The Hidden Costs Of Legacy Operational Technology

By Fawn Radmanich, Pete Perciavalle, and David Wilcoxson

Water and wastewater utilities can get stuck in a cycle of upgrading their legacy operational technology systems. Here’s how to break that cycle.

Operational technology, often referred to simply as OT, is a key tool for water and wastewater utilities. It helps them run efficiently and reliably. OT links people to assets, equipment, and systems. It supports clean water production and safe wastewater treatment. Modern automation systems — like SCADA and industrial control systems (ICS) — boost performance, help build resilience, and help meet rules and standards. Operational technology can also be the “best friend” for utility managers, plant operators, and automation specialists. Why? Because it helps reduce many of the daily challenges they face.

But here’s what often happens: Utilities get stuck in a loop. They keep upgrading their OT systems without fixing their long-term problems. They miss some key risks. One is outdated technology. Another is the hidden costs of keeping outdated operational technology running.

We’ve spent decades working with clients to plan, build, and update their operational technology systems, but here we are focusing on the hidden costs associated with legacy OT systems. We also show how smart planning can help utilities avoid these challenges. And we explain how to modernize without starting from scratch.

Water System Upgrades That Are Stuck In The Past

We’ve seen many utilities try to modernize their OT systems by replacing older systems with nearly identical versions of what they already had. For example, one utility we know replaced a 1990s-era control system with a new one that had the same setup, features, and limits. Back in the 1990s, these systems were designed for isolated, hardware-based control and little connection to other tools. It made sense then. But over the past two decades, the role of OT has grown — dramatically. Modern systems offer real-time data analysis, remote access, enterprise integration, and better cybersecurity. Still, some utilities stay static. They may lack funds or staff, or they focus only on short-term savings. Familiar tech feels safe. But this “functionally equivalent” approach can limit long-term progress and lock utilities into another generation of limitations.

It’s like buying a never-used 1985 Toyota Corolla today. Yes, it’s fresh off the lot. But it lacks modern safety features, real-time navigation, connectivity options, and other new features.

We often meet with utilities that want to replace their SCADA and ICS. But they don’t always think about upgrading with purpose. This can lead to missed chances to improve how the system performs and what it can do in the future. Modern operational technology systems offer far more than just automation.

They support real-time monitoring, remote access, predictive maintenance, and new ways to boost efficiency and service. These aren’t just nice extras. They’re tools that help utilities act faster, make better choices, and reduce long-term costs.

Misunderstanding The True Cost Of Water Automation Systems

Many utilities don’t see the full cost of owning their operational technology systems. They often place their focus on the upfront capital cost. But then they overlook the total cost of ownership over the system’s life.

At first glance, an older-style automation system might seem more familiar and less expensive. But without a long-term view, it’s easy to miss the costs that build up over time. These costs include routine maintenance, software patches, license fees, hardware swaps, and the growing challenge of keeping aging systems safe. It’s vital to look at the full costs over 10 years or more. You should also think about what you lose when systems slow down work or limit flexibility. For example, in San Diego, CA, a citywide OT modernization effort replaced old, separate systems with one shared platform. The city not only improved operational visibility but also achieved 20 times the return on investment, thanks to reduced lifecycle costs and smarter system use.

We’ve seen utilities buy OT systems the same way they purchase long-life items like rebar or pipe. Those parts can last 50 to 100 years. But operational technology systems are different. They evolve constantly. Like a smartphone, they need regular updates. Those updates help them to run smoothly, meet cybersecurity standards, and stay in sync with modern platforms and tools.

Technology obsolescence and maintenance awareness are key. Failing to account for these can lead to serious consequences. Without a full understanding of system lifecycle costs, utilities can find themselves trapped in costly upgrade cycles. These can cost millions of dollars over time.

The smarter way to invest in operational technology is to look at long-term costs, risks, and support needs. Work with a trusted consultant who can help you reveal the true lifecycle cost of your system and avoid expensive surprises down the road.

Improved Operational Technology Planning

Start with better planning to avoid upgrade traps and hidden costs. It’s not just about the system level. Look across the full operational and commercial lifecycle. Operational technology isn’t a onetime purchase; it’s a long-term strategy. It will touch every part of your utility: operations, cybersecurity, staffing, budgeting, and customer service.

Modern OT planning starts with defining the outcomes that matter most. These include:

• Improved resilience
• Lower lifecycle costs
• Greater visibility
• Integration with enterprise systems

From there, it’s about designing systems and procurement models that support those outcomes over time.

A forward-thinking OT plan should include:

• Lifecycle-aligned investment models. These plan for upgrades, training, and long-term support.
• Open system architectures. This helps to avoid vendor lockin and encourages integration.
• Transparent, scalable pricing structures. These allow for flexible growth.
• Built-in cybersecurity. It’s aligned with evolving standards from the National Institute of Standards and Technology.
• Operator training and simulation tools to support team readiness from day one.

Utilities like those in San Diego, San Francisco, and the Great Lakes Water Authority are already using this approach. We’ve helped them embed long-term planning into their OT strategies. And we’ve seen results like 20 times the return on investment, lower lifecycle costs, and greater workforce resilience.

A smarter operational technology looks ahead. It should help utilities move from just quick fixes to strategic, long-term upgrades. It turns OT into more than just system control. It becomes a tool for innovation, performance, and financial sustainability.

The Best Way To Approach A Water Automation System Upgrade

There is no one-size-fits-all solution to modernizing operational technology. And that’s the point. The best upgrade path is the one that fits your system, your team, and your long-term goals. It’s not just about the hardware or software you choose. It’s about asking the right questions before making any decisions. Questions like these:

• What should this system make possible that it cannot do today?
• How will it be supported over the next 10 to 15 years?
• What risks are we accepting, and which ones can we reduce through better design and planning?

The best operational technology upgrades begin with a clear vision. They focus on real operational needs and are designed to adapt over time. With careful planning, skilled partners, and a focus on results — not just equipment — utilities can move beyond reactive replacements. They can build systems that provide lasting value.

Setting The Foundation For Smarter Utility Operations

Upgrading your operational technology system is not just about replacing what’s old. It’s about aligning your technology choices with your long-term goals, reducing risk, and setting the foundation for smarter operations.

With the right planning and support, your next OT upgrade can do more than just keep things running. It can position your utility for the future.

About The Authors

Fawn Radmanich is a senior pursuit leader on Stantec’s water strategic pursuits team. She leads high-impact, strategic pursuits across global markets.

Pete Perciavalle is a senior vice president and water innovation leader at Stantec. Responsible for Stantec’s global water digital group, he has extensive experience in systems hardware, software data platforms, and analytics.

David Wilcoxson is a vice president and digital practice leader at Stantec. He is primarily responsible for managing Stantec’s internal water business operating unit for digital practice in North America.