This IDC Energy Insights report examines managed service offerings that have relevance to the challenges faced by the North American utility industry. This report is intended to help utilities navigate through the multitude of concepts and offerings that are being presented for utility consideration in today's market. Managed service offerings are categorized and classified in terms of market readiness of the offering. Utility smart grid, marketing, and IT professionals receive guidance on how to better engage vendors and reduce their risk exposure when considering managed services.
Jill Feblowitz, IDC Energy Insights VP, explains, "Multiple managed services are emerging into the market to serve the needs of utilities. The challenge is to make managed services a win-win proposition for utilities and the providers of services. Utilities must be able to see value in services, such as quick implementation and ability to manage risk of investment. At the same time, utilities need reliability of service and privacy of customer data. The vendors must be able to create a viable business in a relatively short period of time, taking advantage of lower-cost delivery methods such as cloud. Vendors also need to hit the right pricing arrangements, where little may be known about the cost of in-house services. IDC Energy Insights sees security services and AMI network services as sure bets for utilities now, with other services becoming established in the next three to five years."