I already told you how Microsoft missed a $1 billion opportunity to take an early lead in the smart grid. And how Cisco has stepped in to start building the grid's first operating system. I recently spent time at the Microsoft Executive Briefing Center in Redmond to see where things stand now. I walked away with a much clearer view of Microsoft's smart grid strengths and weaknesses and of its vision for the Utility of the Future.
Microsoft smart grid strengths
Building partner networks. Microsoft knows better than anyone how to create the programs and tools to empower a global network of value-added partners. Even though it is playing catch-up, Microsoft could eventually end up with more “apps” in its “apps store” thanks to its partners.
Smart Energy Reference Architecture. Microsoft’s SERA is a thorough and comprehensive technical roadmap to a future-friendly IT infrastructure. In addition to its technical sophistication, I appreciate its migration model, which shows how utilities can move over time towards the ultimate system. And I appreciate that it starts with the vision of an entire smart energy ecosystem. Download a copy of SERA and see for yourself.
Standards. Microsoft was slow to get fully engaged in the smart grid. But now that it has the sector in its crosshairs, Microsoft has a lot of experience it can bring to bear. For instance, only Cisco is at the same level when it comes to shaping standards behind the scenes and integrating them quickly once they appear.
Security. Over the past 15 years, Microsoft has learned a lot about keeping systems safe and secure in the Internet era. In fact, it has donated its excellent Secure Software Development Lifecycle to NIST, where it is already having an impact on security standards and security implementations. (See what I mean about influencing the standards process?)
Microsoft smart grid weaknesses
Strategic consulting. Some of Microsoft's competitors are literally helping utilities rethink and remake their business models. Others are helping utilities redo their business processes from top to bottom. Microsoft does not have this level of strategic consulting in its portfolio.
Industry presence. Microsoft was late to join the industry associations that pioneered the smart grid. The resulting lack of “presence” has hurt them in an industry that measures the life of assets and relationships in decades, not years.
