Price Fluctuations and Geopolitical Instability, Energy Companies Are Obliged To Reinvent Themselves by Investing In ICT to Increase Efficiency: Ken Research
Posted on 23 February 2018 by KenResearch Energy and Utilities,
Energy sector (oil and gas companies) has been the biggest sector in terms of dollar value and it currently contributes a significant amount towards the national GDP of any country. However, plummeting oil prices and mounting climatic concerns have pushed the sector to look for advanced technological solutions in order to achieve sustainable growth. Report titled “ICT Investment Trends in the Energy Sector: Digital transformation and disruption will impact ICT investment strategies” discuss global market environment detailing Network and communications equipment, software licenses, application services, and network services are primarily attracting a major proportion of the budget allocations in their respective domains of hardware, software, IT services, and telecommunications.
Energy companies are also making considerable investments in data center facilities, network, and service desk functionality.
Expenditure on data center facilities is primarily driven by the requirement to devise better data storage, data recovery, and business continuity plans, while service desk functionality enable the integration of business processes into the service management infrastructure, to maintain the flow of business critical services.
IT investments relating to planning & project management are considered important, with the highest proportion of energy companies considering this business area as one of their top IT priorities.
Meanwhile, technologies such as Internet of Things (IoT) and cloud computing are finding pervasive adoption among energy companies who are increasingly deploying these disruptive forces of transformation to attain a competitive advantage in the sector. Therefore, ICT vendors offering products and services in these domains clearly have good growth opportunities in this market.
Cloud computing services are witnessing an increased interest from energy companies primarily driven by benefits such as higher scalability, flexibility, cost reduction, and superior business continuity capabilities. Most energy companies are prioritizing investment in platform as a service (SaaS) and private cloud in the coming two years.
IoT has emerged as the next disruptive technology segment. With benefits including reduced operational time and human intervention, IoT technologies such as auto ID & mobility technologies, supervisory control & data acquisition (SCADA), real-time location tracking, and security and network sensors are gaining popularity among energy companies.
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Ankur Gupta, Head Marketing & Communications