Is it Smart? A Look at Cisco's Smart Grid
Cisco Inc., long known for its networking products, appears to be moving into the energy business with its new "Smart Grid" solutions which were hinted at earlier in its Unified Computing System strategy before being formally announced. Cisco describes its Smart Grid solutions as end-to-end, IP-based secure communications infrastructures. These Smart Grid solutions are designed to help utilities: optimize efficiency of power grids by better matching demand with power supply, increase the power system's security and resiliency, reduce energy network disruptions and outages, and improve environmental sustainability. The Smart Grid is envisioned as a power solution covering power generation, management, and consumption at both the enterprise level as well as the consumer level.
Cisco predicts the Smart Grid market to become a $20 billion per year industry over the course of five years. These predictions appear to be based in part on research cited from the EPRI (Electrical Power Research Institute) which estimates a cost of roughly $50 billion per year to companies due to power outages. Considering the costs associated with power outages, Cisco hopes IT dollars will be spent on Smart Grid technologies that reduce the duration - and costs - of power outages. Smart Grid technologies have the potential to dramatically reduce greenhouse gas emissions as well.
Not only does Cisco feel as if the Smart Grid is smart from an energy saving perspective, it also is looking toward the future having joined the GridWise Alliance which predicts the creation of up to 280,000 new jobs. Many of these new jobs are likely to evolve with the help from the American Recovery and Reinvestment Act of 2009. Future employees will do well by undergoing Cisco training in preparation.
According to a statement issued by Cisco Chairman and CEO John Chambers, "Networking technology will serve as the platform of a smart, more secure energy grid for the 21st century." He goes on to say that Cisco is in a unique position to work with utilities by providing a converged Smart Grid communications structure that will enable efficient, effective energy transmission and environmentally friendly new services to consumers.
Cisco is currently working with a number of utilities including GE, Silver Spring Networks, Florida Power & Light, the City of Austin, Enel, Duke Energy, ITC Holdings, and Yellow Strom. Duke Energy's SVP of Smart Grid and Customer Systems, Todd Arnold looks forward to collaborating with Cisco, saying that "Creating a smart, secure infrastructure for the 21st century is critical to the United States ' energy and environmental future." Arnold expects that the Smart Grid will improve energy efficiency, create jobs, and provide consumers with new options.
Energy efficiency and sustainability has been on the minds of utilities, enterprises, and consumers alike. Among Cisco's Smart Grid plans are products that address transmission and distribution automation, energy management services for businesses and consumers, and Smart Grid-enabled routers, switches, and software. CCNA training with its focus on Cisco routers and switches will continue to remain relevant.
Now that Cisco is lending its networking smarts to the cause, the Smart Grid may soon become a reality. Are you ready for the future?
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