Pipeline Publishing, Volume 7, Issue 7
This Month's Issue:
Carrier Ethernet Emerges
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The Coming Smart Grid
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At Austin Energy, which supplies power to one million homes and 41,000 businesses, CIO Andres Carvallo says that one of the biggest projects over the last few years has been “trying to streamline the IT architectures to be more flexible, while at the same time enhancing the customer service experience and increasing revenues by offering new services across the enterprise." Sound familiar?

OSS/BSS players are well situated to capitalize on the smart grid because they have services, software and systems in place to handle a wide variety of data management, customer experience management (CEM) and customer relationship management (CRM) problems that power cos will begin experiencing once the smart grid goes live. But with a new industry may come new problems.

It is hard to imagine the consequences of a coordinated cyber-attack on a nationally connected smart grid



grid comes on-line, more and more processes will be consolidated into few locations. In the worst case scenario, one concentrated cyber-attack threatens the entire power grid. All the players in the emerging field must be aware of, and proactively guard against, rapidly evolving cyber-threats. However, there may be one threat that is even harder for the fledgling smart grid to guard against; consumers.

Consumer Confidence? What Consumer Confidence?

In a recent poll by GE, 79 percent of Americans said they were unfamiliar


Hackers No Longer Just Killing the Music Industry

Over the last 18 months or so, Iran’s contentious nuclear program was crippled; not by a tuxedo-wearing James Bond-type secret agent, but by Stuxnet, a computer worm. Stuxnet may just be the most sophisticated computer worm ever designed; a worm that had to infiltrate very specific and heavily guarded computer systems, disrupt delicate nuclear machinery without destroying it (thus raising alarms), hide its existence then destroy itself after it had been discovered. It did all this and more, but here’s the kicker, it was targeting nuclear facilities that had no Internet connections.

It is hard to imagine the consequences of a coordinated cyber-attack on a nationally connected smart grid, and it is even harder to imagine a power co or OSS/BSS player that is capable of managing such threats. Currently, the power grid is relatively safe, as most power generation is local and distributed. Any one attack on an individual power station is unlikely to affect the national grid. As the smart


with the term “smart grid”. A quick Google search reveals a surprising amount of articles actively advocating against the deployment of the smart grid. Consumer complaints range from increased bills (the new meters are sometimes billed to the customer) to data-related privacy concerns. Companies, such as Texas based CenterPoint, casually mentioning the ability to cut a customer’s power in two hours if they do not pay their bill are not exactly helping the consumer confidence index. But there is still time to turn things around.

The benefits of the smart grid are too numerous, and the backing from major power cos and corporations too strong, for the technology to fail. If companies can effectively communicate the benefits to the consumer (lower bills, lower emissions, new technologies and services etc.) there is no limit to the growth potential. OSS/BSS players, with their years of experience with CEM and CRM, may be in a position to lead the way in growing consumer confidence. The only question that remains is; will they be ready?

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