Data-as-a-Service: A Game-Changer For Water Utilities In The Digital Age
By Sielen Namdar
If you have ever heard of Data-as-a-Service (DaaS), you may wonder how it applies to the water industry and what benefits it offers. Water utilities today face an increasingly complex set of challenges, from aging infrastructure and workforce shortages to regulatory requirements, climate change impacts, financial constraints, potential tariff impacts, and growing demands for affordable water services. Addressing these challenges requires utilities to embrace innovative approaches and technologies, optimize their operations, and explore new business models that allow them to do more with less.
Digital transformation has begun reshaping many industries, offering new ways to manage infrastructure and improve service delivery. However, the water sector has been relatively slower to adopt some of these alternative digital approaches due to risk aversion and public health concerns, regulatory complexities, budget constraints, long lifecycle of water infrastructure, and cybersecurity and data privacy concerns.
One emerging model that has shown promise in other sectors and is now gaining traction with water utilities is Data-as-a-Service. As outlined in the Smart Water Networks Forum (SWAN) DaaS Playbook, DaaS is defined as a partnership model in which a technology supplier operates and maintains specific hardware equipment for collecting, transmitting, and processing data, and the utility pays only for the delivered results and outcomes. This means utilities can access high-quality data on demand without the need to own and maintain the underlying infrastructure. This model also allows shifting certain risk areas such as operations and financial performance, technology upgrades, and cybersecurity to the provider. DaaS has gained momentum in industrial and agriculture sectors for addressing water-related concerns; however, there is little information on how to adopt this model, including the associated risks and required utility maturity factors.
At the recent AWWA/WEF Utility Management Conference, a group of water utility and industry leaders explored this topic further in collaboration with SWAN. SWAN hosted a DaaS workshop featuring real-world case studies presented by several organizations including the City of Grand Rapids, Michigan. The presenters showcased how these organizations have successfully implemented DaaS solutions for water utilities. Following the presentations, participants engaged in roundtable discussion to assess how DaaS could be applied in utilities for different size municipalities.
Critical factors were discussed including the specific circumstances under which a utility might benefit from DaaS, the challenges they would need to overcome to adopt the model based on the size of the municipality, how to structure a successful DaaS initiative, and how to measure it. Participants analyzed key adoption barriers, such as utilities’ varying levels of digital maturity, concerns over data security, and internal resistance to outsourcing data-related operations. They also examined how utilities can build a strong business case for DaaS, emphasizing the need for clear return-on-investment (ROI) calculations and effective internal and external stakeholder engagement and buy-in.
Another major topic of discussion was the tactical and technical aspects of implementing DaaS. Participants considered how utilities should define service-level agreements (SLAs) with solution providers to ensure reliable and regulatory-compliant data delivery. They also explored procurement strategies, including the specific language that should be included in requests for proposals (RFPs) to ensure technology providers meet performance expectations. Additionally, teams examined how the location of data collection devices, system integration with existing infrastructure, and ongoing maintenance responsibilities could influence the overall success of a DaaS implementation.
The workshop participants underscored several key benefits of the DaaS model, such as cost savings, operational efficiencies, and improved access to advanced digital technologies. Leaders acknowledged that while initial adoption may require overcoming procurement and regulatory hurdles, the long-term advantages — such as enhanced predictive maintenance capabilities, reduced downtime, and optimized asset management — make DaaS an attractive option for many utilities. Importantly, the discussions highlighted that for DaaS to be successful, strong partnerships between utilities and technology providers are essential, ensuring data reliability, service continuity, and long-term scalability.
As the Head of the US Water Segment for Schneider Electric, I had the privilege to be a moderator at this workshop. It was great to learn about the strong interest in the growth of the DaaS delivery model, given all the benefits the teams brainstormed. At Schneider Electric, we have emerged as a key player in providing DaaS solutions to water utilities. Leveraging our expertise in digital transformation and smart technology, we design and implement DaaS models tailored specifically for the water sector. These services include managing and maintaining state-of-the-art sensors, meters, and data concentrators that gather real-time information to drive operational awareness, monitor flow rates, and provide visibility into infrastructure health.
Our DaaS solutions ensure that utilities receive accurate and actionable data without the burden of managing the technology themselves. The approach includes sophisticated data analytics and cloud-based platforms that are built on our EcoStruxure architectures. This allows utility operators to monitor and diagnose issues remotely, and optimize operational efficiency, while reducing costs. With our DaaS platform, utilities can enhance their decision-making capabilities, ensure regulatory compliance, and address water scarcity challenges proactively. We also focus on building strong partnerships with water utilities, providing ongoing support and customization to meet the unique needs of each customer. This collaborative approach ensures the reliability and high performance of the DaaS model, ultimately contributing to a sustainable and resilient water future.
As more water utilities explore digital transformation, Data-as-a-Service presents a compelling opportunity to modernize operations while minimizing risk. By shifting from traditional infrastructure ownership to an outcome-based service model, utilities can leverage leading-edge technologies without heavy capital investments or risks. With the right strategy and partnerships in place, DaaS has the potential to become a critical component of how water utilities enhance operational efficiency, improve data utilization and service reliability, mitigate operational risks, and ensure long-term sustainability.
Sielen Namdar is an Industry Executive with more than two decades of experience leading high-impact strategy for digital transformation of industries. She is currently the US Head of Water & Environment Segment for Schneider Electric and leads the strategy to drive long-term growth for municipal and industrial water segments. Prior to this role, Sielen was Cisco’s Global Head of Sustainability for Industries, and before that she was Jacobs’ Global Senior Director of Strategic Sales and Co-founder of Smart Cities Initiative.