“Cloud computing,”
class of services refers to computing resources
(software or hardware) delivered as a service via the Internet. Cloud services include the use of remote servers hosted on
the Internet for accessing applications and/or storing, managing and processing
data. Cloud computing offers a number of benefits. Foremost among these is the avoidance
of big capital expenditures. There is no need to buy software, or the servers,
racks and other hardware required to support it.
The utility simply pays
a “subscription” fee out of its operating budget. Plus, the vendor’s staff
manages the solution, so you are guaranteed expert monitoring and support
without additional labor costs. Early adoption of cloud computing confers other
advantages, too. Many of the applications needed for integrating renewables and
managing bi-directional energy flow are largely cloud based.
As distributed
generation becomes more common, utilities that adopt cloud computing will be
ahead of the curve. They can also work with smart grid vendors to develop
custom, cloud-based applications that address an array of needs –– from improving
grid reliability to load forecasting.
Cloud computing can raise concerns over service integrity
and reliability, data protection, and privacy. However, focusing on expert
vendors will mitigate risks, and enable you to reap potential benefits. Seek
vendors who deliver:
Visibility into their processes and controls
Plans for disaster
recovery and business continuity
Physical security
controls that are clear and auditable
Standards-compliant cyber security
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