Moving Core Utility Systems to SaaS: Lessons and Reflections

Over the years, I’ve watched the evolution of utility IT platforms up close, first as someone wrestling with on-premise CIS, billing, and CRM systems, and now as I help organizations chart their course toward SaaS. If you’re reading this in Energy Central’s Expert Member section, chances are you know the pressure points I’m talking about: staffing challenges, rising customer expectations, and the relentless need for agility.

Let’s be candid - this isn’t about chasing the latest tech trend. Today, moving core systems to SaaS is about ensuring business resilience. Recent industry data shows that 87% of utilities have active digital transformation initiatives, and 70% are already leveraging cloud for core operations. The real question, then, isn’t “if” you’ll move, but “when” and “how.”

Why More of Us Are Making the Shift

My own conviction has grown stronger with every transformation I’ve witnessed. SaaS delivers scalability - critical for handling seasonal peaks without over-investment. It allows us to deploy new rates and customer engagement programs rapidly, and it shifts us from unpredictable CapEx to more manageable OpEx. Security and compliance? The leading providers have this baked in, with certified, continuously updated platforms.

We’re seeing global cloud investment in energy and utilities projected to hit $15.5 billion this year, with SaaS alone forecast to grow to $18 billion by 2030. And for those of us already down this path, the results are tangible: 15 to 20% reductions in operational costs aren’t just theory, they’re being realized in real-world operations.

Addressing the Challenges Together

I talk to utility leaders around the world every week. We all see the potential, but let’s not pretend there aren’t challenges. Migrating decades of data, integrating legacy tech, and ensuring compliance can look daunting. Yet, recent advances mean technical migrations can often be achieved in months, not years, if we put the right change management processes in place.

Here’s a quick comparison I like to use in leadership discussions:

What I’m Hearing from My Peers

At Hansen, we support utilities and municipalities across the Americas and beyond. The leaders we work with who have shifted core CIS, billing, and CRM to SaaS tell us:

• Reduced disruption: No more “big bang” upgrades - changes are incremental and manageable.

• Personalized engagement: Cloud analytics let us anticipate what customers want before they even ask.

• Innovation readiness: AI customer engagement, standardized 3rd party integrations, better data consolidation become plug-and-play.

And it’s not just us. 65% of utilities now use cloud for data management, reporting greater agility and deeper insights.

Ask yourself, five years from now, will your customers thank you for staying on-premise, or for delivering services that keep pace with their lives?

Strategic Moves for Fellow Senior Leaders

Here’s what’s proven effective across the transformations I’ve witnessed and led:

• Start with outcomes: Anchor your strategy in service, margin, and agility goals.

• Choose modular, open platforms: Keep options open and avoid vendor lock-in.

• Invest early in change management: Start upskilling teams well before go-live.

• Phase your migration: Hybrid models can de-risk the process and keep operations smooth.

Ultimately, the hardest part isn’t the technology; it’s managing the cultural and operational transformation that comes with it. The winners won’t just be the first to move, but those who move with purpose and precision.

Let’s keep this conversation going. If you’ve been through this journey or are just starting, I’d love to hear your experiences and lessons learned. We’re all in this together - and our industry, our customers, and our teams will be better for it.