 Cost and Complexity

2.7.2 Data Silos

2.7.3 Data Quality

2.7.4 Communications Requirements

2.7.5 Change Management

2.7.6 Regulatory Constraints

Although cost is an obvious primary consideration, utilities are expected to be concerned

There is an increasing convergence of these traditionally disparate systems, with more

Vendors typically employ per-substation pricing models, based on a percentage of the

Cloud-based deployments of GIS remain geographically fragmented. While North

Vendors are providing highly interoperable, modular systems to accommodate a stepped

implemented throughout the grid, particularly at transmission substations. As the overall

3.1.12.2 Grid Operations

3.1.12.4 Customer Operations

Vendors initially responded by providing encryption capabilities for the communications

Any level of automated control or processing at a substation should have extended

3.1.13.4 Transmission Networks

Transmission grid upgrades use information technology and communications to pursue a

ACS started as a private company in 1975, focused on a microprocessor-based remote

4.3 AutoGrid Systems, Inc.

AutoGrid’s Flex suite of applications includes DR optimization management system,

4.5 Clevest Solutions Inc.

Developed around global modeling standards (Common Information Model), Utility

• System of engagement: consumes external web services; service-oriented

4.7 Fluentgrid Limited

4.8 General Electric

4.11 Open Access Technology International

4.12 Open Systems International, Inc.

• Oracle’s broad portfolio of analytics products gives utilities a variety of options to

Intelligent Enterprise is SAP’s analytics go-to-market message. It articulates a strategy to

4.16 SAS Institute Incorporated

4.18 Schneider Electric

• In May 2018, Schneider Electric announced an investment in AutoGrid, making

The company’s IoT platform is MindSphere, a cloud-based, vendor-independent operating

Siemens maintains two cybersecurity focus areas—product development and services.

Siemens offers cybersecurity services to electric utilities, including security monitoring,