For decades, utilities have leaned on software to manage everything from outage response to customer billing. Many, in pursuit of tailored solutions or perceived cost savings, built their own home-grown applications. While these custom systems may have filled immediate needs, they’ve often become anchors holding utilities back in a rapidly evolving industry.
Now, utilities are waking up to the hidden costs and limitations of these bespoke systems. As customer expectations grow and regulatory pressures mount, the shift to commercial off-the-shelf (COTS) solutions is not just a trend—it’s a necessity. COTS offers scalability, cost savings, and customer value that home-grown systems simply can’t match.
The Hidden Costs of Home-Grown Systems
High Development and Maintenance Costs
Custom-built systems come with hefty upfront development costs, requiring specialized expertise. But the spending doesn’t stop there. As technologies advance and new challenges arise, these systems demand ongoing updates, fixes, and patches. Before long, the total cost of ownership balloons beyond what it would have taken to implement a robust COTS solution.
Lack of Scalability
Utilities today face challenges like integrating renewable energy, managing distributed energy resources, and meeting rising customer expectations. Unfortunately, many home-grown systems were built to solve problems of the past. Scaling these systems to meet today’s demands often requires extensive redevelopment—or worse, a complete rebuild to mirror the capabilities vendors offer with cloud solutions.
Knowledge Silos
Home-grown applications are frequently maintained by a small, specialized group. If those individuals leave, retire, or take on new roles, utilities face the risk of losing critical institutional knowledge. This fragility can lead to costly delays and inefficiencies.
Integration Bottlenecks
The modern utility landscape depends on interoperability—whether it’s IoT devices, advanced metering infrastructure, or grid management systems. Custom systems, built in isolation, often struggle to integrate with new tools and technologies, creating roadblocks that stifle innovation and progress.
Why COTS Delivers More Customer Value
Cost Efficiency
While implementing a COTS solution involves an upfront investment, the long-term savings are undeniable. Vendors spread the development and support costs across multiple clients, reducing individual utility expenses. Additionally, utilities save on in-house development resources, shifting the burden of maintenance and upgrades to the vendor.
Reliability Through Proven Performance
COTS software is battle-tested. It’s deployed in diverse environments, refined based on real-world feedback, and continually updated to stay ahead of industry trends. With this proven track record, utilities can trust that the software will perform when it matters most.
Seamless Integration
Modern COTS solutions are built with interoperability in mind, offering APIs, plug-and-play functionality, and out-of-the-box integration with popular platforms. This reduces deployment time and ensures smoother operations across interconnected systems.
Stronger Security Posture
In an era of rising cyber threats, utilities can’t afford to take shortcuts on security. COTS providers invest heavily in robust cybersecurity measures, compliance with industry standards, and regular updates to address vulnerabilities. For many utilities, this level of protection would be prohibitively expensive to replicate in-house.
Better Customer Experiences
COTS solutions prioritize usability, with intuitive interfaces and customer-centric design baked in. Whether it’s a customer portal that reduces call center volume or an outage map that delivers real-time updates, these systems improve the experience for employees and customers alike.
Real-World Wins for COTS
- A utility swaps its outdated, home-grown outage management system for a COTS platform, cutting response times and minimizing customer frustration.
- A COTS customer engagement tool boosts satisfaction scores while lowering operational costs by reducing inbound calls.
- A demand response program powered by a COTS solution scales effortlessly, accommodating increased participation without requiring custom development.
Addressing the Concerns
Utilities often hesitate to adopt COTS solutions due to misconceptions about customization, vendor lock-in, and cost. However:
- Customization: Many COTS systems offer modular architectures and custom plugins, enabling utilities to tailor solutions to their specific needs.
- Vendor Lock-In: Choosing vendors with open standards and robust documentation minimizes dependency risks.
- Cost: A comprehensive total cost of ownership (TCO) analysis often reveals that COTS is more affordable over time than maintaining a custom-built system.
The Time to Shift Is Now – DataCapable Can Help
The days of clinging to home-grown systems are numbered. While they might have served utilities in the past, their limitations are clear in today’s dynamic environment. COTS solutions offer a path forward, one that emphasizes efficiency, scalability, and customer value.
For utilities, the question is no longer whether to adopt COTS—it’s how soon they can make the switch. By embracing COTS, utilities can stay ahead of the curve, delivering the reliable, secure, and seamless experiences their customers expect.
It’s time to leave the past behind and look to a future built on commercial off-the-shelf solutions. The customer value they unlock is too significant to ignore.
About the Author: David Fay, CISSP
David spearheads business development and marketing initiatives at Datacapable, where he leverages his extensive expertise in developing critical security control strategies and tactical implementations tailored to the utility industry. With a broad background in leading, planning, and executing complex technology projects, David ensures that solutions align with and drive business objectives.
