Should Utilities Embrace Cloud ?

Introduction: Cloud computing often referred as ‘cloud’ is a metaphor for delivery of hosted services like servers, storage, databases, networking, software applications, analytics and much more on a pay for use basis. In simple terms, an American utility can store its data, software applications, etc on servers/ data centers in say India or any other country in the world.

A question often asked is why should anyone procure such services rather than keeping their information assets within its own premises. Well the answer is, cloud services reduce costs drastically, gives unlimited data access at any time anyplace through desktops, laptops, tablets & smart phones, provides computation systems to analyze raw data, provides easy & cheaper data storage and moreover companies do not have to worry about maintaining their infrastructure rather can completely focus on their core businesses.

Utilities Data : Broadly, there are two categories of Utilities data i.e., Operational, Control & Critical infrastructure data and Non-operational data. Unlike other industries, utilities must maintain the highest level of security across their data. Because of the sensitivity of utilities data, concerns on using cloud technologies have been widespread. Few of the utilities concerns are listed below:

1.      A compromise or attack on such systems (SCADA) could destroy valuable and critical infrastructure and shut down power to large geographic areas. Such disaster could jeopardize the complete system and would take long time & significant investments to repair.

2.      Unauthorized access into real-time smart meter readings could help determine whether customers are at home, leaving their property vulnerable.

3.      A compromise in billing data could put customer credit card numbers and bank accounts at risk.

4.      Giving access to data anytime, anyplace and with any device through cloud apps would result in leakage of important data without any visibility, audit or control.

5.      If the cloud provider goes out of business or is acquired by another company, utility’s data can be compromised or lost.

6.       In some countries, there are strict regulations on data handling which includes data not moving out of specified regions. Utilities fear that cloud necessarily has to take the data out of the region.

7.      In some cases, utilities have the impression that by storing data outside of a company’s premises/ servers and infrastructure it no longer will have the control over data. Company must rely on the cloud provider to make sure that data is available to employees and protected against the latest threats.

It is the known fact that data is growing exponentially and technologies that used to last decades are now becoming obsolete in months. The cloud is the answer to this conundrum. Utilities are no longer required to invest substantial funds to upgrade and replace their legacy systems with in-house solutions. However, data security is the primary concern for utilities using a cloud-based system.

Security: Many of the utilities claim that cloud is less secure. To them my question is, “Less secure than what? How secure are you today and how do you know? How do you measure the level of security?

Cloud technologies today have completely adopted ISO/IEC 27018 standards, to protect critical information in the Utilities industry. There are different levels and measures of security being placed by various cloud service providers like Amazon Web Services, Microsoft Azure, Oracle, Google, etc. Cloud service providers are using both logical (authorization, authentication, encryption & passwords) and physical (restricted access & locks on server, storage & networking cabinets, etc) for protecting utilities from any loss. In some cases data is encrypted twice, before and during transmission.

Future: Few of the agile and forward-thinking utilities have already started to leverage the power, flexibility and lower costs benefits that cloud services can provide to build new business models & products. Early adopters are migrating both operational and control data to the cloud because cloud providers have progressed security to meet even the most stringent requirements like those for Utilities. To conclude, the Cloud is surely the path for utilities to transform into a more nimble and flexible organization that can better adapt to today’s changing marketplace. However, utilities which are worried about region specific regulations can adopt a hybrid model made up of on premise and cloud based applications.

Disclaimer: The article is the independent opinion of the author and does not represent any organization