Electricity network pricing changes to drive utility ICT spending: IDC
- 30 November, 2012 14:27
ICT spending within the utility sector in Australia is forecast to grow by five-year compound annual growth rate of of 2.3 per cent to more than $1.9 billion in 2015, according to IDC's Utilities Market Forecast and Analysis report.
IDC Australia's vertical markets analyst, David So, said this growth is to be mainly driven by pressure from the federal government to amend the electricity network pricing rules.
“It’s going to be less towards capital expenditure – the formula would not be purely based on capital expenditure, which it is right now," he said. "It would encourage more operating expenditure or outsourcing, as opposed to [utility companies] doing everything by themselves.
“The more utility companies or the network distributors invest in the network the more revenue they generate. That’s why Prime Minister Julia Gillard said the utility companies right now are ‘gold-plating’ the networks because they are encouraged to invest in these networks even though they don’t require the bandwidth for these networks. But they do it anyway just to drive up revenue.”
Instead of increasing the capacity of the networks, So suggested ‘smart-plating’ the networks with technologies that control the distribution of electricity based on demand would help better regulate electricity prices.
He said this would encourage more investment in smart grids and smart meters, cloud computing and mobile applications to allow consumers to monitor their energy usage in real time.
“Once they change that policy I think there’s going to be more outsourcing of the ICT work, which means cloud computing will also be a major factor driving ICT spending. Cloud computing is based on an operating expenditure model, where you pay-as-you-go as opposed to [making an] investment in capital.”
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
Five trends affecting legal CIOs
CIO Roundtable: The changing face of security
Bitcoin malware count soars as cryptocurrency value climbs
Bouncing Back From CIO Unemployment
Union slams latest fibre-to-premise trial in Tasmania
Cloud-Based Mobile Device Security Streamlines Data Protection
Read this white paper to learn why cloud-based security offers superior protection that meets today’s requirements for identifying and preventing access to malicious sites and applications while reducing management complexity and IT staff time and effort. This whitepaper discusses: • Increased use of mobile devices and the associated risks • Ways to address security challenges • Benefits of cloud-based anti-malware solutions
Whitepaper: Preventing Data Loss Takes More Than MDM
You need to secure your BYOD devices—but MDM alone isn't enough to prevent data loss. Read this whitepaper—Data Loss Prevention: When MDM Is Not Enough—to learn how to combat MDM shortcomings. See how to add cross-platform security, implement protection policies, and address risks in consumer apps.
The Power of Transformational Knowledge
Apple saves $5 million a year on case and email deflection, while its agents find information 47 per cent faster than before they invested in something called Transformational Knowledge. In today’s consumer-empowered marketplace, you cannot afford negative customer experiences. However many companies lack the tools and processes required to empower their employees to deliver great customer experiences. In this whitepaper, we look at how to breakdown silos and deliver great customer experiences.