Rate recovery bias in cloud hosting vs. on-premise solutions needs to be removed. The disincentivized operating expense of a SaaS model vs traditional capital investment of an owned and developed asset is creating an unnecessary strategic bottleneck for the Utility Industry.
With the impact of increasing Cloud and SaaS trends offering advantages for both Utilities and their customer’s needs, it’s important that we change the way we think and structure agreements to offer flexibility for capital investment and rate recovery amortization going forward. New York and Illinois regulatory are leading the way, but more regulators should follow suit to help remove the stigma that pay as you go leasing creates for decision makers.
Changes in culture, accounting standards, regulatory, and vendor contract management will ensure that companies make the best decisions benefitting their customers, IT roadmaps, and operations. As opposed to convenience or limited budgets, improved scalability and services will move the energy industry forward. Finally, taking full advantage of emerging tech and SaaS.
Curious if anyone has any insights or experience as I'm heading the efforts for this.