Embracing Data-as-a-Service For Optimized And Resilient Utility Operations

By Sielen Namdar

As more water utilities explore digital transformation, DaaS presents a compelling opportunity to modernize operations while minimizing risk.

Imagine a world where water utilities can tackle their toughest challenges with leading-edge technology and creative business models — what would that look like? Today, water utilities are navigating a complex landscape filled with aging infrastructure, workforce shortages, regulatory requirements, climate-change impacts, financial constraints, potential tariff impacts, and the ever-growing demand for affordable water services. To overcome these hurdles, utilities must embrace innovative approaches and technologies, optimize their operations, and explore new business models that enable them to achieve more with fewer resources.

As digital transformation sweeps across various industries, it offers innovative methods to help manage infrastructure and enhance service delivery. Despite these advancements, the water sector has been cautious in embracing these alternative models. This hesitation stems from factors such as risk aversion, publichealth concerns, regulatory complexities, budget constraints, the long lifecycle of water infrastructure, and concerns about cybersecurity and data privacy.

A promising method that has shown success in other sectors and is now gaining traction with water utilities is Data-as-a-Service (DaaS). According to the Smart Water Networks Forum (SWAN) DaaS Playbook, DaaS is a partnership model where a technology supplier operates and maintains specific hardware for data collection, transmission, and processing, while the utility pays only for the delivered results and outcomes. This allows utilities to access high-quality data on demand without the need to own and maintain the underlying infrastructure. Additionally, this model shifts certain risk areas such as operations, financial performance, technology advancement and upgrades, and cybersecurity to the provider.

While DaaS has gained momentum in the industrial and agricultural sectors for addressing water-related concerns, there is limited information on how to adopt this model, including the associated risks and required utility maturity factors.

Water utility and industry leaders are exploring the potential of accelerating DaaS in collaboration with SWAN, the American Water Works Association (AWWA), and the Water Environment Federation (WEF). Recent case studies from various organizations, such as the city of Grand Rapids, MI, have showcased successful implementations of DaaS solutions for water utilities. These examples highlight how DaaS can be applied in utilities of different sizes, providing valuable insights into the benefits and challenges of this business model.

Utilities that have adopted DaaS have enjoyed several key benefits, including cost savings, operational efficiencies, and improved access to advanced digital technologies. 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 and energy management — make this model an attractive option for many water organizations. DaaS is particularly beneficial for utilities with limited resources or those looking to enhance their data-management capabilities without significant up-front investments.

The decision to adopt DaaS depends on a few factors, including understanding the specific circumstances under which a utility might benefit from the model, overcoming challenges based on the size of the municipality, ability to structure a successful DaaS initiative, and to measure its effectiveness. Considering the tactical and technical aspects of implementing DaaS are also crucial.

Utilities need to define service-level agreements (SLAs) with solution providers to ensure reliable and regulatory-compliant data delivery. Procurement strategies should include specific language in requests for proposal (RFPs) to ensure technology providers meet performance expectations. Additionally, the location of datacollection devices, system integration with existing infrastructure, and ongoing maintenance responsibilities can significantly influence the success of a DaaS implementation.

Water utilities must also consider key adoption barriers such as varying levels of digital maturity, data-security concerns, and internal resistance to outsourcing data-related operations. Building a strong business case for DaaS is essential, with a focus on clear ROI calculations and an effective internal and external stakeholderengagement program. Some utilities may also be concerned about the potential impact to the workforce. Providing training and support to help employees adapt to new technologies are critical. This transition can create opportunities for employees to develop new skills and take on more strategic roles within the organization. Regarding financial concerns, while there may be initial costs associated with transitioning to DaaS, the long-term savings from reduced capital expenditures and operational efficiencies can outweigh these costs. A detailed cost-benefit analysis can illustrate the financial advantages.

For water utilities that want to get started on DaaS, the following tips can be useful:

• Assess Utility Maturity: Begin by evaluating your utility’s digital maturity and readiness for adopting DaaS. Identify any internal challenges, such as cultural resistance or legal constraints, that need to be addressed before implementation.
• Build a Strong Business Case: Clearly articulate the benefits of DaaS, including potential cost savings and operational efficiencies. Develop a robust ROI calculation to gain buy-in from internal and external stakeholders.
• Engage Partnerships and Ecosystem Collaboration: Foster strong partnerships between the utility and technology providers. Understand the digital solutions and facilitate continuous communication and collaboration to build trust and ensure the success of the DaaS initiative.
• Define SLAs: Establish clear SLAs with solution providers to ensure reliable and regulatory-compliant data delivery. Include specific performance expectations in RFPs.
• Plan for Integration: Consider how DaaS will integrate with existing infrastructure and systems. Address any potential challenges related to data-collection device locations, system integration, and ongoing maintenance responsibilities.
• Ensure Compliance and Security: Adhere to regulatory requirements for data privacy and cybersecurity.
• Start Small, then Scale: Identify high-impact use cases, implement pilot projects to test feasibility of full-scale deployment, and then drive scale.

Strong partnership between utilities and technology providers is perhaps the most essential component for ensuring data reliability, service continuity, and long-term scalability. Schneider Electric has emerged as a key player and technology partner in providing DaaS solutions to water utilities. Leveraging their expertise in digital transformation and smart technology, they 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. Their 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 cloudbased platforms that are built on EcoStruxure architectures. This allows utility operators to monitor and diagnose issues remotely and optimize operational efficiency, while reducing costs. With the DaaS platform, utilities can enhance their decisionmaking capabilities, ensure regulatory compliance, and address water-scarcity challenges proactively. There is also a strong 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.

By shifting from traditional infrastructure ownership to an outcome-based service model, water utilities can leverage leadingedge 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 viability and sustainability.

About The Author

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 U.S. head of the water and environment segment for Schneider Electric and leads the strategy to drive long-term growth for municipal and industrial water segments. Prior to this role, Namdar 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.